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A while back I made a small NFT collection with my favorite CS illustrations:

It was an experiment that didn’t do much commercially, but we learned a lot from it.

Seems weird to make unique someone else’s work. How does that work from an IP standpoint?

It doesn't.

I re-drew the artwork based on the originals from the publications, it’s not copy-paste images.

This, plus the fact that the original source is cited, makes it work.