Blockchain and smart contracts: the missing link in copyright licensing?

TLDR

Blockchain’s scarcity, trust, transparency, decentralized records, and smart contracts appear compatible with copyright fundamentals, enabling private ordering but leaving legacy issues unresolved. The article provides a normative analysis of blockchain concepts from a copyright perspective and examines how smart‑contract‑based private ordering differs from core copyright doctrines such as exceptions, exhaustion, formalities, public domain, and fair remuneration. Authors publish works on blockchain to create quasi‑immutable ownership records and encode smart contracts that license use, with remuneration occurring on platforms hosting those contracts. Blockchain is portrayed as a DRM‑like tool that can reduce market friction, improve licensing efficiency, and enhance creator autonomy.

Abstract

This article offers a normative analysis of key blockchain technology concepts from the perspective of copyright law. Some features of blockchain technologies—scarcity, trust, transparency, decentralized public records and smart contracts—seem to make this technology compatible with the fundamentals of copyright. Authors can publish works on blockchain creating a quasi-immutable record of initial ownership, and encode 'smart' contracts to license the use of works. Remuneration may happen on online distribution platforms where the smart contracts reside. In theory, such an automated setup allows for the private ordering of copyright. Blockchain technology, like Digital Rights Management 20 years ago, is thus presented as an opportunity to reduce market friction, and increase both licensing efficiency and the autonomy of creators. Yet, some of the old problems remain. The article examines the differences between new, smart-contract-based private ordering regime and the fundamental components of copyright law, such as exceptions and limitations, the doctrine of exhaustion, restrictions on formalities, the public domain and fair remuneration.