- Summary:
- NFT marketplace, NFTMagic has introduced a licensing system for NFTs. We tell you how this works and why it is important.
NFTMagic has provided a mechanism for NFT holders to exercise greater control over their assets. NFTs have taken the world by storm and have redefined what constitutes a valuable collectible. However, there are grey areas in the legal implications of owning an NFT, including copyright infringement.
The NFT market is still in its infancy and this could be responsible for the limited use cases of NFTs. Currently, NFTs are primarily seen as tradable assets or collectibles worth holding for prestige and bragging rights.
NFTMagic uses a cascade of licenses that enables NFT creators to determine the legal extents to which third parties can use their assets. For instance, depending on preference, creators can attach licenses that allow buyers to alter, transfer or apply commercial use cases.
Notably, all NFT licenses minted on NFTMagic can be upgraded. In this case, upgrading a license means giving the third party greater freedom in using the NFT. Also, only the original issuer can upgrade the licenses. An upgrade means altering the terms of the license use. However, to safeguard buyers’ interests, issuers cannot downgrade licenses. This ensures that buyers are not at a disadvantage if the issuer decides to change their mind.
By introducing the licensing concept to NFTs minted on its platform, NFTMagic has expanded NFT use cases. Additionally, licensing creates a legal safeguard for creatives and ensures that they define the use cases for their works. For instance, an issuer may prevent the commercial use of their NFT through advertisements. Under such circumstances, they can generate extra earnings when they upgrade the license to allow for commercial use.
About NFTMagic
NFTMagic is an NFT Marketplace built on the Ardor blockchain. Content creators using the platform can publish their works and verify their authenticity via blockchain technology. Ardor blockchain is a proof of stake network which supports faster, cheaper, and energy-efficient transactions. NFTMagic does not collect any personal information from its users. The only thing that a user needs for transactions is a blockchain account.
If an NFT fails to attract a buyer, the creator can burn it, thereby totally removing it from the blockchain ecosystem. They can issue the NFT afresh with improved license terms if they feel that it will help them attract sellers.