- Galaxy Digital’s research shows popular NFTs like BAYC and Moonbirds have misguided their purchasers on IP rights.
- As per the reports, Yuga Labs misled NFT purchasers regarding the intellectual property rights for the content they auction.
- Galaxy Digital emphasizes Creative Commons license issue is certainly an area of significant concern.
Digital asset and blockchain leader Galaxy Digital recently shared some data in accordance with the research conducted on the buyers’ IP rights surrounding NFT ownerships. As per the research by Galaxy Digital, NFTs like Moonbirds and Bored Ape Yacht Club have deluded their purchasers on IP rights.
The research was primarily focused on two giants in the NFT space, Moonbirds and BAYC, and revealed that they have wrongly marketed the IP rights to purchasers. Apart from just these two, the research concluded that a vast share of NFTs in the market had conveyed zero intellectual property ownership to the purchasers.
Galaxy Digital’s report also addresses Yuga Labs mentioning that it deluded NFT buyers too in relation to the intellectual property rights for the content they are selling. As per the research associated with the BAYC, the Yuga Labs’ license addresses that when a user buys an NFT, he/she owns the underlying Bored Art completely.
In addition to this, it should be noted that the report mentions the fact that Yuga Labs unreservedly acknowledges that the NFT holder doesn’t own any art. What’s more, to be laid an emphasis on is the piece of news that Yuga Labs released extensive IP licensing agreements for Meebits and CryptoPunks.
Well, these agreements are here to contribute to more clarity on the rights of the NFT holders.
With Moonbirds in focus, the 6th most valuable NFT collection advocates a more striking case of misleading advertising based on inconsistencies between the Moonbirds license agreement and its public statements.
As revealed in the report, only one out of the top 25 NFT collections by market capitalization even makes an effort to confer intellectual property rights to the buyers of their NFTs, and it is World of Women.
There is certainly no denying that the Creative Commons license issue is rising as a primary concern. The major reason behind it is the removal of NFT ownership from a legal perspective as it shifts intellectual property into the public domain. This will lead to a situation where it becomes nearly impossible for the NFT holders to defend their ownership rights in court.