{"id":4133,"date":"2022-06-06T21:20:00","date_gmt":"2022-06-06T21:20:00","guid":{"rendered":"https:\/\/cyberscrilla.com\/staging\/4768\/?p=4133"},"modified":"2022-07-01T18:18:16","modified_gmt":"2022-07-01T18:18:16","slug":"can-nfts-be-copied","status":"publish","type":"post","link":"https:\/\/cyberscrilla.com\/staging\/4768\/can-nfts-be-copied\/","title":{"rendered":"Can NFTs Be Copied? This Common Misconception Explained"},"content":{"rendered":"\n

Before NFTs, digital ownership was not thought of the same way. Now with the advancement and implementation of NFTs across multiple industries, many are curious to know if you can simply copy an NFT?<\/p>\n\n\n\n

You can\u2019t copy an NFT because it’s a unique address published on the blockchain. However, you can copy the underlying creations of an NFT, which are subject to copyright laws. Also, copying an NFT’s underlying creation does not grant you access to the utility that might come with ownership of an NFT.<\/strong><\/p>\n\n\n\n

To really understand why you can\u2019t simply copy an NFT, it\u2019s important to know what an NFT is<\/a> and what you actually own when you buy one.<\/p>\n\n\n\n

What Is An NFT?<\/h2>\n\n\n\n

An NFT is a line of code<\/strong>. That\u2019s it! It\u2019s a digital representation of something such as an image or video, that is minted on the blockchain. Distinguishing the difference of an NFT from its underlying work is the key takeaway.<\/p>\n\n\n\n

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Me at the Idaho Crypto Summit: Source<\/a><\/figcaption><\/figure>\n\n\n\n

While attending the Idaho Crypto Summit<\/a> hosted by Bradlee R. Frazer, an Internet & Intellectual Property Attorney at Hawley Troxell<\/a>, Brad quickly corrected me when I stated that Beeple\u2019s image Everydays: The First 5000 Days<\/a>, was an NFT. I learned that it is not an NFT.<\/strong><\/p>\n\n\n\n

To better understand what an NFT is and why it\u2019s technically impossible to copy one, let me first explain what I learned about copyright from Brad.<\/p>\n\n\n\n

First off, he noted that copyright is a noun, not a verb. You receive copyright when you have a sufficiently creative idea that is then fixed into a tangible form of expression. The author is the sole owner of the copyright unless the owner legally transfers the copyright to someone else.<\/p>\n\n\n\n

Furthermore, in accordance with 17 U.S.C. Section 106,<\/a> the copyright holder may also stop others from copying, distributing, making derivative works, publicly performing, and publicly displaying your work.<\/p>\n\n\n\n

That being said, the original creative work of an NFT and its copyright lives independently from the blockchain. Purchasing an NFT generally results in the acquisition of a URL or URI that links to the underlying work, not the work itself.<\/p>\n\n\n\n

Okay, but what about <\/strong>smart contracts<\/strong><\/a>? Aren\u2019t they a legally binding contract?<\/strong><\/p>\n\n\n\n

According to the Copyright Review Board<\/a>, only a person can be an agent in law. That means artificial intelligence like smart contracts can\u2019t enter contracts. So, if the creator of an NFT is utilizing smart contract technology to issue their holders’ copyright, then it’s still unclear whether it\u2019s legally valid or not.<\/p>\n\n\n\n

Why You Can\u2019t Copy An NFT<\/h2>\n\n\n\n

You can\u2019t copy an NFT because it is an immutable code that lives on the blockchain. Now, I suppose you could literally copy the text that makes up the code, but there\u2019s nothing you could do with it beyond looking at it.<\/p>\n\n\n\n

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A copycat printing images of itself<\/figcaption><\/figure>\n\n\n\n

Since an NFT\u2019s code is immutable\u2014meaning it\u2019s unable to be changed\u2014there will forever only be one of those codes to exist on the blockchain.<\/p>\n\n\n\n

So what do you really get when you <\/strong>buy an NFT?<\/a><\/p>\n\n\n\n

Legally speaking, you are buying the \u201cimmutable proof of provenance\u201d (basically you\u2019re buying code that was minted on the blockchain that represents something else), but not the underlying creation or its copyright.<\/p>\n\n\n\n

Of course, you might still receive other value via utility<\/a> from the underlying work and the flex of owning the NFT, but that\u2019s about it. That\u2019s why you can\u2019t technically copy an NFT.<\/strong> Yes, you can copy the underlying work of an NFT, but there\u2019s no way to copy the actual ownership of the code that lives on the blockchain for it is immutable.<\/p>\n\n\n\n

Can An NFT\u2019s Image Be Copied?<\/h2>\n\n\n\n

If you can\u2019t technically copy an NFT, then can you copy its underlying creation such as an image? It depends.<\/p>\n\n\n\n

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Copying each other’s NFT images<\/figcaption><\/figure>\n\n\n\n

You can\u2019t copy an image associated with an NFT that has copyright to reproduce, publish or distribute the work. That would be a copyright infringement, which is illegal. To use someone else\u2019s image or creative work, you need to get permission from the copyright holder.<\/p>\n\n\n\n

Remember, the copyright holder is the original creator of the work, not the holder of the NFT (unless the creator signed over the copyright to the NFT holder). So if you want to use an image or any other underlying work from an NFT beyond what\u2019s allowed by the Fair Use doctrine<\/a>, then you need to find out who legally holds the copyright to get a license or permission to use it from the creator.<\/p>\n\n\n\n

The Fair Use doctrine is a legal doctrine that promotes freedom of expression by permitting the unlicensed use of copyright-protected works in certain circumstances. Some acceptable examples for using a work that has copyright include criticism, parody, news reporting, research, and teaching.<\/p>\n\n\n\n

So if you are someone with a mastermind plan to use someone else\u2019s work to benefit yourself, you might want to reconsider.<\/p>\n\n\n\n

Are There Fake NFTs?<\/h2>\n\n\n\n

There is no such thing as a fake NFT. Since every NFT is published as a unique and immutable code on the blockchain, there can only ever be one of the same NFT. But there can be NFTs that use the same underlying work as a previously published NFT. The blockchain will always reveal the true asset.<\/p>\n\n\n\n

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Bored Ape Yach Club #1890 compared to Bored Ape Yacht Club Derivative Art – Bored DiDoodle #735<\/figcaption><\/figure>\n\n\n\n

When people ask the question regarding fake NFTs, what they\u2019re really asking is if someone can create a separate NFT and utilize the same underlying work that was used in the creation of the original NFT? The answer is yes, of course!<\/p>\n\n\n\n

The same way that I can copy an image from the internet and republish it to the internet as my own, can be done on the blockchain with NFTs. That\u2019s not to say that it is right or even legal, but it has been done before.<\/p>\n\n\n\n

That\u2019s the beauty of the blockchain though when compared to the internet. The internet isn\u2019t a ledger, so it\u2019s more difficult to track down who the original creator is. Whereas the blockchain is a digitally distributed, decentralized, public ledger, meaning you can use a blockchain explorer like Etherscan<\/a> to view every transaction that has ever occurred to find out who the creator is and when an NFT was first created.<\/p>\n\n\n\n

If you ever suspect that an NFT represents the work of another NFT brand, make sure to check the blockchain to ensure that what you are purchasing was created by the right person and confirm the date of creation. If you don\u2019t know who initially created an NFT and the date they published it, then you probably shouldn\u2019t be buying an NFT.<\/p>\n\n\n\n

Who Can Sue For Copying An NFT\u2019s Underlying Work?<\/h2>\n\n\n\n

Only the copyright owner can sue you for using an NFT’s underlying creative work. If the creator retains copyright ownership, then they can sue you. If the NFT holder obtains the copyright to the NFT\u2019s underlying work, only then, can they sue you.<\/p>\n\n\n\n

For example, let’s say that I painted a beautiful piece of artwork on a canvas. Then I decided to mint that same piece of art on the blockchain as an NFT. My best friend Bob notices my new NFT and decides to buy it. Cool, now he owns the NFT. <\/p>\n\n\n\n

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John, Bob, and I enjoy a conversation about copyright law<\/figcaption><\/figure>\n\n\n\n

But wait, his worst enemy John decides that he\u2019s going to right-click save the image from Bob\u2019s NFT to create his own clothing line. Bob wants to sue John for using his NFT, can he? No.<\/strong><\/p>\n\n\n\n

Since Bob only owns the NFT (a digital representation of my original artwork), he has no right to sue John. Since I am the original creator, that automatically makes me the copyright owner. And since I never transferred the copyright to Bob, there\u2019s nothing he can do about John making a fortune from the image he right-clicked save from his NFT.<\/p>\n\n\n\n

However, if Bob were to inform me that John was using my artwork to profit from his own clothing line, then I would have a right to sue John. Take that!<\/p>\n\n\n\n

Why Would Someone Want to Copy An NFT Then?<\/h2>\n\n\n\n

There are a few reasons why someone might want to copy an NFT. Below are some of the most common reasons.<\/p>\n\n\n\n