We introduce a simple legal contract (see below) that users of the Pastel Network NFT platform can sign in a special ticket on the Pastel Network blockchain, the Bearer Copyright Assignment Ticket. This ticket would only apply to Pastel NFTs that exist with a single, unique “copy” or digital print in existence (i.e., if a user registers an NFT on Pastel and creates a limited edition of 10 digital prints, this would not be associated with the copyright). As the name suggests, this idea is analogous to a bearer bond, an unregistered debt instrument that the owner can redeem like cash, merely by presenting the bond and with no other corroborating materials required.
The basic idea is that the original NFT creator agrees that, if presented with a request by anyone who can prove that they own the NFT (this part is easy to do—the owner of the NFT can sign a message with their Pastel_ID private key, which only the owner of the NFT would know), then they will cause the copyright to be officially assigned to that person or entity making the legal request.
However, the ownership in the copyright would be limited by the same requirement on the next owner: that is, if another party can prove that they are the new owner of the NFT (i.e., the new “bearer”), then they can make a request and get the ownership of the copyright transferred to them. It’s analogous to owning a piece of land that is subject to an easement.
Obviously, this aspect of the system is not decentralized. However, parties can enter in to contracts for anything they want, and the legal system can enforce them to the extent the parties’ claims are valid. In this case, the original creator of the NFT would decide in advance that they are willing to enter into this agreement with the next owner of the NFT, subject only to the next owner accepting the same terms of ownership. This would create an enforceable contract, and even if it ends up requiring litigation and a court ruling to motivate the previous owner to abide by the terms, eventually the current owner of the NFT should be able to persuade a judge and jury that they are owed the copyright.
Below is a sample of what such a contract might look like, which the creator of the NFT would memorialize by signing with their PastelID and writing to the Pastel Blockchain in a standardized way (of course with the ___'s filled in with the correct values):
- That I have maintained the secrecy of the private key associated with my PastelID (the “Private Key”).
- That I am the sole and proper owner of the copyright to all materials appearing in, or used in the creation of, New_NFT (the “Associated Copyrights”).
- That New_NFT has been created on the Pastel Network as a “1 of 1” or unique NFT, so that only one owner can have true 100% legal ownership of New_NFT at a given time.
- That a valid transfer of New_NFT will be deemed to have occured on the Pastel Network, if and only if a valid trade ticket is accepted by the nodes of the Pastel Network to transfer ownership of New_NFT from the PastelID of the previous owner to the PastelID of the new owner (a “Pastel Network Trade Ticket”).
- That the only way this signing process can be effectuated for the transfer of my ownership in New_NFT to another party is with knowledge of my secret Private Key, which I have ensured is secure secret.
- That, if I am presented by any party (the “Bearer”) with valid evidence from the Pastel Blockchain data or from the official public Pastel Network explorer service (located at the URL http://explorer.pastel.network) that the Bearer has legal ownership of New_NFT, which would imply that the Bearer is the new legal owner of *New_NFT (*the “New Owner”), then, to the extent it is within my legal rights to do so, I promise the following:
- That I will make all reasonable efforts to effectuate the transfer of my entire interests in the legal copyrights associated with the contents of New_NFT to New Owner via the official legal process in place in My Jurisdiction (e.g., in the United States, by an official submission to the United States Copyright Office; in France, to Le bureau de la propriété intellectuelle (BDPI)), (“the Transfer”).
- That I will do everything reasonably within my power to ensure a valid submission is made to the appropriate government authorities for purposes of effectuating the Transfer within 2 months of my receipt in writing of notification by New Owner of their request of the Transfer; such request from New Owner must be made in writing, along with all required proof as described above
- That the sole valid method of proof of a valid Transfer is the existence of an accepted trade ticket on the Pastel Network containing the valid PastelID signature of the previous rightful owner of New_NFT and the PastelID signature of New Owner.
- That, to the extent that I am the previous rightful owner of New_NFT, the obligations described herein will be my sole legal responsibility; but, if the previous rightful owner of New_NFT is another party outside of my control, then this party hereby assumes all of the obligations described above as they pertain to future Transfer requests.
- To clarify the preceding point, my agreement to the foregoing is expressly conditioned on the acceptance by New Owner that all legal obligations pertaining to New_NFT will be equally applicable to New Owner ****in whatever legal jurisdiction they reside in at the time when the valid Pastel Network Trade Ticket certifying the transfer of ownership in New_NFT to New Owner is accepted into the Pastel Network blockchain (the “New Jurisdiction”), including but not limited to the following legal obligations:
- That New Owner agrees that they must at all times preserve 100% ownership and control over the copyrights associated with the contents of New_NFT until such time that they transfer it to another new owner on the Pastel Network by means of a new valid Pastel trade ticket that has been accepted into and confirmed by the Pastel blockchain.
- That New Owner stipulates to the foregoing because New Owner agrees that:
- Any premature transfer or hypothecation of the associated copyrights outside the confines of the Pastel Network itself would needlessly complicate the process of transferring the copyrights to New_NFT in the future, which is against the intent of the parties in ensuring a smooth and efficient transfer of legal copyrights to run alongside legal ownership of New_NFT.
- That it is the express goal of all parties involved in this Agreement to avoid civil litigation associated with the Agreement.
- That, to the extent such litigation becomes unavoidable, the intention of all parties has been as clearly described as possible in this Agreement so that a reasonable judge/jury in any litigation can reach a speedy and fair decision on the rightful owner of the legal copyrights associated with New_NFT that will be accepted as binding on all parties. That is, the parties agree to not endlessly tie up New_NFT in repeated appeals in different courts, but will accept the verdict of the first litigation in any valid court of law recognized by the international community.
- That New Owner must include in their Pastel Network Trade Ticket a valid email address (the “New Contact Address”), which New Owner promises to diligently check for correspondence in connection with their fulfillment of their obligations under this Agreement.
- That New Owner has agreed in purchasing New_NFT that New Owner is fully aware of the obligations and expectations required of them by this Agreement, and that such knowledge has been clearly reflected in the valuation determined for New_NFT by New Owner.
- That New Owner will make best efforts to ensure that any future owners of New_NFT other than themselves will comply with the terms of this Agreement, so that future “bearers” that can prove valid ownership of New_NFT can always avail themselves of the rights to the the full legal copyrights associated with the contents of New_NFT.