Music NFTs

[Steve Mueske]

I'm starting to look seriously into music NFTs as a viable alternative to the mainstream music industry.

 

https://www.coindesk.com/learn/what-are-music-nfts/

 

Thoughts?

[Peggy]

Hi Steve,

 

It's a very interesting idea.  Lots to research and learn. Here's a link to a blog entry that you might also find has some good information. 

 

 

[john]

Interesting. I’ve looked at a few different NFT options. There’s been a few ideas and platforms trying to become established. It’s getting to the point that there are some that are quite viable and attractive. Definitely worth a more in-depth look for sure.

[MikeRobinson]

Let me please try to head off these illusions at the pass ...

 

When it comes to trying to sell your work and to thereby make money from it, there are actually no "crypto" alternatives to cold, hard cash.  "Legal Tender."

 

And, perhaps vastly more importantly, there are no legal alternatives to "[US: registered] copyright."  (Which will cost you $35, even for a "collection" of songs, at copyright.gov, and take legal effect immediately, as soon as the web-site gives you your receipt.)

 

(In other nations, your situation will be different, but most nations these days subscribe to a set of "international copyright conventions," which are legally-binding treaties.)

 

"If you want to sell your car, you must  first secure the government-issued Certificate of Title."  ("Pay up!"  to get one!!) Having done that, you can now try to sell your car however you please: to your brother, to a used-car lot, or to a scrap dealer.  There is no legal substitute for this – not NFT, nor anything else. A reputable business (or family member) "will not give you the time of day" unless you can produce it.  Exactly the same principle applies everywhere.

 

As the owner, you are then empowered to try to sell your intellectual property by any means you wish ... including, if you like, "NFT."  And you are likewise empowered to change your mind:  "ownership has its privileges."  The entire power of government is available to protect your legal rights, now that you have formally asserted them.  ("All for $35!")

 

And: with regards to "the NFT business (sic ...) proposition," all that I can say is:  "as the owner, I prefer cash."

Edited April 27, 2022 by MikeRobinson

[john]

From what I read, there is nothing claiming to be a rival to US copyright, or copyright in any territory for that matter. It does talk of division of royalties, and that unless explicitly specified, the buyer doesn’t gain any kind of copyright claim. At no point does it appear to be claiming it is a substitute.

That aside, there is no legal requirement to register a song in the USA (last I looked). What there is, is a very strong incentive to register as you don’t get full rights protection and compensation if you don’t register.

 

What the article does talk about is different routes being explored to exploit your asset. Mostly because NFT are focused on selling unique items based on a single transaction. implementing a royalty model based on crypto currency is relatively new.

 

Without entering into a political debate, and purely to add to this topic, what I understand the G7 is currently looking at central bank based digital currency, though my understanding is that it will be “programmable” currency, making it more akin to vouchers. That is very scary, because then central government or even your employer could dictate what you can or can’t spend your digital currency on! Eeek!

[MikeRobinson]

John, copyright registration does not exist in every country, but many foreign songwriters obtain US registrations for one simple purpose:  it is a easily verifiable claim of ownership that has been made under the legal penalty of perjury.  It's all recorded in a publicly-searchable official government database: anyone anywhere can simply look it up.

 

As the seller, you assert copyright, follow the legal notice ("©") requirements, and register your claim.  ("Go ahead ... splurge ...")  Screen-print the final confirmation page from the website and you're good to go.

 

(As noted, you can register a "collection" at one time for one price. This concept has no legal meaning: each copyright stands alone.)

 

Registration now serves the same purpose (from the buyer's point of view) as the certificate of title for a car.  The buyer (or, your potential agent ...) can "do 'due diligence'," find the claim that anyone else ("the Judge") can likewise find, and document exactly when-and-where s/he did so.  Now, s/he can proceed with confidence that s/he is not, in fact, "dealing in stolen goods."  S/He has a perfected "innocent infringement" defense, as well as a possible counter-claim of fraud against you.

 

The penalties that are set forth in copyright law are n-a-s-t-y, and of course meant to be so.

 

While, yes, "copyright is intrinsic to the moment of creation," no business(wo)man wants to find themselves in a situation where they are now faced with a lawsuit, and it is "just your word against someone else's" with nothing to back it up. (Given the consequences to me, why should I just take your word for it? Don't you have $35?)

 

Having secured your provable copyright, and having complied with the notice requirements, "feel free" to try to sell your work any way you like.  If "NFT" appeals to you, mister or missus owner, go for it ...

 

In the music world, you should also be a member of a "PRO = Performing Rights Organization." Some of them charge nothing to join, and they're basically in the business of combing the world, looking for infringements and collecting your royalties.

 

Furthermore: if you find that some "NFT huckster" is selling your work without license, you can literally send the US Marshals after them ... for free ... and it will be an "open and shut case" which pays you treble damages. 💰  And you thought that "$35" couldn't even buy you dinner ...

 

"Mind your P's and Q's."  So many things in life come down to this.

Edited May 10, 2022 by MikeRobinson

[john]

5 hours ago, MikeRobinson said:

John, copyright registration does not exist in every country, but many foreign songwriters obtain US registrations for one simple purpose:  it is a easily verifiable claim of ownership that has been made under the legal penalty of perjury.  It's all recorded in a publicly-searchable official government database: anyone anywhere can simply look it up.

 

As the seller, you assert copyright, follow the legal notice ("©") requirements, and register your claim.  ("Go ahead ... splurge ...")  Screen-print the final confirmation page from the website and you're good to go.

 

(As noted, you can register a "collection" at one time for one price. This concept has no legal meaning: each copyright stands alone.)

 

Registration now serves the same purpose (from the buyer's point of view) as the certificate of title for a car.  The buyer (or, your potential agent ...) can "do 'due diligence'," find the claim that anyone else ("the Judge") can likewise find, and document exactly when-and-where s/he did so.  Now, s/he can proceed with confidence that s/he is not, in fact, "dealing in stolen goods."  S/He has a perfected "innocent infringement" defense, as well as a possible counter-claim of fraud against you.

 

The penalties that are set forth in copyright law are n-a-s-t-y, and of course meant to be so.

 

While, yes, "copyright is intrinsic to the moment of creation," no business(wo)man wants to find themselves in a situation where they are now faced with a lawsuit, and it is "just your word against someone else's" with nothing to back it up. (Given the consequences to me, why should I just take your word for it? Don't you have $35?)

 

Having secured your provable copyright, and having complied with the notice requirements, "feel free" to try to sell your work any way you like.  If "NFT" appeals to you, mister or missus owner, go for it ...

 

In the music world, you should also be a member of a "PRO = Performing Rights Organization." Some of them charge nothing to join, and they're basically in the business of combing the world, looking for infringements and collecting your royalties.

 

Furthermore: if you find that some "NFT huckster" is selling your work without license, you can literally send the US Marshals after them ... for free ... and it will be an "open and shut case" which pays you treble damages. 💰  And you thought that "$35" couldn't even buy you dinner ...

 

"Mind your P's and Q's."  So many things in life come down to this.

I am puzzled. I already know all that you spell out (though for others who maybe don’t know it is always good to have it restated) I didn’t say anything that disagreed with any of it. Not one word. So why you feel you have to jump up and down on me and put words in my mouth, I do not know.

 

I repeat. There is nothing in the article, and I will now add, nothing that I said, that mentions that NFTs are a rival to US Copyright. Nothing that says it is an either/or scenario. Nothing that says you cannot or should not register for copyright. Nothing that says “don’t join a PRO”.

 

That aside, registration of copyright does not prevent lawsuits. You start off correctly in stating that you register a claim of ownership. Claim being the operative word. There are other ways to verify claims… and still they only verify the claim, not the ownership. The details of the claim establish that on an established date you had access to the asset. You still have to back up that claim with any details of proof of creation and or ownership. If someone comes forward with a claim that predates your claim, that is verifiable by other plausible means, a court will still decide on the legitimacy of both claims.

 

All that does not mean it is not worth registration. Better, stronger verification is just that. Better. Stronger. Just not infallible.

[MikeRobinson]

John, I would never "jump up and down on you," or "put words in your mouth," and if you saw my comment in that way, I publicly apologize.  (For any further concerns, please private-message.)

 

Please bear in mind the dynamics of any on-line forum ... we can't watch one another "speak."

 

Copyright registration is simply a readily-verifiable registrar of your claim.  Of course it does not prove that you did not commit perjury, but if you knowingly made a false statement you did commit perjury.  Your formal registration gives any buyer or agency that you might want to do business with, with a very easy way and verifiable way to show any court that they have done "due diligence."  For that reason alone, it's well worth the money.  The legal situation moves from uncertainty to internationally-recognized certainty.

 

If you think that you can make money or tap a market by using "NFT," I say go for it.  It's just a slightly-novel way to market your property.  As the owner of that property, you can do anything you wish, and you can change your mind at any time.  And your heirs can keep doing that for at least 75 years after you are dead.  All for $35.

 

And if anyone out there in "NFT land" infringes upon your property rights, you can send the Hounds of Hell after them without lifting a finger.

Edited May 12, 2022 by MikeRobinson