Blockchain technology brought about a new phenomenon. Similarly, digitalization has created a virtual space governed by extraterritorial laws, which had to find its own regulation over the years. Unique events such as the diffusion of a new and disruptive technology create the ferment that leads to a disruption of the traditional ways of managing interactions. After the initial shock, these events bring to the change of the social standards involved and the creation of new ones.
The recent NFT related phenomenon raises a number of new questions for jurists, which can be only partially answered by analogy to traditional cases.
Here are some of the most controversial legal issues:
Because of the complexity of the related technologies we can’t be sure that customers, who are entering for the first time platforms designed for the creation and exchange of digital collectibles, are actually informed about the service or product they are buying.
They often don’t read the terms and conditions of a service or don’t understand the clauses. In fact, even artists often have no idea what they are creating, what rights they are giving up, and which obligations they are assuming.
For this reason it is important to create clear and transparent contracts and regulations. Rarecubes cares a lot about being transparent, that’s why we are committed to solve any doubt that may arise with each customer.
Anti-money laundering and counterfeiting
Being the intersection of two worlds, the one of art and the one of cryptocurrencies, the NFT phenomenon should be concerned by the legal obligations imposed by anti-money laundering regulations.
The current lack of tools to verify the true identity of an artist could lead to trademark counterfeiting.
At Rarecubes, for example, we have a double security measure. Thanks to the QR code created by our company , artists can sign their product.
Intellectual Property Protection
Among all the legal aspects related to this new phenomenon, the most interesting is undoubtedly the one related to intellectual property and the new way of conceiving the regulation and management of copyright.
Blockchain technology could lead to a real revolution in the field of copyright protection and administration. Thanks to the possibility of linking contractual clauses to the artworks with smart contracts, it will also be possible to pursue the goal of direct remuneration of the author.
Blockchain technology makes it possible to certify the transfer history of an NFT, as well as the authorship of the work it contains. In practice, it will be much easier to see the resale right for figurative works of art respected.
The QR code created by Rarecubes allows you to see all the information about the product once scanned. The traceability of the product and its authenticity are therefore assured!
The resale right
The possibility of following the sales of an artwork contained in the NFT can lead, through the application of percentages on subsequent sales of NFTs, to a constant and concrete implementation of the resale right.
An NFT can be much more than that. Its use in the artistic field can not only be the optimal solution in terms of “authentication” of the work, but it can automate the management of the individual copyrights existing on the work and their economic exploitation.
Before engaging in anything, remember to always ask your partner for all the information you need and for any further clarifications in case something is unclear. Also, make sure that all security measures are respected and that the process is transparent, so you won’t have any bad surprises later.
Rarecubes is always available in case you need any information regarding NFTs. Customer satisfaction and positive customer experience is our number one priority!