The rise of artificial intelligence in the art world has led to a new category of digital art: AI-generated non-fungible tokens, or NFTs. These NFTs are unique digital assets created by artificial intelligence algorithms, and they raise important questions about the ownership and authorship of art. But the question that arises is who owns AI-generated NFT royalties? Is it the individual or organization that developed the AI generator, the person who minted the NFT, or a combination of both? These are questions that the art world is still grappling with as the use of AI in art continues to evolve.
AI-generated NFT royalties owned by the AI developer
One argument for the ownership of AI-generated NFTs is that the individual or organization that developed the AI generator should be considered the owner of the art. This is because the AI generator is the underlying technology that was used to create the NFT, and they may argue that they should be considered the creator of the art. This is based on the idea that the AI generator is the one that is responsible for the artistic decisions that led to the creation of the NFT.
For example, the AI generator may have been programmed to make certain stylistic decisions, such as the use of certain colors or brushstrokes, that led to the creation of the NFT. As such, the developer of the AI generator may argue that they should be considered the creator of the art. Additionally, the developer of the AI generator may also argue that they own the rights to the AI generator itself, which would include any art created by the AI generator. This would mean that anyone who wants to use the AI generator to create an NFT would need to purchase a license or pay royalties to the developer in order to use the AI generator.
However, if we consider AI as a tool, an AI development company owning royalties for such an NFT would be equal to a colors-production company owning royalties for Mondrian’s art. Therefore, let’s see an alternative argument.
AI-generated NFT royalties owned by the artist
Another argument for the ownership of AI-generated NFTs is that the person who minted the NFT should be considered the owner of the art. This is because an artist selected the parameters and the data fed to the AI generator, and an artist is the one who minted the NFT. Essentially, he/she could argue that they played a critical role in the creation of the NFT and that the artist should be considered the creator of the art. This is because he/she was the one who decided how the AI generator should create the art and was the one who physically minted the NFT.
In this case, AI is considered equal to a brush or a set of pastel colors – a tool that an artist uses to create art.
Compromise
A third argument is that the ownership of the art created by the AI generator could be split between the individual or organization that developed the AI generator and the person who created the NFT. This means that the smart contract that governs the NFT could specify a percentage of ownership for each party. For example, the developer of the AI generator could own 50% of the art, and the person who created the NFT could own the other 50%. This would be a way to fairly compensate both parties for their contributions to the creation of the NFT.
AI-generated NFT royalties – legally, still a grey area
It is important to note that these arguments are not necessarily mutually exclusive and different jurisdictions may have different laws regarding the ownership of AI-generated art. Therefore, it’s important to fully understand the terms and conditions of the AI generator you are using and to consult with a legal professional before creating an NFT.
The vital thing is that laws and regulations surrounding AI-generated art and NFTs are still developing, and there may be legal implications for the ownership of art created by AI generators. It’s possible that laws and regulations will evolve over time to address these issues, it is important to consider that laws and regulations may vary from country to country. Therefore, it’s important to stay up to date with the latest developments in this area and to consult with a legal professional before creating or buying an AI-generated NFT.
Despite the legal complexities surrounding AI-generated NFT royalties, it is clear that this new form of digital art is here to stay. As technology continues to advance and AI becomes more sophisticated, we can expect to see more and more art created by AI generators. It is important for the art world to come to a consensus on the ownership and authorship of AI-generated art in order to ensure that artists and creators are fairly compensated for their work.
Reaching the solution
One solution could be the creation of a collective licensing system, where the developers of AI generators and the creators of NFTs work together to establish a fair system of royalties and compensation. This could ensure that the developers of AI generators are fairly compensated for their technology, while also ensuring that the creators of NFTs are fairly compensated for their role in the creation of the art.
Finally, the topic of AI-generated NFT royalties is an issue that will have to be regulated in the near future. It is important for the art world to come to a consensus on these issues in order to ensure that artists and creators are fairly compensated for their work. As technology continues to advance and AI becomes more sophisticated, it is likely that we will see more and more art created by AI generators. It is important for the art world to stay informed about the latest developments in this area and to work together to establish a fair system of AI-generated NFT royalties and compensation for AI-generated art.
