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Understanding copyright: The sale of art and metadata on the blockchain

Updated over a month ago

In recent years, the rise of Web3 and blockchain technology has revolutionized the way we think about art, ownership, and copyright. If you're not familiar with these concepts, it can be a bit overwhelming. One of the most fascinating aspects of this new digital landscape is the sale of art on the blockchain, particularly in the form of Non-Fungible Tokens (NFTs). Let’s break this down in simple terms, focusing on what is really being sold and how copyright plays a role.

What is an NFT?

At its core, an NFT is a unique digital asset that represents ownership of a specific piece of content, at Artega, this is in the form of visual art. Unlike traditional art, which can be physically owned and displayed, an NFT exists solely on the blockchain—a decentralized digital ledger. This means that each NFT is recorded and verified on a network of computers, ensuring its uniqueness and authenticity.

The Role of Metadata

When an artist creates an NFT, they are not merely selling the artwork itself; they are selling metadata associated with that artwork. Metadata is essentially data about data. In the context of NFTs, it includes information such as:

  • Title of the artwork

  • Artist's name

  • Creation date

  • Ownership history

  • A link to the artwork (which could be hosted on a platform)

When you purchase an NFT, you are buying this metadata that proves your ownership of the digital file. The digital file itself—like an image or video—may still be accessible to anyone online, but your NFT serves as a certificate of ownership. Just like owning a print of a famous painting doesn’t grant you the rights to reproduce or sell the original artwork, owning an NFT does not automatically convey copyright over the art it represents.

Here’s an example of the metadata you are buying - you can see, it proves you have ownership of the art, but is not the art itself. The artwork does not end up on the blockchain.

image (1).png

Copyright and NFTs

This is where things can get confusing, especially for those used to traditional art ownership. Copyright is a legal framework that grants creators exclusive rights to their works, allowing them to control reproduction, distribution, and public display. However, when it comes to NFTs, purchasing the token doesn’t grant you copyright over the artwork unless explicitly stated.

For example, if an artist sells an NFT of their painting, they may retain the copyright to the image. This means they still hold the rights to print it, reproduce it, or use it in other ways. Buyers of the NFT typically only gain the right to own the token itself, which is a representation of the artwork rather than the artwork’s rights.

Takedown Notices

Artega is for artists. We support copyright and will vigilantly uphold the industry gold standard which is the Digital Millennium Copyright Act (DMCA).

If you see your work appear on our site, please submit our Takedown Form [link] and we’ll take steps to remove the artwork from our site and penalise the offending account holder.

Only metadata, as shown above, gets transferred to the blockchain and to the buyer so there is nothing to remove from the blockchain or wallets.

The Future of Copyright and Web3

The complexities of copyright law still apply to art sold as digital assets, but licences don't automatically transfer with NFTs unless clearly stated. As this technology matures, so too will our understanding of digital ownership and copyright in the ever-evolving art world.

We invite you to explore innovative ways of integrating different licences to your NFTs while considering copyright implications. You may choose to sell limited rights alongside you NFTs, allowing collectors to use the art in certain ways, or you may choose to keep all rights reserved.

As you explore, let us know what works for you - we’re excited to discover how people use our platform to reach new audiences in ways we haven’t even anticipated!

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