AI-Driven NFTs: Innovation or Issue?

NFTs, especially large collections, have seen their values drop recently, with Bored Ape Yacht Club seeing over 80% reduction in its Ethereum value. Despite this, they still dominate the NFT market, accounting for about two-thirds of it, often serving as social media profile pictures. The majority of these NFTs are computer-generated to some extent, raising questions about copyright protection. 🖼️📉

Historically, copyright laws have evolved to protect human creators. For instance, a macaque that took its own selfies in 2011 couldn’t claim copyright, rendering the photos public domain. Similarly, AI creations, which involve computer generation but are often based on human instructions, face ambiguity in terms of copyright. 🐒🤳

The U.S. Copyright Office posits that if a computer’s role in creation is passive, following mere textual instruction from a human, that work isn’t copyright protected. However, if humans significantly modify the generated work, it may be eligible for protection. The European Commission echoes a similar stance, emphasizing human creative involvement at various stages of AI work creation. 🇺🇸🇪🇺📜

Considering Bored Apes, copyright protection might exist if Yuga Labs, the creator, made creative changes to the AI-generated images before sales. Notably, in a legal case against artist Ryder Ripps, Yuga Labs avoided raising the copyright issue, perhaps fearing its potential implications. 🦍⚖️

Without copyright protection, NFT values could further decline, though holders would retain community status and other privileges. Free use of such images would become the norm, akin to the macaque selfies. This coupled with pending regulatory challenges in both the EU and U.S., puts the future of large NFT collections in uncertainty. Nonetheless, this could drive NFTs towards real-world applications and traditional art. 🌍🚀🎭.

To dive deeper, check out the complete article: https://droomdroom.com/nft-art-ai/