- As reported yesterday, Yuga Labs published the new 2022 license for owners of CryptoPunks, the now legendary NFT collection whose intellectual property Yuga Labs acquired from Larva Labs earlier this year.
- We reviewed the terms of the CryptoPunks 2022 license in a prior post, click here.
- Given the CryptoPunks position as perhaps the most prestigious NFT collection, the so-called Mona Lisa of NFTs, the adoption of this 2022 license is the most significant development for decentralized collaboration or what I call De-Collab, which may shape the future of creative production. [My essay on De-Collab.]
- To get a sense why, just imagine Walt Disney Company licensed all of its cartoon characters in NFTs and allowed the owners of the NFTs to commercialize the characters, including making derivative works from them. Crazy idea, right? Disney would never do it. But Web3 companies are doing it right now.
- De-Collab licenses are a part of a larger movement to create a decentralized IP system or what I call De-IP. [My article on De-IP.]
- Today, I want to compare the CryptoPunks 2022 license to the Bored Ape Yacht Club license (which was released in April 2021).
- As shown in the Figure below, the CryptoPunks 2022 license includes far more express provisions entitling the owners to: (1) an exclusive license, including the right to bring infringement lawsuits, (2) full IP commercialization rights, (3) sublicensable, meaning the owners can license their rights to third parties (such as an entity to monetize their characters for them), (4) right to register a trademark based on actual use of their characters, and (5) utility benefits.
- In practice, Bored Ape owners do receive utility benefits from Yuga Labs as well. But there’s no exclusive license or right to bring infringement claims, no sublicensable power, and no right to register a trademark, at least not in the express terms of the Bored Ape license.
- The new CryptoPunks 2022 license does have some new restrictions: no use of CryptoPunks for hate speech–“that expresses hate or encourages violence towards a person or group based on membership in a protected class, such as race, religion, gender, orientation, or disability.”
- Also, owners agree to individual arbitration for any disputes with Yuga Labs. No class actions.