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Moonbirds and Bored Apes Yacht Club are fooling holders on False IP Rights: Galaxy Digital Report

According to a Galaxy Digital report published on August 19, well-known NFT collections such as Moonbirds and Bored Apes Yacht Club do not grant their holders exclusive IP (Intellectual Property) rights, as they claim.

The Galaxy Digital report, titled “A Survey of NFT Licenses: Facts & Fictions”, studied the biggest NFT projects in the marketplace as well as the NFT buyers’ rights they get for purchasing them. The firm concluded that very few NFT projects provide exclusive IP rights.

As per the report, Yuga Labs is misleading the buyers. According to the claim by Yuga Labs, the buyers of BAYC will get all the IP rights and also own the NFTs, but there is no such provision for transferring rights to the buyers in its terms and conditions of ownership.

Actually, it means that the buyers will not receive any IP rights after purchasing the NFT. Other projects such as Bored Kennels and Mutant Apes also pop up with a similar issue.

The report stated that Yuga Labs “certainly recognizes that the NFT holder does not, in fact, own the artwork.”

In Moonbirds case, Galaxy found a similar issue of IP rights after its CEO announced the collection would move from commercial licensing to Creative Commons (CCO). 

As it moves to CCO, there will no longer be any copyrights on the NFTs, which means the public can use them openly. The holders of the NFTs criticized this step and said it breaches their exclusive OP rights.

Moreover, the Galaxy report appreciated one collection named World of Women (WoW) as the only project attempting to provide full IP rights to its holders/buyers. This makes WoW the only NFT collection that is doing as they promised.

Moreover, Galaxy pointed out in the report that even though it has the best licensing agreement among the top 25 NFTs by market capitalization, it still had problems in transferring rights after the secondary sales. 

In essence, no NFT projects successfully transfer IP rights to their buyers.

Alex further added and said, this will pose a major problem for the metaverse future and undermines the vision of Web-3.

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