ABOUT NON FUNGIBLE TOKEN
World is transforming on a very fast pace and pandemic has accelerated the digital revolution and ecosystem revolving around the internet. NFTs is one of the terminologies that are all around the internet space and probably the promotion of NFT is something that we are experiencing not only on social media platforms, but NFT is gaining popularity amongst youth and people at large, wherein, mind boggling sales figure have gained the attention of almost everyone who is active over internet space. Recently, Amitabh Bachchan’s NFT collection was sold at a price of whooping Seven core rupees.
NON FUNGIBLE TOKEN
NFT stands for Non Fungible Token, which means it is not replaceable proprietary right or Digital asset or creative work in the form of token. It means non fungible token is not exchangeable like crypto currency, as one can exchange one crypto against another crypto currency but NFT is not replaceable asset, therefore, whosoever, is holding any NFT might be the only proprietor of said NFT over internet space. For example: If one lists his digitally created cartoon character as Non Fungible Token over internet space through NFT listing platforms in that case no one can claim the ownership of said work as said cartoon character has been encrypted as token or say block chain.
ABOUT BLOCKCHAIN
Block Chain is a technology behind the digital currency and non-fungible token. Block chain is a concept which records all transactions over public internet platform. In simple words, there is no single register maintaining the data but rather a public ledger/records of computer maintaining the data all over the internet. It is like a chain of blocks, wherein, one block can be fixed at any other place by removing it, but not by copying or destroying it, therefore, once anything is on block chain it is written on public record which can’t be altered.
NFT AND COPY RIGHT
Any creative work presented in digital form can be listed as non-fungible asset, therefore, any picture, GIF, music, painting can be encrypted as NFT over internet platforms, therefore, if one has listed his painting as NFT over internet in that case ownership of said painting remains with NFT holder and said work can’t be wrongfully sold or represented as the asset of someone’s else but of NFT holder only. Therefore, block chain technology can be an answer to the fact that any copy right infringement over internet can be restrained and identified, wherein, all ownership of digital art is recorded in public ledger. In simple words like any department is maintaining the register of copyright owners, wherein, in case of NFT- the said record is maintained over public ledger spread across the internet, wherein, ownership of any work is identifiable and can be transferred through sale of NFT.
However, Copy Right Act, 1957 says that only the true owner of copy right has right to sell and distribute the work, however, NFT holder has no such right unless specifically empowered by the original owner of work. The biggest conflict arise that one who moves over NFT platform as first mover will get the advantage to represent himself in the records of internet as original owner of work, therefore, if someone list anyone’s work as NFT over platform without knowledge of original owner in that case it will encourage a volume of infringement disputes, specially, when copyright law presumes ownership with the author of work without any mandatory certificate. It is the reason that Marvel and DC has filed many infringement suits against parties for selling their work as NFT over platform with minor modification.
However, many platforms list NFT with condition of copyright ownership declaration as prior condition and in many case lists the NFT as unverified NFT. However, as per Indian copy right law regime it can be a reason for conflicts considering that copyright registration is not a mandatory but merely a declaration of creation powers, one to claim prima facie copyright unless conflicted based upon the evidence.
CONCLUSION
Block chain technology can act as a revolution to restrict and trace the infringement over digital space as well can be utilized by government departments to efficiently examine any application for intellectual property protection. Further, considering NFT Boom it is relevant for government to amend copy right laws and make necessary changes as per the present regime, wherein, mandatory certificate or agreement with owner can be marked as foremost requirement for any platform to list their asset as Non Fungible Token.
It is relevant to state that this technology relies on computer systems working round the clock, wherein, most NFT are stored on Ethereum and as per a record in April 2021, Ethereum was using 33 TWH of electricity which equals to the power consumed by any small country, therefore, such huge amount of consumption of fossil fuels and resultant, carbon emission is the real problem arising from NFT which is not an inherent need, rather, a created need which primarily raises question on world’s agenda to protect environment.
In author’s opinion, presently NFT campaign is being pushed as revolutionary asset; however, the present trend of NFT is similar to the “.Com” bubble that was busted in year 2000, therefore, any such investment into the NFT is advised to be taken with due caution and care. It is fit to emphasis here that Block Chain technology can act as revolutionary solution to many challenges of present days.
“NFT MAY NOT BE IN REAL WORLD, BUT IT IS CREATING PROBLEM FOR REAL WORLD”
Author: Dixit Mehta, Ductus Legal
DUCTUS EDGE 