How NFTs Handle Commercial Rights: A Guide for Web3 Users

A report on the rights and ownership of some of the most popular NFTs on the market.

TABLE OF CONTENTS

• Introduction
• Terms and Conditions: Distinguishing Personal Use from Commercial Use (3 categories)
• The Intellectual Property Dilemma: Becoming Global (NFTs and talent management agencies), Who Owns The IP? (Bored Apes/Veefriends)

INTRODUCTION

The expectation of higher prices for so-called blue-chip NFTs has been driving the demand for apes, cats, punks, birds, and many other already expensive tokens in web3. However, these NFTs have little to no proven utility — so far — beyond the verifiable ownership of an image on the blockchain. In this market, price equals popularity, and popularity equates to demand. To maintain their status, the creators of these projects need to work on three fronts:

1. Disincentivize sales of their most popular NFTs on secondary markets (hold, not sell): They need to be aware of what’s on sale, total inventory, and price points. They could intervene and buy out some assets if necessary to keep the market under control. They don’t want the owners of NFTs to cash out. As a reference, 1.7% of…