โ๏ธ NFT Copyright: Legal Rights & Ownership
Learn what you actually own when you buy an NFT
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0 / 5 completedโ๏ธ Ownership vs. Copyright: The Critical Distinction
Here's the most misunderstood fact about NFTs: When you buy an NFT, you own the tokenโbut you don't automatically own the copyright to the artwork. Think of buying a physical painting: you own the canvas, but the artist retains copyright. You can't make posters, sell merchandise, or create derivatives unless the artist explicitly grants those rights.
NFT projects handle copyright differently. Bored Ape Yacht Club gives full commercial rightsโholders have launched restaurants, clothing brands, even a movie. CryptoPunks (originally) granted zero commercial rightsโjust token ownership. Art Blocks allows commercial use up to $100k/year. Understanding these distinctions is critical before spending tens or hundreds of thousands on an NFT.
๐ Interactive: Copyright Split Visualizer
Select an NFT project to see exactly what rights you own versus what remains with the creator. Understanding this split is essential for commercial ventures or investment decisions.
What You Own
Token Rights
- โNFT Token
- โTransfer Rights
- โDisplay Rights
- โResale Rights
Copyright Owner
Intellectual Property
- โ Commercial Use
- โ Create Derivatives
- โ Sublicense
- โ Exclusive Rights
Full Commercial Rights
License Type
What this means: Launch clothing brand, create restaurant, produce animated series
๐ก This is why BAYC holders can monetize freelyโthey have full IP rights to their specific ape.
Token โ Copyright
The blockchain only proves you own the token. Copyright is separate and must be explicitly transferred.
License Terms Matter
Always read project terms before buying. Rights vary dramaticallyโsome grant full IP, others nothing.
Commercial Plans?
If you plan to monetize (merch, licensing), you need explicit commercial rights in the license.
๐ Real-World Impact
One holder licensed their ape to Universal Music, earning $250k+. Another opened Bored & Hungry restaurant in LA.
Before 2022 rights change, holders creating punk-based art received legal threats. Zero commercial rights meant zero monetization.
$100k cap works for most, but successful projects hit it fast. One artist had to negotiate special licensing after print sales exceeded limit.
๐ก Key Insight
The biggest mistake NFT buyers make is assuming "owning the NFT = owning the rights." Legally, you own a token (blockchain record) and possibly a license (usage rights), but the copyright (intellectual property) remains with the creator unless explicitly transferred. Before spending $50k+ on an NFT for a business venture, read the license terms. If they say "personal use only," your restaurant/brand idea is legally prohibited.