In the evolving landscape of digital art, it’s important to consider the legalities of AI-generated art.

In the era of Web3 and Non-Fungible Tokens (NFTs), buyers gain unprecedented benefits in terms of provenance and intellectual property (IP) rights. But how do we navigate this ever-evolving landscape?

Decoding the Basics: Web3 and NFTs

Let’s quickly go over the basics:

• Web3 is the third chapter in the internet's evolution, bringing decentralization, heightened user control and a departure from the traditional, centralized platforms.

• NFTs are unique digital assets securely stored on a blockchain—a decentralized digital ledger. Each NFT can signify ownership of a specific item, whether it's digital art, music or even virtual real estate. What makes NFTs distinctive is their ability to validate authenticity, rarity, and ownership through the power of blockchain technology.

AI-Generated Art: A Legal Frontier

As technology advances, the creation of art has expanded beyond traditional means. AI-generated art, produced by algorithms and machine learning, challenges conventional notions of authorship and copyright. The legal implications surrounding AI-generated art are nuanced and require a balance between acknowledging the role of machines while preserving the rights of human creators. The world has yet to fully figure out the regulations behind this.

One key challenge is determining the rightful owner of AI-generated art. Unlike traditional art, where the artist is the clear originator, AI art involves a collaboration between human and machine. Legal frameworks are still catching up to address questions of ownership and attribution in this complex landscape.

The RealNifty Approach

RealNifty, as a curated NFT marketplace and agency for both physical and digital assets, navigates these legal waters with a commitment to transparency and fairness.

Through our platform, artists and buyers alike benefit from a clear understanding of the provenance and IP rights associated with each piece. Each NFT page has a clear link to the IP rights held by both the creator and the purchaser.

“The marriage of technology and creativity demands a reevaluation of traditional notions of authorship and ownership,” says Jamie Parmenter, RealNifty CEO. “In this transformative era, buyers are not merely acquiring art. They are investing in a transparent and secure ecosystem that safeguards both provenance and intellectual property rights.”

Web3: Empowering Art Creators and Collectors

With the advent of Web3 and NFTs, art collectors now enjoy unprecedented advantages. Provenance, the documented history of an artwork, can become an intrinsic part of the NFT.

In fact, according to Bernard Marr, a world-renowned futurist, “Blockchain records will potentially add value to pieces of NFT artwork because artists and collectors will be able to see where each piece of art came from and who has owned it since it was initially sold.” The technology is still new, there are many different methods, and it is continuously improving. AI provides further collaboration tools to move things forward.

This transparency not only enhances the collector's confidence in the authenticity of their purchase but also provides a fascinating narrative about the creation journey.

By Vinitia Swonger