Upphovsrättsligt skydd för verk i Non Fungible Tokens - En undersökning ur upphovsrättsinnehavarens perspektiv
(2022) JURM02 20221Department of Law
Faculty of Law
- Abstract (Swedish)
- Denna uppsats behandlar upphovsrättsliga intrång vid myntandet av Non Fungible Tokens (NFTs). Samtidigt som en ny värld av möjligheter har öppnat upp sig för rättighetsinnehavare och kreatörer i samband med NFTs framväxt har också en rad juridiska problem och otydligheter uppkommit. Teknikens utveckling sker i en hastighet som juridiken sällan kan upprätthålla. Tillämpligheten och kompatibiliteten av de juridiska regelverken och domstolens praxis i förhållande till nya tekniska fenomen såsom NFTs är därför ofta svåröverskådlig. Avhandlingen söker lokalisera upphovsrättsliga problem som rättighetsinnehavare stöter på i takt med att NFTs kopplade till upphovsrättsliga verk blir allt mer vanligt förekommande på marknaden. Syftet är att, ur... (More)
- Denna uppsats behandlar upphovsrättsliga intrång vid myntandet av Non Fungible Tokens (NFTs). Samtidigt som en ny värld av möjligheter har öppnat upp sig för rättighetsinnehavare och kreatörer i samband med NFTs framväxt har också en rad juridiska problem och otydligheter uppkommit. Teknikens utveckling sker i en hastighet som juridiken sällan kan upprätthålla. Tillämpligheten och kompatibiliteten av de juridiska regelverken och domstolens praxis i förhållande till nya tekniska fenomen såsom NFTs är därför ofta svåröverskådlig. Avhandlingen söker lokalisera upphovsrättsliga problem som rättighetsinnehavare stöter på i takt med att NFTs kopplade till upphovsrättsliga verk blir allt mer vanligt förekommande på marknaden. Syftet är att, ur upphovsrättsinnehavarens perspektiv, klarlägga under vilka omständigheter upphovsrättsinnehavare kan åberopa sitt upphovsrättsliga skydd då deras verk myntas i NFTs. Analysen tar sikte på tre situationer som blir upphovsrättsligt intressanta.
För det första undersöks i vilken mån skapare av generativa verk kopplade till NFTs åtnjuter upphovsrättsligt skydd. En av de mest vanligt förekommande typerna av NFTs består av samlingskollektioner av avatarer, såsom Bored Ape Yacht Club (BAYC). Verken som kopplas till dessa NFTs skapas helt, eller delvis, med hjälp av datorer. Uppsatsen undersöker de upphovsrättsliga gränserna för kravet på mänsklig inblandningen vid skapandet av dessa verk och finner att gränsen är otydlig.
För det andra utreds under vilka omständigheter en rättighetsinnehavare med framgång kan hävda att ett upphovsrättsligt intrång har skett när en tredje person myntar en NFT kopplad till rättighetsinnehavarens verk. Vid myntandet av en NFT kan koppling till ett upphovsrättsligt skyddat alster skapas. Kopplingen kan ske på olika sätt. Dels kan verket i sin helhet laddas upp på den blockkedja där en NFT lagras. Dels kan en länk som hänvisar till ett separat lagrat verk skrivas in i NFTn. Det står klart att uppladdning av verket i sin helhet utgör intrång i rättighetsinnehavarens ensamrätt till exemplarframställning av verket. Det blir mer komplicerat när NFTn endast innehåller en länk till den plats där verket lagras. Uppsatsens slutsats är att det under vissa omständigheter kan bli fråga om otillåten överföring till allmänheten. Avgörande blir om myntaren kan bevisa att hon inte har insikt om att ett intrång begås då hon i en NFT länkar till rättighetshavaren verk.
Sammanfattningsvis dras slutsatsen att upphovsrättsinnehavare vars verk myntats i NFTs finner sig själva i ett rättsläge där mycket ännu är ovisst. I skrivande stund har EU-domstolen ännu inte behandlat upphovsrättsliga intrång i relation till NFTs. Möjligheterna att kunna åberopa upphovsrätt till generativa verk i NFTs ökar vid en minimerad grad av inblandning av datorer. Vad gäller ensamrätten tycks det stå relativt klart att den som olovligen myntar en NFT genom att ladda upp ett verk på blockkedjan gör sig skyldig till ett upphovsrättsligt intrång. EU-domstolen lär pröva upphovsrätten till verk kopplade till NFTs i relativ närtid. Tills dess förblir rättsläget till stora delar oklart. (Less) - Abstract
- The introduction of Non Fungible Tokens (NFTs) on the digital crypto market provides copyright holders new opportunities to exhibit, distribute and capitalize on their works. NFTs are cryptographic tokens connected to specified assets. The assets are usually digital files, but NFTs can be connected to tangible assets as well. The connection between a NFT and an asset is made in the creation process of the NFT, which is called minting. Artworks and other works that may be protected by copyright are commonly used when minting an NFT. Creators and right holders who are curious and innovative have been able to create great economic value during the ongoing NFT hype. Simultaneously, their possibilities to protection and effective enforcement of... (More)
- The introduction of Non Fungible Tokens (NFTs) on the digital crypto market provides copyright holders new opportunities to exhibit, distribute and capitalize on their works. NFTs are cryptographic tokens connected to specified assets. The assets are usually digital files, but NFTs can be connected to tangible assets as well. The connection between a NFT and an asset is made in the creation process of the NFT, which is called minting. Artworks and other works that may be protected by copyright are commonly used when minting an NFT. Creators and right holders who are curious and innovative have been able to create great economic value during the ongoing NFT hype. Simultaneously, their possibilities to protection and effective enforcement of their copyright are challenged.
The purpose of this thesis is to examine under what circumstances right holders can invoke their copyright when their works are minted in NFTs. The analysis aims to clarify the right holders current legal situation in relation to the issues and uncertainties that has, or will, arise as the phenomenon of NFTs become increasingly popular. The essay provides the reader a basic but essential presentation of the technology behind NFTs. The technical background is limited to the extent that is relevant for the legal analysis of the thesis. This partly non-legal chapter is relevant for the comprehension of the legal issues that copyright holders face globally due to NFT's growth in the crypto market.
Firstly, the essay examines whether right holders can invoke copyright to generative works that are connected to NFTs. One of the most common categories of NFTs are limited collections of unique avatars, such as the famous Bored Ape Yacht Club (BAYC). These NFTs are created completely, or partly, by computers and thus they are classified as generative art. The thesis concludes that it is likely that the creator of these avatars can not successfully claim any copyright to these sorts of works in NFTs. A study of the copyright regulation as well as of the rulings of CJEU shows that the originality criterion can only be satisfied when a work reflects on the author’s personality and expression of their creative ability. As the CJEU has yet not made any rulings on computer assisted works. Therefore it remains unclear to what extent works that consist of parts made by humans, but are put together by algorithms, can be considered protected by EU copyright law.
Secondly, the thesis examines under what circumstances copyright holders can claim an infringement in their exclusive rights when a third party mints an NFT of their work. The thesis finds that their chances differs depending on whether the NFT is connected to a on-chain work or an off-chain work. In the former case, the work is uploaded on the blockchain, which probably constitutes an unlawful copy of the work. In the latter case, the minting of the NFT does not necessarily constitute an infringement of the exclusive rights of the copyright holder. A NFT connected to an off-chain work does not contain any embodiment of the work, which precludes unauthorized copying. Off-chain works are stored separately and the connection to the NFT usually consists of a link in the smart contract to the storage location of the work. The thesis finds that the minting of an NFT that links to a copyright protected work could, under certain circumstances, constitute an unlawful communication to the public.
In conclusion, it remains unclear under what circumstances right holders can invoke copyright when their works are minted in NFTs. There are indications that generative art in NFTs is not protected, but the amount of human involvement needed to achieve the requirement of originality is unclear and and needs to be subject to review on a case-by-case basis. Neither has the unauthorized minting of NFTs been subject for the CJEU.
Right holders are most likely to be able to invoke their copyright if the unauthorized minter, or someone else, illegally uploads the right holders work. The uploading process is separate from the minting, which is the subject of the thesis. However, the act of linking the NFT to the work is included in the minting process. If the minter links for profit, and is presumed to have knowledge of the infringement, there is a chance that the right holder can claim her rights against the minter. Rulings form the CJEU are likely to be expected within the coming years. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9080681
- author
- Södergren, Tyra LU
- supervisor
- organization
- alternative title
- Copyright protection for works in Non Fungible Tokens - A study from the copyright holder's perspective
- course
- JURM02 20221
- year
- 2022
- type
- H3 - Professional qualifications (4 Years - )
- subject
- language
- Swedish
- id
- 9080681
- date added to LUP
- 2022-06-15 08:39:24
- date last changed
- 2022-06-15 08:39:24
@misc{9080681,
abstract = {{The introduction of Non Fungible Tokens (NFTs) on the digital crypto market provides copyright holders new opportunities to exhibit, distribute and capitalize on their works. NFTs are cryptographic tokens connected to specified assets. The assets are usually digital files, but NFTs can be connected to tangible assets as well. The connection between a NFT and an asset is made in the creation process of the NFT, which is called minting. Artworks and other works that may be protected by copyright are commonly used when minting an NFT. Creators and right holders who are curious and innovative have been able to create great economic value during the ongoing NFT hype. Simultaneously, their possibilities to protection and effective enforcement of their copyright are challenged.
The purpose of this thesis is to examine under what circumstances right holders can invoke their copyright when their works are minted in NFTs. The analysis aims to clarify the right holders current legal situation in relation to the issues and uncertainties that has, or will, arise as the phenomenon of NFTs become increasingly popular. The essay provides the reader a basic but essential presentation of the technology behind NFTs. The technical background is limited to the extent that is relevant for the legal analysis of the thesis. This partly non-legal chapter is relevant for the comprehension of the legal issues that copyright holders face globally due to NFT's growth in the crypto market.
Firstly, the essay examines whether right holders can invoke copyright to generative works that are connected to NFTs. One of the most common categories of NFTs are limited collections of unique avatars, such as the famous Bored Ape Yacht Club (BAYC). These NFTs are created completely, or partly, by computers and thus they are classified as generative art. The thesis concludes that it is likely that the creator of these avatars can not successfully claim any copyright to these sorts of works in NFTs. A study of the copyright regulation as well as of the rulings of CJEU shows that the originality criterion can only be satisfied when a work reflects on the author’s personality and expression of their creative ability. As the CJEU has yet not made any rulings on computer assisted works. Therefore it remains unclear to what extent works that consist of parts made by humans, but are put together by algorithms, can be considered protected by EU copyright law.
Secondly, the thesis examines under what circumstances copyright holders can claim an infringement in their exclusive rights when a third party mints an NFT of their work. The thesis finds that their chances differs depending on whether the NFT is connected to a on-chain work or an off-chain work. In the former case, the work is uploaded on the blockchain, which probably constitutes an unlawful copy of the work. In the latter case, the minting of the NFT does not necessarily constitute an infringement of the exclusive rights of the copyright holder. A NFT connected to an off-chain work does not contain any embodiment of the work, which precludes unauthorized copying. Off-chain works are stored separately and the connection to the NFT usually consists of a link in the smart contract to the storage location of the work. The thesis finds that the minting of an NFT that links to a copyright protected work could, under certain circumstances, constitute an unlawful communication to the public.
In conclusion, it remains unclear under what circumstances right holders can invoke copyright when their works are minted in NFTs. There are indications that generative art in NFTs is not protected, but the amount of human involvement needed to achieve the requirement of originality is unclear and and needs to be subject to review on a case-by-case basis. Neither has the unauthorized minting of NFTs been subject for the CJEU.
Right holders are most likely to be able to invoke their copyright if the unauthorized minter, or someone else, illegally uploads the right holders work. The uploading process is separate from the minting, which is the subject of the thesis. However, the act of linking the NFT to the work is included in the minting process. If the minter links for profit, and is presumed to have knowledge of the infringement, there is a chance that the right holder can claim her rights against the minter. Rulings form the CJEU are likely to be expected within the coming years.}},
author = {{Södergren, Tyra}},
language = {{swe}},
note = {{Student Paper}},
title = {{Upphovsrättsligt skydd för verk i Non Fungible Tokens - En undersökning ur upphovsrättsinnehavarens perspektiv}},
year = {{2022}},
}