NFT’s Explained
What is a non-fungible token? Non-fungible tokens (NFTs) are unique pieces of data stored on a digital ledger- a blockchain. Non-fungible just means they are unique and can’t be exactly substituted by something else. A dollar can be replaced by any other dollar, making it fungible.
Source: Wikipedia; CactiStaccingCrane
But an NFT comes with certain unique properties. Blockchains play a pivotal role by using cryptography to link blocks into a chain of data.
NFT’s in Digital Art and Media
Recently, digital assets have included art, memes, music, videos, digital 3D works, and more.
NFT Ownership vs. Copyright Rights
NFT ownership is verifiable through the blockchain and includes a license to use the digital asset. However, ownership does not automatically include copyright. Purchasing a digital art NFT grants ownership of that specific work, but not the exclusive rights to reproduce or distribute it.
Copyrights may be separately negotiated and transferred, but they are not assumed to be part of the NFT sale.
Copyfraud Risks in NFTs
Unfortunately, copyfraud*—false copyright claims on public domain content—is common in NFTs. Some actors mint NFTs without owning the copyright. Blockchain anonymity makes verifying authenticity and tracking the original owner of a digital work difficult.
We have several answers to Frequently asked questions on our Copyright FAQ section: Infringement and Litigation, that are dedicated to Copyfraud. They begin about halfway down the page.