Most of the peeps get confused between “Proof of Ownership” and “Intellectual Property”. Proof of ownership is just like an ownership certificate which may transfer to the buyer later on but the intellectual property of NFT is the further reproduction and distribution of NFT. Which still remains under the control of the actual creator of the NFT and the buyer of the NFT cannot break it without the permission of its actual creator. We shall talk about NFTs and intellectual property in this essay. And if you want to know more about the NFTs marketplace stay tuned with us and read the complete article. So, let’s get started!
NFTs and Intellectual Property: What Do You Actually Own?
NFTs are non-fungible tokens, which means it is unique and irreplaceable digital assets including Music, Video, Gaming, Collectibles, Virtual Real Estate, Memes, Sports, Domain Names, and Metaverse Assets. You can develop your own NFTs if you have experience in any of these mentioned disciplines. After the successful creation of an NFT, it can be minted by its actual owner called minting. After minting, these digital assets are stored on a blockchain network in the distributed ledger which is managed by a network of computers and almost impossible to modify. Distributed ledges are also called decentralized databases which are managed by each node within the network. NFTs are backed by the blockchain network and the use of distributed ledger, which makes them more secure, immutable, and transparent.
Everyone is free to create and perform their best in this specific domain. To perform in the NFTs marketplace you need to join platforms (such as OpenSea, Rarible, SuperRare, Nifty Gateway, Foundation, KnownOrigin, Async Art, MakersPlace, AtomicMarket, Binance NFT Marketplace, and others).
Once you join the NFTs marketplace. Now, it's time to create the NFT and then mint it. Right after the successful minting process, you will be the actual owner of that particular NFT. Because when you mint an NFT, it becomes a part of the blockchain because here the unique token would be created associated with that particular NFT. A certificate of ownership that serves as proof of ownership will also be sent to you. If you possess that certificate, you are the legal owner of that particular NFT and no one else can maliciously own, shut, modify, or hold it. And you will be the only one with the authority to sell it to anybody else because you are the actual owner of that NFT.
But when you sell it, the intellectual property of that NFT is still under your control. Like, the buyer has no right to reproduce or distribute that artwork without your permission. For instance;
- Bob (Certificate of Ownership) + (Intellectual Property Rights) => Is the actual owner of the NFT
- Alice => Is the buyer of Bob’s NFT
Alick will buy Bob’s NFT and the certificate of ownership would be transferred to Alice. But the intellectual properties will remain in the hands of Bob because he is the parent creator of that NFT and Alice cannot reproduce or distribute that artwork without Bob's permission.
- Bob (Intellectual Property Rights) => Is the actual owner of the NFT
- Alice(Certificate of Ownership) => Is the owner of Bob’s NFT but has no right to the intellectual property of that NFT
Overall, NFT intellectual property means the reproduction or distribution of specific NFT, which is only under the control of the actual creator of the NFT. Buyers can only buy the ownership certificate of any NFT but cannot purchase the intellectual property of that NFT until the actual creator doesn’t want it. The intellectual property still remains under the control of the parent owner which means he/ she is the only one who can reproduce and distribute that network.