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โš–๏ธ NFT Copyright: Legal Rights & Ownership

Learn what you actually own when you buy an NFT

โš–๏ธ Ownership vs. Copyright: The Critical Distinction

Here's the most misunderstood fact about NFTs: When you buy an NFT, you own the tokenโ€”but 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 rightsโ€”holders have launched restaurants, clothing brands, even a movie. CryptoPunks (originally) granted zero commercial rightsโ€”just 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.

๐Ÿ” 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.

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What You Own

Token Rights

  • โœ“NFT Token
  • โœ“Transfer Rights
  • โœ“Display Rights
  • โœ“Resale Rights
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Copyright Owner

Intellectual Property

  • โœ…Commercial Use
  • โœ…Create Derivatives
  • โœ…Sublicense
  • โœ…Exclusive Rights
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Full Commercial Rights

License Type

What this means: Launch clothing brand, create restaurant, produce animated series

๐Ÿ’ก This is why BAYC holders can monetize freelyโ€”they have full IP rights to their specific ape.

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Token โ‰  Copyright

The blockchain only proves you own the token. Copyright is separate and must be explicitly transferred.

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License Terms Matter

Always read project terms before buying. Rights vary dramaticallyโ€”some grant full IP, others nothing.

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Commercial Plans?

If you plan to monetize (merch, licensing), you need explicit commercial rights in the license.

๐Ÿ“Š Real-World Impact

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BAYC Success Story

One holder licensed their ape to Universal Music, earning $250k+. Another opened Bored & Hungry restaurant in LA.

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CryptoPunks Cease & Desist

Before 2022 rights change, holders creating punk-based art received legal threats. Zero commercial rights meant zero monetization.

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Art Blocks Revenue Cap

$100k cap works for most, but successful projects hit it fast. One artist had to negotiate special licensing after print sales exceeded limit.

๐Ÿ’ก 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.

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