Moonbirds Copyright Controversy Exposes Flaws in Crypto's IP Obsession

The Moonbirds copyright controversy highlights the complexities and misunderstandings surrounding intellectual property (IP) in the world of NFTs and crypto.

Yuga Labs' announcement to bestow exclusive commercial rights onto holders of Moonbirds NFTs sparked controversy due to the collection's previous designation under Creative Commons 0 (CC0), releasing the artwork into the public domain. This move raised questions about the legal validity of Yuga's plan and whether it could override the CC0 status.

Twitter users, including copyright attorney Alfred Steiner, argued that Moonbirds were now in the public domain, making Yuga's attempt to attach commercial rights legally invalid. Yuga later adjusted its position, stating that commercial rights would only apply to new, 3D versions of Moonbirds artwork, similar to the rights enjoyed by Bored Ape Yacht Club (BAYC) holders.

This situation underscores the distinction between copyright and trademark. Copyright protects the content of a work, such as the plot of a book or the characteristics of a painting. Yuga's assertion that each individual NFT possesses its own copyright suggests that NFT holders could leverage these copyrights for commercial purposes.

Legal experts like Brian Frye emphasize that both copyright and trademark considerations are essential in understanding NFT IP issues. While copyright protects the content of individual NFTs, trademarks safeguard brand identities and associated commercial rights. Yuga's decision to grant commercial rights to NFT holders may involve both copyright and trademark elements, highlighting the complexity of navigating IP within the crypto space.

The Moonbirds controversy underscores the need for clearer legal frameworks and deeper understanding of IP concepts within the evolving landscape of NFTs and crypto.

#Web3.0 #NFT #Blockchain #Crypto #Cryptocurrency #AI #Metaverse #OpenSea #AR