A Study On The Exhaustion Of Distribution Rights For NFT Digital Works

Non-Fungible Token(NFT)is a unit of data created by a smart contract relying on blockchain technology as a tool to identify the source of a specific digital asset.The emergence of the NFT digital works trading model has changed the way digital works are distributed and utilized in the traditional online environment,but also raises the question of copyright law as to whether the dissemination of NFT digital works is controlled by the right of distribution and therefore subject to exhaustion of distribution rights doctrine? The exhaustion of distribution right principle has the function of balancing copyright protection and freedom of action,and it is applied on the basis that the interests of the copyright owner have been adequately protected.Based on the technical features of blockchain,the transfer of NFT digital works does not need to be achieved through copying,which ensures that copyright owners can obtain sufficient economic rewards by making NFT digital works available to the public,and therefore,it is justified to apply this principle to the trading of NFT digital works.However,the unclear boundary between the right of distribution and the right of information network dissemination,as well as the lack of understanding of the core element of the act of distribution-the "tangible carrier" element-have created obstacles to the application of the principle of exhaustion of the right of distribution to the trading of NFT digital works.The analysis reveals that the doctrinal debate on the core element of distribution is meaningless;the "tangible carrier" element should be affirmed as the core element of distribution,the essence of which is that by emphasizing the "fixity" of the distributed work,the copyright owner can control the work with the right of distribution.The essence of this element is that by emphasizing the "fixity" of the distributed work,the copyright owner can control the number of copies of the work by means of the right of distribution,in line with the principle of exhaustion of the right of distribution,to ensure that the copyright owner is compensated and at the same time does not hinder the subsequent trading of the work,to ensure the normal circulation of the work and to maintain the safety of trading.NFT can be seen as a technical tool for curing digital works,serving the same purpose as the physical world’s tangible carriers for curing and specifying works.NFT digital works are similar to works attached to tangible carriers and are characterized by specificity.By interpreting the provisions of the Copyright Law on the right of distribution and taking into account the characteristics of trading in NFT digital works,it can be concluded that the essence of trading in NFT digital works is the sale of NFT digital works as a commodity;the act of placing NFT digital works on the trading platform by the right holder satisfies the reasonable demand of the public for NFT digital works;and NFT digital works meet the requirement of "original or copy of the work" under the right of distribution due to their specificity.Therefore,the act of uploading NFT digital works to a trading platform for purchase by users constitutes an act of distribution within the meaning of copyright law,and the principle of exhaustion of distribution rights can be applied to the trading of NFT digital works.