IP
I
February 1, 2022

The Spice May Flow, But The Copyright Doesn’t

What happens when the latest crypto craze, the “greatest movie never made”, and a misunderstanding of copyright law come together? A group of netizens pays €2.6 million for a book worth roughly €30,000, that’s what!

Earlier this month, a collective of pseudo-anonymous sci-fi fans and blockchain enthusiasts calling themselves “SpiceDAO” dropped a ridiculous amount of mostly crowd-sourced money on a copy of a very rare, and very influential book – a tome containing concept art, production ideas, a complete script, and full storyboard for Alejandro Jodorowsky’s big-screen adaptation of Frank Herbert’s 1965 sci-fi novel, Dune. The book was one of about 20 published in 1975 that were passed around Hollywood to try and pique the interest of movie studios with the aim of getting the film green-lit. Unfortunately, its particular vision of a Dune movie was never produced, but the book itself was a sensation among the movie-producing classes. Its style and scope shaped sci-fi cinema for decades, heavily influencing films like Star Wars and Alien. When you consider that its contributors included H.R. Geiger, Salvador Dali and Pink Floyd, you can see why it caused such a stir!

When it was announced that a copy of the book had surfaced, and was going across the block at Christie’s auction house, SpiceDAO (“Spice” for the substance that drives the narrative in Dune, and DAO for “Decentralised Autonomous Organisation”) set about gaining followers and collecting money from them with the aim of purchasing the book. Their ultimate goals were to “collectively explore options to digitally preserve the manuscript, make it accessible to the public for the very first time, and develop creative projects inspired by the vision Jodorowsky set forth.” Reading further into their website, it looks like they intended to digitise the book, create NFTs (Non-Fungible Tokens) from the images, make the digitised book public, burn the physical copy (actually! – you can read about it here), then make adaptations like animated films and comics based on it.

“Purchasing a copy of a book, regardless of how rare, influential or expensive it is, does not give you the right to publish, distribute or make adaptations of it or any of its contents.”

No items found.

The main problem with SpiceDAO’s plan (aside from the fact that the book was digitised and made public years ago – which they could have found out with a cursory Google search) is that, with the notable exception of burning the book (for publicity apparently – I blame YouTube), they can’t legally do any of those things. Purchasing a copy of a book, regardless of how rare, influential or expensive it is, does not give you the right to publish, distribute or make adaptations of it or any of its contents. This would be like someone buying a copy of Lord Of The Rings from Whitcoulls and expecting to be able to have another crack at filming The Trilogy. Purchasing a book gives you the right to read and share (and burn, because that’s a thing apparently) that copy of the book. It does not grant any rights to the book’s content. For that, you would need to acquire (or license) the copyright in the work, which in the case of Dune is held firmly by the Herbert Limited Partnership.

That said, if you’ve been following the various ways people have started using blockchain technology and NFTs, you can see how SpiceDAO might have become a bit confused. One of the proposed uses for NFTs/blockchain is as a way of tracking ownership of artworks and the associated copyrights. For example, a blockchain-based copyright register might see a real-world painting sold along with an NFT recorded on a blockchain. The NFT would contain information about the painting, its artist, its owner and some way of verifying that the painting was the original. When the painting changed hands, so would the NFT, and (because of all the weird and wonderful things blockchain-based smart contracts can do) the artist could automatically receive a cut of the resale price. Importantly, it would also record whether the artwork was being sold with the associated copyright. It would provide a way to track the provenance of artwork, and ensure artists don’t miss out on resale royalties.

Combine that with the way that so many NFT schemes give the NFT owner the IP rights in the NFT’s content or the content it’s attached to (such as the celebrity favourite, Bored Ape Yacht Club), and you can see how someone with more understanding of blockchain and internet hype than IP might have thought turning a book into NFTs created an IP right they could monetise. Unfortunately for SpiceDAO, this is not the case. If only they’d asked their friendly neighbourhood IP and technology lawyers for some advice before spending millions of euros on what is essentially a coffee-table curio. Still, there’s a decent chance that this is all a massive publicity stunt for some as-yet unannounced but possibly crypto- or Dune-adjacent project (in which case “well-played, SpiceDAO”. €2.6 million is a small price to pay for the sort of publicity this is generating!), but that’s yet to be seen. If it is all a huge mistake, maybe they can issue some NFTs commemorating the world’s most expensive bonfire.

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Image credit: Wolfgang Hasselmann

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IP
February 1, 2022

The Spice May Flow, But The Copyright Doesn’t

What happens when the latest crypto craze, the “greatest movie never made”, and a misunderstanding of copyright law come together? A group of netizens pays €2.6 million for a book worth roughly €30,000, that’s what!

Earlier this month, a collective of pseudo-anonymous sci-fi fans and blockchain enthusiasts calling themselves “SpiceDAO” dropped a ridiculous amount of mostly crowd-sourced money on a copy of a very rare, and very influential book – a tome containing concept art, production ideas, a complete script, and full storyboard for Alejandro Jodorowsky’s big-screen adaptation of Frank Herbert’s 1965 sci-fi novel, Dune. The book was one of about 20 published in 1975 that were passed around Hollywood to try and pique the interest of movie studios with the aim of getting the film green-lit. Unfortunately, its particular vision of a Dune movie was never produced, but the book itself was a sensation among the movie-producing classes. Its style and scope shaped sci-fi cinema for decades, heavily influencing films like Star Wars and Alien. When you consider that its contributors included H.R. Geiger, Salvador Dali and Pink Floyd, you can see why it caused such a stir!

When it was announced that a copy of the book had surfaced, and was going across the block at Christie’s auction house, SpiceDAO (“Spice” for the substance that drives the narrative in Dune, and DAO for “Decentralised Autonomous Organisation”) set about gaining followers and collecting money from them with the aim of purchasing the book. Their ultimate goals were to “collectively explore options to digitally preserve the manuscript, make it accessible to the public for the very first time, and develop creative projects inspired by the vision Jodorowsky set forth.” Reading further into their website, it looks like they intended to digitise the book, create NFTs (Non-Fungible Tokens) from the images, make the digitised book public, burn the physical copy (actually! – you can read about it here), then make adaptations like animated films and comics based on it.

“Purchasing a copy of a book, regardless of how rare, influential or expensive it is, does not give you the right to publish, distribute or make adaptations of it or any of its contents.”

No items found.

The main problem with SpiceDAO’s plan (aside from the fact that the book was digitised and made public years ago – which they could have found out with a cursory Google search) is that, with the notable exception of burning the book (for publicity apparently – I blame YouTube), they can’t legally do any of those things. Purchasing a copy of a book, regardless of how rare, influential or expensive it is, does not give you the right to publish, distribute or make adaptations of it or any of its contents. This would be like someone buying a copy of Lord Of The Rings from Whitcoulls and expecting to be able to have another crack at filming The Trilogy. Purchasing a book gives you the right to read and share (and burn, because that’s a thing apparently) that copy of the book. It does not grant any rights to the book’s content. For that, you would need to acquire (or license) the copyright in the work, which in the case of Dune is held firmly by the Herbert Limited Partnership.

That said, if you’ve been following the various ways people have started using blockchain technology and NFTs, you can see how SpiceDAO might have become a bit confused. One of the proposed uses for NFTs/blockchain is as a way of tracking ownership of artworks and the associated copyrights. For example, a blockchain-based copyright register might see a real-world painting sold along with an NFT recorded on a blockchain. The NFT would contain information about the painting, its artist, its owner and some way of verifying that the painting was the original. When the painting changed hands, so would the NFT, and (because of all the weird and wonderful things blockchain-based smart contracts can do) the artist could automatically receive a cut of the resale price. Importantly, it would also record whether the artwork was being sold with the associated copyright. It would provide a way to track the provenance of artwork, and ensure artists don’t miss out on resale royalties.

Combine that with the way that so many NFT schemes give the NFT owner the IP rights in the NFT’s content or the content it’s attached to (such as the celebrity favourite, Bored Ape Yacht Club), and you can see how someone with more understanding of blockchain and internet hype than IP might have thought turning a book into NFTs created an IP right they could monetise. Unfortunately for SpiceDAO, this is not the case. If only they’d asked their friendly neighbourhood IP and technology lawyers for some advice before spending millions of euros on what is essentially a coffee-table curio. Still, there’s a decent chance that this is all a massive publicity stunt for some as-yet unannounced but possibly crypto- or Dune-adjacent project (in which case “well-played, SpiceDAO”. €2.6 million is a small price to pay for the sort of publicity this is generating!), but that’s yet to be seen. If it is all a huge mistake, maybe they can issue some NFTs commemorating the world’s most expensive bonfire.

Useful links:

Image credit: Wolfgang Hasselmann

Article Link

Dowload Resource

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