In creative entertainment and art, movies hold the top spot as revenue earners by monetizing intellectual property rights, or IPR. IP is invaluable for production companies like Disney that can keep expanding and extending their earnings from classics like Star Wars, Marvel, and other animated classics. They gain mileage from the audience’s pre-existing relationship with the existing characters to multiply profits. In general, art forms of various types can come under the ambit of IP. Consequently, it is only a matter of time before NFT, an emerging digital art form, will acquire the IP tag and be governed by the same laws applicable for plays, movies, and other media. Eventually, it will pave the way for mass appeal, longevity, and profitability.
NFT and Copyright Protection
Although NFTs are considered as the digital versions of the original authorship work, they are only a digital representation of the creation preserved on a blockchain. It does not have the form and figure of the original artwork. If minting an original artwork with permission of its creator or if you are the sole owner, it would automatically qualify for copyright protection. It is the answer to the question – how are NFTs protected.
IPS Determines the Financial Worth of NFTs
Over the past year, a deluge of NFTs has flooded the market as it’s the latest art craze with enormous financial potential. The momentum keeps increasing because, besides millions of individual NFTs, numerous companies have come out with versions of NFTs. The abundance of free-flowing NFTs might drive the market to a point where it could become almost impossible to determine the actual value of NFTs. If the market consolidates at some point, several of the NFTs will become extinct. NFTs can retain their financial worth only until people are willing to pay for them. NFTs with the most recognizable IPs are the fittest to extend their run and maintain their earning potential by finding favor with the digital patrons. Therefore, IP rights with NFTs should be the goal for those who mint NFTs, whether individuals or companies.
Avatars Signify Social Status
Among various categories of NFTs, the avatar is the most popular currently. Avatars are pixelated or animated characters like cyberpunk or an anthropomorphized ape with a nose ring, stylishly dangling a cigarette from the mouth. These NFTs are fast becoming status symbols, and many Twitter users display such avatars on their profile pages. But only the most exclusive and NFT collections that are instantly recognizable are going to carry the symbolic weight for use as personal avatars. Consequently, to ensure that the NFTs retain their intrinsic value in the long run, the aspect of intellectual property acquires critical importance.
As we enter the era of Web3.0, where our digital counterparts emulate our physical existence, the clamor for NFT IP to ornament and augment our internet avatars will only grow. More and more NFTs will come under the ambit of IP for extended survival.
