New Delhi, Aug 23 : The non-fungible tokens (NFTs) owners have no intellectual property rights of their content, and only one collection of NFTs in the top 25 platforms according to market capitalisation has tried to grant intellectual property rights buyers of digital art, according to an investigation.The majority of NFT operators “appear to have been misled by NFT buyers” about the scope of their rights.
The Creative Commons license, seen as a way to overcome the licenses that are restrictive utilized by a majority of projects “renders NFT ownership obsolete from an legal standpoint since it shifts intellectual property completely into the public domain, rendering it difficult for NFT holders to defend their rights as owners in legal proceedings,” according to the report from Galaxy Digital Research.
The report stated that if there aren’t improvements in the representation of on-chain data as well as the transfer of intellectual property rights of NFT issuers to NFT token holders, the vast vision of Web3 will not be realized.
The report examined the most important NFT projects, such as the Yuga Labs project Bored Ape Yacht Club (BAYC), Gary Vaynerchuk’s VeeFriends as well as World of Women, along with social networks Decentraland as well as Sandbox.
It was discovered that only the “World of Women’ (WoW) NFT collection is distinct from the other top 25 NFT projects because it is the only one to transfer all IP rights to NFT holders.
“World of Women” tries to achieve this by introducing of an original copyright assignment agreement.
“Under this agreement for the assignment of copyright, WoW seeks to develop an organizational arrangement in where the copyright of each WoW NFT runs with the NFT and that the person who owns the NFT has the copyright,” the report said.
NFT holders must be fighting for their IP rights.
“As NFTs are in their infancy and are still in their infancy, it is crucial that the NFT community to start developing a framework to properly grant IP rights to the users prior to the mass adoption phase,” the findings showed.
na/
