Is expiring copyright the next goldmine for NFTs?
Although non-fungible tokens (NFTs) are best known in the form of digital art, they exist in many other forms and represent much more than just art.
In the creative industry, NFTs have been used by musicians such as Kings of Leon to release their latest album. In the sports industry, NFTs are created to record the highlights of major sporting events such as the NBA. In the consumer product industry, Nike, Gucci and many others sell their digital brands in the form of NFTs. Many more real-world applications of NFTs are still to be explored, and one of them is the digital publishing industry.
The game-changing implications of publishing and promoting books with NFTs have already been widely discussed by many. For example, the Alliance of Independent Authors’ indie writers help market their latest books using NFTs. Other associated items for the fan club, such as grade cards, are also made into NFTs. Tezos Farmation, a project built on the Tezos network, even uses the full text of George Orwell’s Animal Farm book and divides it into 10,000 parts for use as titles for the NFTs.
NFTs made from existing books are normally bound by copyright. In the case of Tezos Farmation, however, the copyright had already expired. The text from the book can be used by all parties for free. This triggers a very interesting question – how can NFTs retain copyright and royalties for books with expired copyrights?
The NFT application in the publishing industry is so far most focused on books that still have royalties and within their copyright lifespan. But there are authors whose works live long past both their mortal existence and their copyrights; Can NFTs give their properties a means of extending the life of the book and its royalties?
The journey from copyright to public property
Copyright laws are complex and vary widely around the world. Although few countries offer any copyright protection in accordance with international conventions, most jurisdictions work with the premise that copyright is protected for the author’s life plus at least 25 years after their death.
In the EU, copyright is protected for 70 years after the death of the last living author. It is the same in the United States, except that books originally published between 1927 and 1978 are protected
for 95 years after its first release. No matter how long the copyright is protected, given enough time, everything will end up free in the public domain.
When famous literature enters the public eye, the future value of the work is essentially reduced to zero. However, there is often a disconnected community that in itself values the work.
Property that has copyrights that are about to fall into the public domain has a unique opportunity to create a concrete asset in the form of NFTs from the intangible goodwill that is embedded in the disconnected society.
A good example could be Winnie-the-Pooh, a fictional anthropomorphic teddy bear created by the English author AA Milne and the English illustrator EH Shepard is loved by fans all over the world. The first collection of stories about the character was created in 1926. After almost 96 years, the copyrights had expired and the book moved to public property on January 1, 2022. The estate holding the copyright will not receive any future value from Winnie-the-Brumm even if the commercial the value of such a world-famous cartoon character will remain high for a long time.
Just before the copyright expires, the controlling estate has a window of opportunity where no one else has a legal right to do anything with the works. If the estate had spent time connecting fans with an interest in NFTs, building or collaborating on a project that resonates with them, and launching the NFT collection before the completion of the copyright period, the outcome would have been very different. It could have been a much longer copyright life for Winne-the-Pooh.
Related: Experts explain how music NFTs will enhance the connection between creators and fans
Expand the value of an expiring copyright
Currently, publishers have no incentives to cooperate with the estate of rights holders who are about to enter the public domain because the work will soon be free. A certificate of authenticity represented by a negotiable NFT may provide an incentive for such collaborations.
After the copyright expires and the work enters the public domain, the NFTs will take the royalty further into the digital world. Royalties can be generated through sales in the NFT marketplace on the blockchain, or through even more complex smart contracts created for specific uses for first editions, limited editions or signed vintage copies.
Residents who have expiring copyrights have credibility, which is a valuable resource in the NFT world, and they have nothing to lose. They are in the box to exploit their current ownership, and the potential of a digital community.
Dear characters and the worlds they live in can be a solid foundation for not only NFTs that can expand copyright, but also expand creativity across media such as literature, games, Metaverse, charity, education and many more to come.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should conduct your own research when making a decision.
