Ownership recognition of Non-fungible tokens (NFTs) has become a critical issue that raises many other legal problems and copyright vulnerabilities. A venture capital firm, Andreessen Horowitz, also known as a16z, has appeared with a solid-looking solution to this problem via providing free licenses to creators.
According to a Wednesday blog post written by the firm’s general counsel Miles Jennings and general partner Chris Dixon, the company is all set to enable a free NFT licensing framework. It provides six types of lawyer-vetted licenses creators can use to control ownership of an artwork. The firm comes to this move with a primary goal to unleash the ‘economic potential’ of the digital artwork sector.
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Can’t Be Evil
The license set titled “Can’t Be Evil” will facilitate NFT creators to give them control over their digital work or tokens. Likewise, the license inclusion will enable users to protect Intellectual property (IP) rights and the ability to transfer them.
The blogpost added;
“Can’t Be Evil” licenses explicitly outline the buyer’s rights regarding the artwork for their NFTs, including whether these rights are exclusive (only the buyer gets to choose how their NFT artwork is used, and the creator relinquishes all licensed rights); whether they include commercial rights (rights that allow the buyer to use their NFT for business purposes); and whether they allow the buyer to modify, adapt, and create derivatives from their purchased artwork (like changing the appearance of an artwork or using it in a different context).
NFT Licencing Framework Comply With GOV. Requirements
In addition, the licensing infrastructure of processing meets the regulatory requirements as the firm engaged with lawyers before designing licenses that also include a baseline of rights for creators that are irrevocable and enforceable.
The company, with this move, aims to support the NFT creators and community in order to utilize the NFT sector’s potential to profit the economy where creators have “a clear understanding of the IP framework in which they can work.”
The authors noted;
By making the licenses easy (and free) to incorporate we hope to democratize access to high-quality licenses and encourage standardization across the web3 industry. Greater adoption could lead to incredible benefits for creators, owners, and the NFT ecosystem as a whole.
Furthermore, the company’s representatives urged that unstoppable developments and innovations will change the licensing needs, and it might not be the right fit for some projects. The company sees this move as an initial step to once start the licensing ecosystem and will continue “encouraging greater standardization as the space grows.”
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a16z has stepped up to introduce NFT free licensing framework after a part of issuers opt for the service of Creative Commons. It is a non-profit firm providing copyright licenses to content makers so they can share their work.
Featured image from Pixabay and chart from TradingView.com