Judge hails case involving ‘Quantum’ NFT
A US judge has dismissed a lawsuit involving the highly prized ‘Quantum’ NFT after deeming it a desperate attempt to con a genuine artist out of his work. The dispute surrounded ownership, as the plaintiff sought to determine whether blockchain provenance truly guaranteed ownership of digital assets.
The ruling took place on March 17, and involved Free Holdings, a Canadian company, vs Kevin McCoy, a digital artist behind ‘Quantum’ NFT. McCoy used code to create the NFT back in 2014, which represents a summary of the ongoing cycle of birth, death and rebirth.
However, the blockchain system he used to store NFT required him to periodically renew ownership rights. But in good time, McCoy defaulted on his commitment, allowing Free Holdings to purchase the registration and claim the NFT.
The artist teamed up with renowned auction house Sotheby’s to sell the NFT for $1.47 million back in 2021. This made Quantum one of the most expensive digital artworks of all time, and Free Holdings wanted a piece of it.
As a result, the company filed a lawsuit last year against McCoy and Sotheby’s, challenging ownership of the digital art. As well as claiming that both had slandered the company when it made clear its intentions to challenge the ownership of NFT.
Blockchain provenance escapes unscathed
However, James Cott, a magistrate judge for the US District Court for the Southern District of New York, has now dismissed the case. He noted that the company had not shown any substantial evidence that it owned the digital artwork or that it had been damaged by the defendants.
“Free Holdings has demonstrated nothing more than an attempt to exploit open questions of ownership in the ever-evolving NFT field to claim the profits of a legitimate artist.”
The win has left both the artist and the auction house relieved, and both said it sets a precedent for ownership in the young NFT industry.
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Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media around the world.
