Pharrell Williams backs DAO to protect NFT artist copyright
The producer and rapper is backing CXIP over reserving intellectual property rights
The rise of non-fungible token (NFT) platforms is leading to a growth in opportunities for young artists and creators, however, it is also paving the way for a music market with poor regulation and protection for artists.
A creator could receive up to 85% royalties on a single NFT sale plus a 15% royalty on every secondary sale. But apart from advantageous royalties, which may not happen in all cases, the commercial rights of artists is still a controversial issue because intellectual property, or NFT copyright, is a grey area.
Creators reserves all copyrights
“Creator reserves all intellectual property rights,” suggested the new-born CXIP Decentralised Autonomous Organisation (DAO) as the keywords to help protect artists’ work.
The community, which is about to launch its NFT minting platform, is backed by artists like Pharrell Williams, Justin Aversano, Jen Stark and Chad Knight.
According to its founders, the community will directly control and dictate how their creator-owned contract functions and operates, with the possibility for creators to build together.
“CXIP DAO is for creators, by creators. Every creator who has ever minted an NFT on Ethereum main net will be eligible,” they said.
Standards for ownership
The US rapper Dyl released the first-ever crypto album and recently hit the headlines after tweeting that music NFTs are more remunerable than streaming apps like Spotify.
“So far my album has done around $70,000 in music NFT sales (in 2021). Huge for me as an independent artist. It’s equal to about 23 million streams. For perspective, the album has 2 million Spotify streams, which paid only $6,000. So grateful… I will make more amazing content. Music NFTs are the future,” he said.
Dyl, a music NFT enthusiast and producer, explained to Currency.com why the CXIP DAO could play an important role in the music environment.
“Normally, NFT smart contracts do not cover copyrights. If they do, they are securities sold as NFTs, but commercial rights is still a grey area in the metaverse,” he said.
“I think Web3 needs more standards on royalties and copyrights. A DAO comprised of artists and creators could help as the community can regulate itself by deciding how to invest its budget.
“I agree with the CXIP DAO, artists should own 100% of their work. When you sell an NFT you sell the mere ownership of a collectable. We cannot cede intellectual property, it belongs to the artists who created that piece of art,” he added.
“The point is that lot of people approaching the metaverse don’t realise that their very soul is in the community and see their ownership as sterile.”
The discussion broached another NFT issue – right-click saving, which refers to the ability to right-click on an image associated with an NFT and save it.
“That’s the reason why I don’t bother people saving my NFTs with a right-click. They help increase the value of NFTs and help the growth of the community,” Dyl said.