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Buyers May Have Been Misled By NFTs From BAYC & More

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It seems that Bored Ape Yacht Club and Moonbirds NFT purchasers have been misled on the IP rights, according to Galaxy Digital blockchain services. It has been researched that they are still not meeting the requirements when assigning IP rights to holders. Particularly, it is two collections in their “A Survey of NFT Licences: Facts and Fictions’, which was released yesterday.

How Were Buyers Misled?

According to the research, some NFT issuers including Yuga Labs have not properly assigned the intellectual property rights for the content they sell. As of now, only World of Women among the top 25 NFT issuers have attempted to confer intellectual property rights to the purchasers of their NFTs.

The issue arises from Creative Commons License, which has been the main subject in recent times. While this restricts licenses of NFT projects, moving the IP to a public domain removes all ownership of the NFT legally. When the creative use is open to anyone, NFT holders will have a tough time defending their ownership rights.

As unfortunate as it is, without improvements in the on-chain representation and transfer of IP rights from issuers to token holders, then everyone’s ideas and visions of the future of Web3 may not be possible.

How Do We Fix This?

A lot of NFT projects have navigated this issue by being completely transparent with their buyers so to not mislead them in any way.

For instance, Doodles NFT has taken a unique approach in addressing this issue by allowing users to make derivative projects while also making a limited amount of revenue. This way, the original artwork will not be modified.

VeeFriends by Gary Vaynerchuk only allows users to use their NFTs for personal use only and that means they are not permitted to make their own products through it.

Some projects also adopted the Creative Common Zero License. This simply means that anyone is able to use the artwork for derivative projects to follow this license. Just recently, MoonBirds announced that they plan to make this change to their NFT collection. This of course, infuriated the current holders of MoonBirds whilst the non holders who are yet to be holders would be excited.

VeeFriends NFTGetting Called Out By Galaxy Digital

Some of the brands, called out Yuga Labs and also MoonBirds. This is all because of the wording that they used in their licensing that misled the buyers. Yuga Labs word it as “When you purchase an NFT, you own the underlying Bored Ape art completely,” Whereas the reality is that Yuga Labs still owns the intellectual property. Galaxy Digital wrote that Yuga Labs “implicitly acknowledges that the NFT holder does not own the art.” For more NFT news, follow NFTeller.

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