As we know, with all technology progress comes troubles. What are some of the challenges you are seeing with the NFT community? Do you have any advice on how to overcome these challenges?

There is a huge lack of insight on what a purchaser is receiving when they buy an NFT. Often, the purchaser believes they can do whatever they want with the creative content of the NFT, but they are wrong. The purchaser’s right is limited to what is set out in the license that is attached to the NFT.

To give the NFT purchaser more transparency on its purchase, it’s imperative that the NFT seller clearly state the terms of the license in writing. With a license, the purchaser is now aware of what they can, and cannot, do with the creative content. If you don’t have a license, I’ve created a free open-source license for the NFT community.

It’s also good business practice for an NFT seller to provide a license. It shows that you’re taking into consideration your consumer by providing this clarity on use.

Taking one step back to see the bigger picture, NFTs are an asset on the blockchain. The blockchain is a highly controversial technology, with some countries outright banning cryptocurrency. What should an NFT creator be doing to protect themselves from lawsuits, since they are selling digital assets on the blockchain?

It’s imperative that creators disclaim liability. In the world of blockchain related technologies, there are a lot of unknowns. It’s important that creators make it clear to consumers that they aren’t liable if the NFT technology fails in anyway, including through payment of a Metamask wallet. Creators must place these types of disclaimers in their website’s Terms of Service.
Digital assets on the blockchain also enable automatic royalties placed into your crypto wallet. But, if you’re collecting royalties, you must disclose this in your Terms of Service. Otherwise, you’re facing legal issues.

Let’s talk more about monetization. Why should NFTs be on the radar of artists who are not minting their work as an NFT?
I’m going to loop back to ownership again.
An NFT shows the original owner of the artwork. In the real world, without NFTs, it’s always an issue finding the owner of a copyright. For example, I find a really good digital photograph and want to use it on the cover of my magazine, but I can’t find the owner of the photograph. What happens? I either (i) use the photograph and then risk having the owner sue me for using the photograph without authorization, or (ii) I don’t use the photograph. Now, if that photograph was minted as an NFT, I can easily find the owner and ask for authorization. What results next? I can use this awesome photo and the artist gets paid.

 

 



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