Kazunari Kida expressed concern that artists might misunderstand NFTs as a form of artistic property
The NFT (Non-Fungible Token) boom has gained momentum in the anime and manga industries in recent months, but the practice of attaching art to NFTs has also raised concerns in the art communities. regarding potential scams, money laundering and their environmental impact. .
Kazunari Kida, CEO of Japanese art commissioning platform Skeb, wrote a popular Twitter thread on Monday detailing the potential downsides of NFTs and why Skeb currently has no plans to implement them. First, he explained that while an NFT can prove ownership of the token itself, it is not proof of ownership of the associated artwork, nor the equivalent of copyright. NFTs contain no DRM features and have no way to prevent the work from being copied. A token displays a URL to the artwork, which generally anyone can access.
“It is possible to tokenize from another person’s work without permission. There is no function to prove that the creator of the associated artwork generated the token through legitimate means”, he warned, adding that if a token was generated without authorization, there is no automated process to remove it; creators should take matters into their own hands by filing a copyright infringement or DMCA claim directly with the service provider.
On a practical level, he also noted that it is not easy to implement NFTs for art commissions because they are not equipped with a “smart contract” type function that would automatically generate a token. once an order has been placed. The tax status of NFT sales income is also unclear at this time as Japan’s National Tax Agency has not yet determined whether it should be considered business income or miscellaneous income. If, like cryptocurrency trading, they were to be considered miscellaneous income, they cannot be calculated as part of a company’s net profit or loss. Furthermore, if the NFTs were to be considered intangible assets, then it is possible that they would become subject to consumption tax.
Kida said he was concerned that since the concept of token ownership is entirely new, many creators are using it who have confused it with art ownership or intellectual priority. He said he doesn’t dismiss the concept of NFTs as a whole and thinks it’s perfectly fine to trade them as long as everyone involved understands what they are. As things stand, however, he’s concerned because he’s seen people attempt to explain NFTs as a form of artistic property.
“I’ve seen artists around me attach their work to NFTs while still in a state of confusion as to what they are, and that’s more than anything that worries me,” said- he writes.
He stated that the above-mentioned reasons explain why Skeb will not add NFT-related function in the foreseeable future. He added that he was bombarded with comments on his social media accounts about the addition of the feature, which made him fed up.
He concluded the thread by stating that on a personal level, he had a positive view of crypto as a whole, but felt that the possible downsides in this particular case had not been sufficiently explained. He also specified in a replica that he’s not necessarily saying that NFTs are a scam, and that he encourages others to consider the positives and negatives when doing their own research.
Skeb is used by thousands of Japanese artists, including prominent manga creators and animators. Popular users include SUPER HXEROS manga creator Ryōma Kitada and Hana-Saku Iroha character creator Mel Kishida.
Source: Kazunari Kida’s Twitter Account