Token-Art System and the New International Art Market: The impacts of NFT technology and the legal aspects involved

Abstract

The international expansion of arts events and the installation of museum franchises in different countries reinforces that the artistic sector has acquired a globalized sense. The online arts market has grown considerably through the influence of social media both for the discovery of new artists and to attract new potential customers. At the same time, technological innovations such as cryptocurrency and blockchain have a high capacity to transform the arts market. And within this scope, two extremely dynamic digital assets are increasingly being used: smart Contracts and NFT - or "nonfungible token". Studies have shown that this technology applied in this market has presented advantages in the authenticity, origin and traceability of art sales. Such transactions, however, have legal effects especially on contracts and property rights. Thus, the present work aims to reflect on the legal implications, especially regarding the management of intellectual property and the adoption of smart contracts in commercial transactions in the international arts market, generated by the impact of NFT technology. The deductive methodology will be used, with theoretical-doctrinal analysis of the information obtained by primary and secondary bibliographic research.