Intellectual property (IP) refers to creative works that are protected by law. NFT creators can use different licenses to protect their IP and outline how their artwork can and cannot be used by holders. camlearnscrypto breaks it down.
will automatically execute the transfer of ownership, including any rules applicable to the NFT like terms of purchase or resale opportunities. This often means that when an NFT is traded, a license that informs collectors about what they can and can’t do with their new asset goes along with it.
Whether or not a token you purchase has these defined outright, as an NFT owner, you should familiarize yourself with different types of licensing designations:Some NFT creators don’t explicitly outline an intellectual property license. According to Goldman, not specifying an IP license operates as a personal license by default.
In some commercial licensing structures, the buyer must pay royalties to the original creator of the NFT. This is often a percentage amount established by the original creator, usually calculated per sale. A royalty-free license bypasses those requirements.that provides buyers with a choice of how much they want to contribute to the original NFT project. The announcement drew criticism, with some arguing that the structure would hurt NFT artists.
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