Digital Rights and Their Use in a Smart Contract

Although the term “digital rights” and their kinds are now stipulated in the Civil Code of the Russian Federation and other federal laws, the concept of a smart contract and its legal issues arising with its use are not reflected in the current legislation. In our view, it is a drawback since digital rights are transferred from the one to another person in an information system with the use of a smart contract. Smart contract is deemed to be a contract which is concluded and performed in a special information system being decentralized and distributed (like blockchain) and enabling making transactions of digital rights. The peculiarities of a smart contract enhance stability of civil turnover and promote due performance of obligations. It is argued to be possible to transit digital rights in virtue of law on such lawful grounds as a court decision, hereditary succession in case of presenting a certificate of inheritance, where an operator of an information system makes an appropriate record in accordance with the rules of such information system. The lack of legal regulation of a smart contract restrains the broader use of digital rights as well as implementation of accrual of digital rights on the basis of decisions of law enforcement bodies.

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