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I don't think they're transferring the copyright but granting IP and commercial rights to the NFT holder. As many of the other commenters are pointing out, this

I don't think they're transferring the copyright but granting IP and commercial rights to the NFT holder. As many of the other commenters are pointing out, this isn't the typical way NFT's work but some are like this. Just like some NFT's don't point to a url but either are stored on chain (cryptopunks) or via content-based addressing (IPFS hash). https://www.businesswire.com/news/home/20220311005470/en/Yuga-Labs-Acquires-CryptoPunks-and-Meebits-from-Larva-Labs-Grants-IP-and-Commercial-Rights-to-Individual-Owners https://www.businesswire.com/news/home/20220311005470/en/Yug...

jameshart 4y ago
The problem is when you buy a second hand bored ape, you don’t have any direct contract with BAYC. They might be able to enforce terms of their original contract on the first party buyer - ‘once you sell the ape you no longer have this license’. But they have no contractual relationship (no ‘privity’) with you. Perhaps possession of the ape entitled you to go to BAYC and get a license contract? That’s great, so long as BAYC 1) continues to honor that agreement (and since you have no contract with them to begin with there’s nothing obliging them to do so) and 2) continues to exist. If they go under and their copyright in their apes gets auctioned off, good luck finding whoever acquired your ape and persuading them that since you own a hash in a blockchain they really have to grant you a license to use that ape.
- lupire 4y ago
  No, BAYC license terms say that whoever owns the NFT has the commercialization rights. Now, all you have to legally is prove that you own the NFT, because theft and computer hacking aren't a legally accepted way to transfer ownership.
  - jameshart 4y ago
    so long as BAYC continue to honor that agreement. And as an owner of a second hand ape you have no legal recourse if they (or their successors, or their receivers during their bankruptcy) decide they no longer want to.
    - throw_nbvc1234 4y ago
      Is this fundamentally different then any other licensing agreement? Presumably if you want more security you'd get a lawyer and sign a contract but it's not something I've ever had to deal with before. If you think the company is going to go bankrupt then you probably wouldn't make the deal to begin with.
      - jameshart 4y ago
        If you have purchased a license from a copyright holder, and then they go bust, and the copyright gets picked up in the ensuing fire sale by someone else, you still have the ability to go to the new rightsholder and say ‘hey, those rights were licensed to me, I plan on continuing to exercise them.’ But it is by no means clear that someone who bought an NFT from someone who bought an NFT from someone who bought an NFT from the original copyright holder has any basis for being able to expect the new holder of that copyright to continue to allow them to exercise the terms of the original license agreement made between the original seller and the original buyer.

jameshart 4y ago

The problem is when you buy a second hand bored ape, you don’t have any direct contract with BAYC. They might be able to enforce terms of their original contract on the first party buyer - ‘once you sell the ape you no longer have this license’. But they have no contractual relationship (no ‘privity’) with you. Perhaps possession of the ape entitled you to go to BAYC and get a license contract? That’s great, so long as BAYC 1) continues to honor that agreement (and since you have no contract with them to begin with there’s nothing obliging them to do so) and 2) continues to exist. If they go under and their copyright in their apes gets auctioned off, good luck finding whoever acquired your ape and persuading them that since you own a hash in a blockchain they really have to grant you a license to use that ape.

lupire 4y ago
No, BAYC license terms say that whoever owns the NFT has the commercialization rights. Now, all you have to legally is prove that you own the NFT, because theft and computer hacking aren't a legally accepted way to transfer ownership.
- jameshart 4y ago
  so long as BAYC continue to honor that agreement. And as an owner of a second hand ape you have no legal recourse if they (or their successors, or their receivers during their bankruptcy) decide they no longer want to.
  - throw_nbvc1234 4y ago
    Is this fundamentally different then any other licensing agreement? Presumably if you want more security you'd get a lawyer and sign a contract but it's not something I've ever had to deal with before. If you think the company is going to go bankrupt then you probably wouldn't make the deal to begin with.
    - jameshart 4y ago
      If you have purchased a license from a copyright holder, and then they go bust, and the copyright gets picked up in the ensuing fire sale by someone else, you still have the ability to go to the new rightsholder and say ‘hey, those rights were licensed to me, I plan on continuing to exercise them.’ But it is by no means clear that someone who bought an NFT from someone who bought an NFT from someone who bought an NFT from the original copyright holder has any basis for being able to expect the new holder of that copyright to continue to allow them to exercise the terms of the original license agreement made between the original seller and the original buyer.