Christie’s has announced the release of “Christie’s 3.0”. “An on-chain auction platform dedicated to outstanding NFT art.” Essentially, his NFT sales at Christie’s are directly on the Ethereum blockchain.
Users must have a digital wallet before setting up a Christie’s 3.0 account that will be used to bid on NFTs. This is the first time a major auction house has transitioned to selling directly on the blockchain, giving an exciting nod to the future of Web 3.0 in the art world.
But what exactly are NFTs?
Even though the term “NFT” is becoming more and more widely used, it’s still useful to take a step back and consider what NFTs actually are. Contrary to what many people think, NFTs are more than just digital art. It is a set of code that lives on a blockchain and is usually linked to a digital (or physical) asset to prove ownership of that digital (or physical) asset. A parallel can be drawn between NFTs and (for example) Chanel handbag authentication cards. An authenticity card certifies the authenticity of a handbag. Using this analogy, the NFT becomes a “card”. No A Chanel handbag.
The assets most commonly thought of as being linked to NFTs are digital art (for example, the apes from the Bored Ape Yacht Club). However, NFTs can link to a huge number of things. For example, you can prove music ownership, club membership, or event tickets (Ticketmaster recently announced a new initiative that allows event organizers to link her NFTs to each attendee’s ticket).
An exciting aspect of NFTs, therefore, is how they will be integrated into our daily lives in the future. Initiatives such as ‘Christie’s 3.0’ therefore present exciting opportunities for artists and collectors, but the continued evolution of the technology behind NFTs will likely lead to a wide variety of ‘use cases’ and innovative applications for NFTs in the future. It means that you are likely to see many applications. The utility, community, and ownership that NFTs can provide is an exciting aspect and an interesting one.
What do you own when you buy an NFT?
There still seems to be some confusion about what NFTs actually are, so it’s no surprise that disputes have arisen and are going through courts. If someone buys his NFT, we can assume that he or she owns his NFT itself, the set of codes. As a starting point, NFT ownership does not transfer any additional legal rights beyond owning the chain of code.Once you have an NFT representing your digital (or physical) asset, this can It attracts additional legal rights, such as contractual license rights and intellectual property rights such as copyright. However, there is no general sense that the NFT owner has a license or right to the asset.
In the context of digital art NFTs, NFTs are not digital art per se. This is a record stored on the blockchain that proves ownership of the digital artwork (or whatever asset the NFT is linked to). Purchasing an NFT linked to digital artwork does not automatically mean that you own the intellectual property rights in that artwork. In fact, under English law, the original artist retains copyright in the work even after it has been sold. The same principle applies to digital artwork. Also, the artist cannot sell/transfer the “moral rights” of the work to the purchaser.
Interesting questions also arise when NFT creators include elements related to other brands in their artwork. There are several high-profile lawsuits that have passed US courts addressing these issues, and you can follow them by following the NFT lawsuit tracker. here.
The right to obtain ultimately depends on the underlying legal position and wording of the NFT’s smart contract. Therefore, when buying NFTs, it is very important to seek advice to understand exactly what you are buying.