Provide a version of NFT that allow users to freely transfer intellectual property along with the NFT.
NFT has allowed creators and collectors a new way of transferring the ownership of a digital asset. You no longer require a paper trail to assertain the current ownership and the authenticity of a digital work that you may be interested in purchasing.
However, the debate on how IP rights should transfer with NFT, has been increasing. Different NFT platforms and collections, offer IP rights differently.
– Most NFT, does not transfer any IP rights to the NFT holder.
– Dapper Labs, a pioneer in the NFT space, with CryptoKitties, provide the NFT holder, the right to commercialize the NFT upto $100,000 annually, through their NFT License. However, this restriction is not easily enforceable.
– Bored Ape Yacht Club, the massively popular NFT collection, provides the Ape holders full commercial rights to it.
– Similarly, the NFT community does not seem to agree on how IP rights should transfer along with NFT. This has led to many high valued purchases, by collectors who were under the impression that the NFT carries IP rights.
Furthermore, NFTs inherently does not provide a method of verifying the transfer of intellectual rights.
HyperNFT provides a legally enforceable way of transferring your commercial rights along with an NFT. It uses the same ERC-721 standard and adds a document outlining the commercial rights transfer as metadata. The document is stored in the Interplanetary File System (IPFS), which outlines the following 2 items.
– Creator of the NFT guarantees that they are the original creator of the creative OR that they hold all relevant commercial rights to the creation.
– Creator of the NFT transfers all commercial rights to the holder of the NFT.
This simple solution, allows the transfer of commercial rights in a clear and enforceable manner. It also creates a distinction between classic NFTs and HyperNFT, that allows the transfer of commercial rights along with the NFT.
This distinction also makes it easier for buyers to understand that they purchasing an NFT with commercial rights.