Latest Articles

HomeCryptoWill expiring copyrights be the next goldmine for NFTs?

Will expiring copyrights be the next goldmine for NFTs?

When it comes to nfts, most people think of digital art, but in the future, expiring copyrights can be saved, updated and reused through non-fungible token technology.

While non-fungible tokens (NFTs) are most often found in the form of digital art, they also exist in many other forms that represent more than just art.

In the creative industries, NFTs have been used by some musicians to release their latest albums, such as the band Kings of Leon. In the sports industry, NFTs are created to record the highlights of major sports events such as the NBA. In the consumer goods industry, Nike, Gucci, and many others are selling their digital branded products as NFTs. More real-world applications of NFTs remain to be explored, one of which is the digital publishing industry.

The game-changing implications of using NFTs to publish and promote books have been widely discussed by many. For example, the Alliance of Independent Authors is helping independent authors use NFTs to promote their latest books. Other related items for the fan club, such as character cards, are also made into NFTs. Tezos Farmation, a project built on the Tezos network, even used the full text of George Orwell’s Animal Farm book, splitting it into 10,000 copies for the title of the NFT.

NFTs created from existing books are often subject to copyright. In the case of Tezos Farmation, however, the copyright had expired. The text in the book is free for use by any party. This raises a very interesting question: how do NFTs protect the copyright and royalties of books that have expired?

So far, NFT applications in the publishing industry have focused on books that still have royalties and are within the validity period of their copyrights. However, there are also writers whose work lives on long after their death and copyright expiration; could NFTs provide their legacy with a means of extending the life of their books and royalties?

The journey from copyright to the public domain

Copyright laws are complex and vary widely around the world. While few countries do not provide copyright protection under international conventions, most jurisdictions work on the premise that copyright is protected during the author’s lifetime and for at least 25 years after his death.

In the EU, copyright is protected for 70 years after the author’s death. The same is true in the US, the only difference is that books published between 1927 and 1978 will be protected for 95 years after their first publication. No matter how long the copyright is protected, given enough time, anything will eventually go into the public domain for free.

When a well-known literary work enters the public domain, its future value is largely reduced to zero. However, there is still often an unrelated community that essentially values ​​the work.

Copyrighted heritage is about to enter the public domain, and there is a unique opportunity to leverage the intangible goodwill embedded in disconnected communities to create tangible assets in the form of NFTs.

Winnie the Pooh is a good example, a fictional anthropomorphic teddy bear created by British author A.A. Milne and British illustrator EH Shepard, beloved by fans all over the world. The first collection of stories about the character was written in 1926. After 96 years, the copyright expires and the book enters the public domain on January 1, 2022. While the commercial value of the world-famous cartoon character Winnie the Pooh will remain high for a long time to come, the legacy of holding the copyright will not gain any future value from Winnie the Pooh.

Extend the value of an expiring copyright

Currently, there is no incentive for publishers to work with copyright holders who are about to enter the public domain, as the works will soon be free. Certificates of authenticity represented by tradable NFTs may provide incentives for such collaboration.

After the copyright expires and the work enters the public domain, NFTs will bring royalties further into the digital world. Royalties can be generated through NFT marketplace sales on the blockchain, or through the creation of more complex smart contracts for specific use cases of first editions, limited editions, or signed vintage editions.

Well-loved characters and the worlds they inhabit can be a solid foundation for NFTs that expand not only copyright, but creativity in mediums like literature, gaming, metaverse, philanthropy, education, and more.