NFTS AS DECENTRALIZED INTELLECTUAL PROPERTY

This Article is the first to elaborate a theory of decentralized intellec-tual property (De-IP) to explain the phenomenon of NFTs. This theory of De-IP provides a compelling new understanding of NFTs. Like the current movement to adopt decentralized finance (`DeFi'), De-IP utilizes block -chain technology to provide an alternative, decentralized way to engage in activities traditionally governed by a highly centralized regulatory system, typically involving the U.S. government and dominant industry intermedi-aries who operate as de facto gatekeepers. The primary vehicle for De-IP is a new technology called the non-fungible token (`NFT'), which consists of a computer program called a smart-contract that authenticates a unique virtual token on blockchain and identifies some other subject matter, such as a copyrighted artwork, whose use is governed by a license setting forth the rights the NFT owner receives. Through a combination of virtual tokens (which are new intellectual property in their own right), code, licenses, practices, and norms, NFTs are providing a viable, decentralized alterna-tive to the copyright system-an alternative that does not eliminate the cop-yright system, but instead, makes it more responsive to what artists and people want. Although critics may object that De-IP does not adequately consider the public interest in how the copyright system should be re-formed, both republican theory of deliberation and the ongoing public de-bate about copyright on social media and in decentralized autonomous or-ganizations (`DAOs') allay such concerns. Indeed, the current decentralized debate about NFTs and copyright law may be not only better for democratic deliberation but also more responsive to the needs of indi-vidual authors and the public. Everyone can participate.