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Top NFT News: Is BAYC Misleading Investors With Bogus NFT IP Claims?

20-Aug-2022 By: Ashish Sarswat
Top NFT News: Is BAY

NFTs have gained popularity in recent years, with celebrities such as musician Snoop Dogg showing an interest in them. 

And one of the most significant NFT collections in the cryptocurrency space is BAYC (Bored Ape Yacht Club), which recently made fresh headlines due to concerns about the transfer of IP rights.

People buy NFTs with the intention of attaining entire ownership of the tokens. However, according to a new Galaxy Digital Research, that may not be the case most of the time.

Yuga Labs doesn't transfer IP rights to BAYC purchasers

On Friday, Mike Novogratz's investment firm Galaxy Digital published a study report on the NFT industry. The company intended to investigate NFT licensing in the industry and dispel myths about it. The study emphasized the growing interest in NFTs and stated that the industry had a "promising future."

Nonetheless, it stated that in most cases, when customers purchase NFTs, they do not get the required intellectual property rights.

During the research, Galaxy Digital determined that the necessary commercial rights to BAYC and other Yuga Labs collections are reportedly not transferred to NFT buyers. This is due to an apparent conflict in Yuga Labs' ownership terms.

According to Yuga Labs, when one buys a BAYC NFT, one owns the underlying Bored Ape "completely." Notwithstanding, the article asserts that there is no mechanism for the transfer of IP rights to the purchaser of the BAYC. This implies that the purchaser reportedly holds no IP rights to the BAYC in a legal sense. The same problem appears in other collections, such as MAYC and BAKC.

Moonbirds NFTs appear to have the same issue

Furthermore, prominent satirist Ryder Ripps was in the press a few months ago owing to troubles with Yuga Labs. Yuga Labs has sued him for "scamming" customers by selling counterfeit NFTs. Apparently, Ripps made a clone of the BAYC collection, which he named RR/BAYC. This, according to Ripps, was an attempt to demonstrate that BAYC owners do not get legal copyrights on their NFTs.

In addition to Yuga Labs and the BAYC collection, Galaxy Digital identified another NFT collection with comparable copyright concerns. This was the PROOF Collective's Moonbirds NFT collection. The research finds a mismatch between PROOF Collective's public statement and the Moonbirds' license agreement.

The study contends that the NFT issuers—in this case, Yuga Labs and PROOF Collective—are the true proprietors of the rarity feature. To truly own that unique attribute, it's not enough to merely hold the digital token that entitles you to a license, because the permission can be revoked at any time, it adds.

Notwithstanding, the report states that the World of Women (WoW rwf) collection stands out from the crowd. It emphasized that it is the only collection that offers purchasers of NFTs all IP rights.

Read also: Top Cryptocurrency News: Crypto Fear and Greed Index Shows Market Sentiment Remains Fearful

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