NFTs have changed our concept of ownership in the last couple of years. They have allowed the tokenization of all sorts of content and ownership by virtually anyone through blockchain technology. While all this might seem straightforward, it’s actually a bit more complex than you might think, as owning an NFT doesn't necessarily mean you reserve the right to use it. Yes, you heard that right! Commercial rights of NFTs determine how you can use the non-fungible tokens you've acquired. With that in mind, let's dive deeper into commercial and private rights and the different ways they influence the digital NFTs world.
If we take you back to the good old-fashioned world of commercial rights, we see that commercial rights are put in place to protect digital art creators. Commercial rights of NFTs acknowledge that particular art is the creator's intellectual property and gives the creator control over how their property can be used. While you can interact with the property online, the decision of its use lies with the art creator.
However, when it comes to NFTs, things are a bit different. NFTs thought blockchain technology has made it virtually possible to tokenize and own anything. All in all, we must remember that the ownership of non-fungible tokens is not guaranteed. While having the private keys to an NFT gives you ownership and a stake in its underlying project, the creator still has rights over how people use the content.
To better understand what we are talking about here, let's look at the different commercial and private rights options for NFTs. That will help you to understand how commercial rights affect the use of NFTs.
The NFT collection adopts a conservative licensing. In that, it heavily restricts the community from using the underlying tokens. Despite buying the NFT, users are still limited to their usage of the NFT.
Such a project grants exclusive commercial rights to all NFT holders from the start. That means the person who owns the underlying token can use the NFTs commercially.
A CC0 (creative commons zero - no rights reserved) artwork is one in which the creator has maintained no intellectual property rights. NFT initiatives that take the CC0 attitude allow anyone - not just token holders but the general public - to exploit the project's intellectual property freely.
NFTs have the potential to infinitely be helpful in a wide range of industries. NFTs are not just a new fad in the market that celebrities can spend money on. They also have a practical utility that complements their collectability. Beyond pixelated art, NFTs have limitless applications. Let's explore some of the possible utilities of NFTs.
NFTs can come in handy in sectors where property owner needs to be tracked and proven. Instead of engaging in time-consuming procedures of hunting down relevant paperwork to verify ownership of something, NFTs can be used to provide a perfect record of the entire history of ownership of particular items.
Wouldn't it be a perfect world if house title deeds existed as NFTs? Think about it, instead of regenerating title deeds every time the house changes ownership; the NFT would automatically log all changes into its history, making it easy to close deals. Also, that means better security as the chances of anyone forging house ownership will reduce as you can't alter or interfere with the NFT.
Digital Luxury and Fashion Items have also found utility in several exciting and expanding metaverse initiatives. CloneX enables 3D file ownership together with completely customizable digital NFT avatars. There is a chance that exact apparel and accessory items will be created in real life.
Another important application for NFTs will be the provision of exclusive access to organizations such as DAOs. If you have an NFT that grants access to a DAO, you will be given exclusive rights to participate in the governance of a platform, project, or dapp. Furthermore, NFTs can be used as an indicator or proof that someone is a community member who has won a competition or is dedicated to a specific business.