Yuga Labs to Enable Full Licensing Rights to CryptoPunks Holders
Yuga Labs will transfer the IP rights of CryptoPunk NFTs to its holders, giving them the licensing rights.
In good news, the CryptoPunks holders will now have IP rights. This essentially means that these NFT holders can now use them for a range of other purposes, including merchandising.
Unlocking New Opportunities by Using an NFT
No doubt, this is going to unlock the true potential of owning and NFT. Tiffany and Co’s had recently launched their punk pendants, which was earlier an issue, but not anymore.
This also means that with the sale of the NFT from one owner to another, the IP rights also get transferred. So, after a person has sold the NFT to another, the former does not have any right to use the NFT for other purposes. However, the previous owners can continue to earn profits and benefits from the activities done while they had the possession.
It’s not a Free Pass
Although the owners have earned the IP rights, this does not mean that they have got a hall pass to do anything with their assets. Yuga Labs still upholds the ultimate say in how the NFT owner uses their asset. The owners have to operate within the terms and conditions set forth by Yuga Labs.
The motive is to prevent the execution of any activity that would stain the brand’s reputation or reduce its value in any form. This means using the asset for criminal activities, promoting hate speech, or dealing with unlawful activity. Lastly, Yuga Labs also retains the right to make changes to the contract in accordance with the changes in the industry.
About Yuga Labs
Yuga Labs works in the blockchain space along with the Web3 technology developing NFTs and digital collectibles. It combines Web3 with effective storytelling, creating new experiences, and engaging community. Yuga Labs created the Bored Ape Yacht Club NFT collectibles and has achieved tremendous success with the creation.