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I think the idea is that a lot of these come with publishing contracts built in so the artist receives a royalty if the token changes hands and the current owner has the rights to license the art.

For example if I sell you a song as an nft you could then license the song to Budweiser to use in a commercial and we both get paid. Think about how difficult this would be to arrange without the nft to handle the contract.



Song publishing seems like a bad example here — it’s insanely easy to make that arrangement in practice because there is an existing real world payment / licensing structure for exactly that transaction.


> I think the idea is that a lot of these come with publishing contracts built in so the artist receives a royalty if the token changes hands and the current owner has the rights to license the art.

I've not seen a single NFT that comes with an associated copyright license to the underlying work.

Additionally, the artist only receives a royalty if the token is sold on these marketplaces that enforce the royalty. There's no such thing preventing a private sale that doesn't pay it.


Isn't it possible to actually code it into the ethereum contract to send eth to a wallet when it's traded?


In theory. I've not seen a contract that does that, however.

This doesn't mean they couldn't exist, just that (in my current understanding) it's not part of the ERC-721 spec.


How would that matter if it's traded off chain?




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