NFTs raise challenges from an intellectual property (IP) perspective, as the cryptographic token recorded on the blockchain is distinct from any IP rights in the underlying linked asset. An NFT alone therefore does not create or transfer any rights in the linked asset. NFT purchasers thus will not inherently have a right to freely use the linked IP protected works but will require authorisation from the relevant right holder.
IP rights to an underlying asset can be conveyed through separate license agreements, often individually negotiated between buyer and seller, included in platforms’ Terms of Service (ToS) or coded in the NFT metadata. Existing licensing approaches are however inadequate in fully addressing the specific requirements and complexities of DAFNE+.
DAFNE+ Licensing Choices
Creative Commons (CC) CCPL 4.0 public license framework was identified and implemented during the first platform release, as an initial model to swiftly and easily address the legal issues identified in NFT licensing alongside solving the problems of custom licensing.
As Creative Commons puts pressure on the envisioned DAFNE+ business model of executing licenses through NFTs, novel theoretical frameworks were explored and evaluated for a potential transition at a successive stage.
The Token Bound license was identified as a promising new development. The license, developed by IC3 and COALA to specifically address NFT licensing challenges, utilises a ‘’public conditional’’ model to allow for a transfer of rights along with the NFT. The license applies to the public at large, but its enjoyment is conditional on ownership of the associated NFT to the licensed material.
The application of the licensing framework to the DAFNE+ environment, business model and Use-cases was explored in-depth, evaluating potential challenges and opportunities.
In a further post we will talk about how we have implemented these licenses technically.