ReferenceLoading the volume
ReferenceLoading the volume
No. 39AI & Digital
Also called NFT rights, non-fungible token, Web3 rights, blockchain licence
Who controls the right to create and sell NFTs or blockchain-based tokens tied to your recordings.
Watch closely
Ambiguous existing grants may be used to claim NFT rights; an explicit carve-out protects the artist.
NFT rights cover the creation of non-fungible tokens linked to your recordings, digital collectibles, limited edition audio files, or access tokens. Both the master recording and the underlying composition must be licenced for an NFT involving your music. Labels with broad rights language may argue existing grants cover NFT creation.
NFT releases can generate significant income and create direct artist-to-fan connections. A label claiming pre-existing rights cover NFTs can block you from releasing your own NFT projects or demand a share of the revenue.
The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.
The drafting language and the negotiation moves for this clause are part of the workspace.
You have read what the clause means and where the risk sits. The rest is the side-by-side of how it reads when it is against you and when it is not, plus the specific moves that get it there.