Blockchain in the supply chain
What do young digital artists, Tom Brady, Doja Cat, and Foley and Lardner LLP have in common? They are all becoming popular. NFTs.
Jaiden Stipp is a digital artist, selling his digital work as NFTs at the age of 15.1 One of Stipp’s best-selling NFTs is “Forever Color.” over here, Sold for 20 ETH (ETH is an acronym for Ether, of Cryptop On Ethereum blockchain). At the time, 20 ETHs from Steve Forever Colored sold for $ 30,000, and about a month later, about $ 60,000 was traded.
Tom Brady is launching the NFT platform, an autograph startup that is gaining traction in the popularity of NFTs. over here.2 Tom Brady has teamed up with Hollywood studio Lionsgate and sports betting site DraftKings to launch film and sports-related NFTs.3 In August of this year, Simon Bills announced that she would be releasing her NFT collection for the first time on automotive.4
Doja Cat has launched her “Planet Doja” NFT collection in several tokens. over here. Doja Cat Gold Level NFTs bring Doja Cat Concert Tickets, Platinum Level NFTs VIP Doja Concert Tickets and other benefits, and Diamond Level NFTs VIP Concert Tickets.5 The highest paid NFT experience with the most paid VIP experience For two fans, a doja cat concert sold for $ 188,888.6
Foley and Lardner LLP are one of the first AmLaw 50 law firms to create, mint, list, sell and track NFT secondary markets during the webinars.NFT issuing and selling | Live demonstration and legal analysisPresented by Foley’s lawyers Patrick Daggerti, Laura Ganoza, Jonathan Israel, Andrew Lee, Lewis Lehot, Byron McLean, Eric Sopher, And Catherine Zoo.7
Foley also represented the Jazz NFT program JAZZXR (JAZXR NFT Owners’ Virtual Reality Visit to the Jazz Lock Room Using Virtual Reality Technology)8 And Milwaukee Bucks at the Beginning of NFT (a limited edition of the Bucks 1971 NBA Championship series featuring digital art).9
What is NFT?
NFT is short for “invincible simulation.” Functionality refers to the ability to exchange the same type of item with other objects. For example, cryptocurrencies are fungicides because cryptocurrencies are interchangeable – every penny is the same. NFTs, on the other hand, are invincible because they are unique signals (representing digital assets) that cannot be exchanged with other signals.
When NFT is enabled, NFT is registered on the blockchain. They contain NFTs due to the nature of the blockchain Immutable Throughout a Divided notebook. This means that no one can modify the NFT associated records on their own or make another copy of NFT.
While the media has recently highlighted the use of NFT for art and other high-quality collections, NFTs have other useful applications. For example, users can withdraw NFT to register ownership of any particular property. Users can even download NFTs related to items in the physical world, such as a car or concert ticket. Those NFTs can be used to conduct transactions or to represent those objects in a virtual environment.
Uses for NFTs in the supply chain
NFTs work for supply chain purposes because companies are particularly concerned about protecting the confidential digital data associated with their real estate assets. So companies can use NFTs to represent their physical assets digitally. Some of the ways in which NFTs address supply chain needs are by monitoring products in the supply chain, identifying product origin and verifying ownership and verifying product certifications.
1. Tracking ability
Because NFTs can represent real-world goods, supply chains can use NFT to track a variety of products and materials. In order to monitor the physical world through NFTs, the owner must create a digital representation of the physical object on the blockchain so that the material related transactions can be safely stored and monitored.
2. Product origin and certification
Because NFTs have a consistent record of transactions, third parties can easily verify the origin of the NFT-related physical world product as well as the current and past product owners associated with the NFT. Programmers can design NFTs to return royalty money back to the original NFT creator each time NFT is sold again.
For example, luxury watch brand Brightling has introduced an NFT Passport for every watch, which allows customers to receive a physical watch with a digital clock.10 Customers will be able to use their digital passports to verify the validity of their Britling watch, verify ownership of their Britling watch and transfer ownership of their Britling watch upon resale.11 Brightling attaches its digital passport to its warranty program, which allows homeowners to keep track of their repairs.12 Britling plans to extend its warranty period and increase the functionality of digital passports to increase theft or loss insurance.13
3. Product certificates
The modern consumer is optimistic about product certifications. As a result, giving consumers credentials such as “organic” and “fair trade” can increase sales. To do this, you can submit a third-party certification for product standards or employee safety requirements NFT on the appropriate certificate blockchain, which members of the supply chain will scroll down to until the end user of the supply chain arrives and finally the web link where they can receive the certificate.14
Legal issues related to NFTs
For the most part, governments do not yet control NFTs. Again, the NFT handles a number of legal issues, some of which apply specifically to NFT chain uses, among which are:
- Application and direction. Buyers should pay attention to any standard terms and conditions that apply to NFT sales, not just for NFT itself but for any basic physical or digital assets. If the NFT represents the physical goods sold by the merchant to the buyer, the seller will need to issue contracts and conditions governing issues such as redemption, guarantees, return policy and product defects to avoid any doubts or disagreements over what rights. The buyer has a right to a physical benefit. Merchants typically provide a link to consumer-buyers on terms and conditions related to NFT.
- Intellectual Property Transfer. In the US, copyright holders have special rights to their own work.15 Therefore, the intellectual property rights associated with NFT are not directly related to NFT sales. Instead, the principal owner of the NFT must indicate which intellectual property rights he will transfer to the NFT buyer.
- Royalty fee. U.S. law may not have the right to resell the royalty payment to the original owner, but sellers may establish NFTs with a modern contract to provide automatic royalty to the original owner when reselling.16 One of the challenges may be to sell sellers on a platform other than the one where the NFT is based, and to oppose the efforts of sellers who are trying to cover up royalties.
Although NFTs are still in their infancy, they can provide companies with an opportunity to improve the effectiveness of their supply chains. As companies continue to explore the benefits of NFT and contribute to the adoption of NFTs and other blockchain solutions, the effectiveness of the NFTs in the supply chain is growing.
1 Brunner, Raisa, Young artists are making millions on NFTs. How are you doing? Time (September 7, 2021).
2 Stigrad, Alexandra, Tom Brady NFT Forum Autographs Partners with Lyonget, DraftKings, NY Post (July 21, 2021).
4 Beer, Tommy, Simone Biles is set to release her first NFT collection on Tuesday, investing in the Bombing Market., Forbes (August 31, 2021).
5 Hysong, Samantha, Doja Cat enters NFT gameRolling Stone (September 8, 2021).
6 ID; The rise of the planet Doja, OneOf (Last accessed on September 23, 2021).
7 NFT issuing and selling | Live demonstration and legal analysisFoley and Lardner LLP (September 14, 2021).
8 Foley helped Utah Jazz to launch digital NFT access in the virtual locker room.Foley and Lardner LLP (September 24, 2021).
9 A.D. Foley helped Milwaukee Books when the 1971 Champions League NFT set-up began.Foley and Lardner LLP (June 16, 2021).
10 Herod, Stephen, Bretting will show you how to glorify other luxury brands in the future, Forbes (August 27, 2021).
11 Brittling became the first luxury watchmaker to offer a blockchain-based digital passport, Brittling (October 13, 2020).
14 Ricardo Borgis dos Santos et al. Third-party certification of agri-food supply chain using modern contracts and blockchain tokens, MDPI, Sensors 2021.
15 U.S. Copyright §106
16 Sell royalty rights again, US Copyright Office (Last accessed November 6, 2021).