Why NFTs do not give ownership rights to the holders



Owners of non-fungible tokens (NFTs) have no intellectual property rights to their content, as revealed in a recent report by Galaxy Digital Research. this blow NFT hard-core enthusiasts, who own them or wish to own them

Only a collection of NFTs in the top 25 platforms by market capitalization have attempted to confer IP rights on buyers of digital arts, the report adds.

According to the report, most NFT operators have apparently “misled NFT buyers” about the extent of their rights, and this has faced some backlash from buyers. However, NFT players have come out on defense.

The question of property, both intellectual and real, when discussing an NFT is much more nuanced than it is with physical art and assets, they said.

An NFT is an ownership receipt for the purchaser of unique works of art or concepts. However, in many cases, the original creator must maintain a stake in the final work to maintain its rarity.

The core definition of NFTs is ownership based on smart contracts written on a blockchain. Any digital asset purchased as an NFT gives the owner exclusive rights to the NFT on the blockchain, said Arijit Mukherjee, founder of Yunometa.

“While content creators and digital artists have made millions of dollars from their sales, NFTs can sometimes have ownership conflicts with popular culture and art forms,” ​​he added.

The report mentioned that without improvements in on-chain representation and transfer of intellectual property rights from NFT issuers to NFT token holders, the expansive vision of Web3 will remain unheard of.

The report analyzed the main NFT projects, such as the Yuga Labs Bored Ape Yacht Club (BAYC) project, the Gary Vaynerchuk project VeeFriends, women’s worldand the social platforms Decentraland and Sandbox.

Kameshwaran Elangovan, Co-Founder and COO, Guardian LinkHe said that there are shortcomings that any technological transformation has to go through in its adolescence.

We should not be looking at discrete bags of change, but rather a wave front of healthy transformation that impacts the entire spectrum and ecosystem.

Buying NFTs without consulting the previous owner can sometimes lead to situations where buyers may feel they have been ripped off, Yunometa’s Mukherjee said.

NFT holders need to fight for their IP rights, as the industry is in a very nascent stage, but lacks a regulatory framework that could provide them with some relief amid growing adoption.

However, one must understand that NFTs can only represent ownership or possession of the token itself. Art or item purchased as NFT does not give users ownership of the underlying item.

The question of ownership, both intellectual and real, when discussing the most common claim about NFTs is misleading and almost accurate, said Vijay Pravin Maharajan, founder and CEO of bitsCrunch.

“Cryptocurrency enthusiasts commonly claim that NFTs are essentially unique and exist on a blockchain,” he added. A user who has purchased it essentially owns the digital asset. There is only one such token, and users hold it in their crypto wallet, which means ownership.

Owning an NFT does not convey ownership of the rights to storage, copyright or use of the assets. NFTs typically provide links to the asset that is hosted on a different site. The rights and benefits must be clearly mentioned with the property of NFT.