NFT IPs are a topic of discussion. In tackling the IP dilemma, Truth Labs has taken a new route. And it decided to provide each holder of the 187 batch NFTs with custom contracts. This move is likely to avoid regulatory issues while maximizing value for owners.
What does Truth Labs’ deal with its owners consist of?
Truth Labs has already struck two unique deals with its owners. The first concerns King Kong, who has become an official partner of the Goblintown group. According to the terms of this partnership, he will receive a 1% royalty from past and future sales. This guarantees him a payout of 40-50 ETH.
The second unique contract was negotiated with Ding Ding. It focuses on producing real NFT-inspired goods, The Waldragon. In this arrangement, Ding Ding is described as an ‘equal partner’ in the revenue derived from sales of goods.
As the NFT market grapples with uncertainty, the question of the value and benefit of owning an NFT becomes more relevant. Some, like the Pudgy Penguins, have been successful in leveraging intellectual property for their projects, striking licensing deals for physical games and children’s books. NFT Group Deadfellas has adopted a similar strategy, partnering with organizations like the Chicago Bulls, DraftKings, and Wrangler.
What are the other forms of IP addresses?
In contrast, the Proof Collective converted its Moonbirds to a CC0 license last August, causing an uproar among its holders. Some felt the decision was center bait, as it happened long after people had originally purchased NFTs.
Yuga Labs followed suit, giving CryptoPunks holders the freedom to use their NFT IP through CC0 licenses. This makes intellectual property public property and available for any purpose, including commercial use.
While CC0 licenses give their holders great freedom, they also allow anyone to use the same IP address. According to some Web3 commenters, it defeats the purpose of owning a unique piece of digital art in the first place.
By crafting individual contracts for each holder of the 187 NFTs in the pool, Truth Labs is navigating a compromise. Moreover, it allows them to avoid SEC scrutiny while preserving the uniqueness and value of their NFTs.
The company aims to take advantage of Web3’s IP to weather the long encryption winter. This unique approach to NFT IP management, while still in its infancy, could represent a new way forward for Web3 projects in a rapidly evolving landscape.