Who benefits most as NFTs become more ‘real’?

by AryanArtnews
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Since NFT got public attention last year, the joke about NFT (a unique or irreplaceable token, mostly in the form of digital art) is that you only get a jpg that you can easily right-click on when you buy it. did. Spending money on NFTs seems like paying to “adopt” a panda or name a star in the sky. But it’s changing rapidly.

Creators are starting to add benefits to NFTs, such as live events and access to exclusive Discord, and are building high-tech fan clubs using NFTs as a gradual membership fee. And with that paid audience, NFTs proved to be a brilliant new form of creative intellectual property (IP), licensed characters to creators, and made major film rights. Give media companies the opportunity to sell for real-world money.

This is a new and quickly tiring story. NFT rights management remains a wild west, so there is no standard practice on how to sell rights or what constitutes a good deal. While this opens the door to new talents that can leverage technology without the traditional media gatekeeper, some creators have signed a deal to transfer IP rights without the protection of managers and agents in Hollywood. It is exposed to exploitation from ancient hunting. For fresh meat.

Giant NFT players Bored ApeYacht Collective (BAYC) and World of Women (WoW) have introduced a whole new rights model in which IP is completely transferred from the creator to the buyer at the time of purchase. This enables NFT. owner Making Money Directly from Licenses and Derivatives — A unique Web3 way to further blur the line between fans, creators and investors.

In Hollywood, IP may be the king, but viewers are the key to the survival of content, according to Denise Hewett, who turned from a longtime television and digital producer to the founder of a startup. “That’s why they auction the best-selling articles and the most-read books because of their built-in audience base.” Also, the NFT community has grown exponentially these days. increase. Most NFT collections have NFT caps, so the value of the crypto market, not the actual number, will have 10,000 members of the primary market community (usually the owner has the right to resell the NFT in the secondary market). Holds).

Most prominent communities such as BAYC and flower girls include celebrities such as Justin Bieber, Madonna, Gwyneth Paltrow, and Snoop Dogg, each buying NFTs for hundreds of thousands to over a million dollars. These celebrities may be true fans of artwork, but by purchasing NFTs, they are also investing in the community’s future efforts. It invested $ 24.99 in a hardcover novel, but art and artists end there. For BAYC NFT buyers (paying at least $ 288,000 each), the company first released ApeCoin to community members, and owners like Justin Bieber were first run in millions of dollars worth of cryptocurrencies. At times, their large investment may have paid off.

BAYC has just released a product that can only be purchased at ApeCoin and is adding a new layer (and price tag) to the Bored Ape universe. And in some cases, that blurry line between fans and investors can even look more cynical. For example, Reese Witherspoon purchased multiple World of Women (WoW) NFTs. This is the same collection that her production company, Hello Sunshine, later announced a media partnership. As an NFT owner and therefore an investor, Witherspoon has the potential to benefit from both sides of legally suspicious transactions in other industries.

But like many in the Web3 space, film producer and founder of blockchain fintech startup Cinebloc, Brinton Bryan is a big positive that these communities serve as a new kind of off-the-shelf marketing team. I’m looking at the possibilities. “These people form their own little army and they go out and cherry these projects. They increase the investment in the digital assets they own, so others join them. I hope that. “

This relationship can be beneficial to small creators who may not have been able to afford to market otherwise. For example, like Micah Johnson, who was first selected for movies and television by NFT Aku last year. Also, unlike traditional media artists who have to share their revenue with agents, managers and creative partners, NFT creators can benefit more from subsequent media transactions. However, such pioneering thinking is dangerous. This is especially true if these transactions have little to do with NFT-specific ones.

“The good thing about blockchain is that it’s transparent,” Hewett said of the public record aspect of the technology. “But if I choose NFT rights, it’s another deal that doesn’t happen on the blockchain. It’s probably a traditional Hollywood deal and it’s very easy for creators to be left behind.” Unlike the NFT ownership history engraved in, the terms of these media transactions are private.

Both World of Women and Bored Ape Yacht Club have expanded the scope of their rights this year, allowing NFT buyers to obtain the full IP of their purchases, transfer their license rights, and create derivatives from the creator to the owner. Introduced a new model. Kate McKean, Vice President of the Howard Morheim Literature Agency and author of the popular Agents + Books newsletter, said: “And that makes me even more indifferent [NFTs], Because we are not talking about exactly the same thing. And that may be the point for Web3 Die Hard.

The idea of ​​Web3 creators is closer to the Internet fan culture than the traditional media structure. The bigger the world of NFT characters, the wider the world of creators and Web3.

“One of the reasons creators are willing to give up their intellectual property rights is that they can benefit from their intellectual property rights through the success of derivative works of intellectual property. Future sales of NFT Brings market loyalty. ” Simondola Rouviere, founder of Untitled Frontier, states that she is a creative studio experimenting with storytelling on Web3 models.

“It’s good for everyone involved, as both creators and derivative creators can make money from it. This is what Star Wars fanfiction writers make by selling this fanfiction, while at the same time earning Disney stock. It’s the same as earning by owning. Here’s a loop of counterintuitive values. ” He added. For Web3 entrepreneurs like de la Rouviere and Bryan, audience is the goal and IP is a fair price for scaling.

But despite the recent spotlight, even those who are deeply involved in Web3 culture admit that there is still much to solve in this area. de la Rouviere believes that new models that support creative works are important to secure space for smaller and strange works, but “between NFT and real works”. The sparse link is also likely to be tested in court in the next few years. “

There is also the potential for legal backlash, given that each NFT is independently copyrighted. Andrew Gass, a San Francisco-based lawyer, specializes in new forms of IP: “NFT-linked work is getting a lot of attention, so even if it’s not NFT-linked, it’s working. IP can be potentially valuable. In general, it’s not what produces IP. “Rather, it’s a combination of images and words (a copy of a website common in NFT collections and the stories that accompany it.” (Including) may produce copyrighted characters, as in the case of cartoon book characters. The fact that NFTs are digital tokens isn’t important in most cases.

But like Web3 and cryptocurrencies, the future is not yet work As such, huge amounts of money have been put into the hottest NFT projects ($ 10 million in World of Women transactions in just one week), and investors still have access issues. In the meantime, you’re still making money right now from the potential of space.

Many NFT groups, especially women-led groups, offer charitable donations and NFT present, Gives the brilliance of accessibility. However, like the art market, NFT ownership systems are designed to raise prices to the level of demand, allowing NFTs to enter these “communities” for thousands of dollars (not millions). Limit) to those who can afford to pay.

If you continue on this path without considering the legal issues of ownership, and if it relates to NFTs as a unique form of creative work, you will benefit from the democratizing marketing of technology. Small artists who may want to receive will go at serious risk of misuse by the same old power players of the new media formats that appeared earlier.

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