Monday, December 5, 2022
HomeNFTYuga Labs allegedly mislead BAYC buyers with bogus NFT IP rights: Report

Yuga Labs allegedly mislead BAYC buyers with bogus NFT IP rights: Report

Galaxy Digital Research suggests that people buy NFTs with full IP rights to the tokens, however that might not always be the same for BAYC buyers.

The most well-known NFT collection, BAYC (Bored Ape Yacht Club) has gained popularity in recent years after many famous people, such as the musician Snoop Dogg, Justin Bieber etc expressed an interest in them. Galaxy Digital, an investment company run by Mike Novogratz, published a report on the NFT market on August 19. The business sought to examine NFT licensing in the sector and dispel myths about it. 

The report emphasised the increased interest in NFTs and stated that the sector probably has a “promising future.” However, it made the point that most of the time, when customers acquire NFTs, they don’t get the proper IP rights. The report finds:

“We examined the licences for the most popular NFT collections, and in all but one instance, the issuers provided the NFT buyer with merely a use licence.”

According to the investigation done by Galaxy Digital, the necessary commercial rights to BAYC and other collections by Yuga Labs are reportedly not transferred to buyers of the NFTs. This is due to a purported inconsistency in Yuga Labs’ ownership conditions.

Yuga Labs claims that when one acquires a BAYC NFT, they “fully” own the underlying Bored Ape. However, the report asserts that there is absolutely no mechanism for the transfer of intellectual property (IP) rights to the buyer of the BAYC. This suggests that the buyer reportedly does not have any intellectual property rights to the BAYC in a legal sense. Other collections, such as MAYC and BAKC, experience the same problem. Evidently, Ripps produced a copy of the BAYC collection that he called RR/BAYC. This, in Ripps’ opinion, was an attempt to demonstrate that BAYC owners do not actually possess legitimate copyrights to their NFTs.

Galaxy Digital mentioned another NFT collection that has comparable copyright difficulties, in addition to Yuga Labs and the BAYC collection. The Moonbirds NFT collection belonged to the PROOF Collective. The licence arrangement with the Moonbirds and the PROOF Collective’s public attitude are in conflict, the report claims. According to the report, Yuga Labs and PROOF Collective, the NFT issuers in this situation, are the true owners of the rare attribute. It continues, “It’s not enough to just hold the digital token entitling you to a licence, for the licence might change at any time. To actually own that uncommon attribute.”

Nevertheless, the study notes that the World of Women (WoW) collection stands out from the rest of the pack. It emphasised the fact that it is the only collection that gives NFT buyers full IP rights.

Read more:

 

Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

two × one =

- Advertisment -

Most Popular