The rise of NFTs (Non-Fungible Tokens) has opened up new avenues for artists, presenting them with unprecedented ways to monetize their digital art. NFTs are digital assets that represent real-world objects. They are traded on blockchain technology and may be used to determine the authenticity and ownership of a particular object. When a person buys an NFT, it means that the person owns only that particular copy of the work. An artist confers ownership of the token but does not, by default, transfer the actual copyrights of the work itself. This creates a critical dichotomy for artists.
In India, the Copyrights Act, 1957 governs laws related to copyrights. It confers certain rights on the artist including the rights to reproduce and distribute, to display or to create any derivatives of the work. This includes the right to mint an NFT. The ownership of an NFT is limited to ownership of the digital asset and does not equate to the ability to reproduce, modify or commercially use the token. Any such contravention would amount to copyright infringement and punishable under the Act. The author may, however assign his rights to the buyer or authorize licensing of his work.
However, the reliance of NFTs on smart contracts and their trans-boundary nature pose a significant challenge. Moreover, policing of copyrights enforcement and their infringements beyond the limits of the real world remains a daunting task. Further, many artists are engaging in NFTs without entirely comprehending the legal nuances. Missteps coupled with inadequate Indian laws can result in significant losses for our Indian artists.
While the Copyrights Act, 1957 remains a robust legal safeguard for artists, a better understanding of the nexus NFTs and copyright law is the need of the hour. Clearing ambiguities, promoting awareness and bridging legal gaps would ensure the safety of our Indian artists in their global endeavours. In this era of evolving jurisprudence, an artist must master both his art and the law.
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