CC0 (Creative Commons) is one of the least understood topics in the #NFT industry
It has the potential to either make or break the NFT industry!
Keep reading to learn all about #CC0 to stay ahead of the pack:
🧵👇
In this thread we will discuss:
• WHAT IS CC0?
• IP RIGHTS SPECTRUM
• CC0's ARCHITECTURE
• WHY IS CC0 IMPORTANT TO THE NFT INDUSTRY?
• WHY PROJECTS ARE HESITANT TO FULLY COMMIT TO CC0?
• WHICH PROJECTS CAN USE CCO?
• BENEFITS AND DRAWBACKS OF CC0
Before we continue...
You can read the unrolled version of this thread here: momentum6.substack.com/p/what-is-cc0-creative-commons
The primary purpose of #Web3 is to eliminate middlemen and credit original creators for their artworks
It ensures complete creative control for both users and creators
Although Web 3 is heading towards COMPLETE OWNERSHIP, there are still issues that need to be fixed
Note:
Stakeholders are the:
1. Builders who build new businesses on top of the NFT Project's artwork
2. NFT Holders who bought the NFTs to utilize them to generate passive income
Most NFT projects have taken the good old COPYRIGHTS approach to exercise their rights over the artwork
This prevents several stakeholders from building on top of the NFT project
However, CC0s can eliminate centralization and offer stakeholders rights over the artwork
• WHAT IS CC0?
CC0 is a type of copyright that gives stakeholders full rights to use their NFTs for monetary purposes
The stakeholders can build new businesses on top of the original artwork without any permission from the project itself
This differs significantly from traditional copyright laws, which normally grant only the project exclusive rights to their artwork
As of now, there is a broad spectrum of IP rights from which NFT projects can choose and adopt
IP RIGHTS SPECTRUM:
On the one extreme, there is Creative Commons (CC0), where the project will not be enforcing any copyright over the NFT
As a result, stakeholders can essentially build on top of the original NFT collection and utilize it in any way they choose to
On the other end of the spectrum is the traditional copyright system, where the project has full control and IP rights over the NFT
Stakeholders cannot utilize the NFT to build, advertise, incentivize, or use it for any other purpose other than just owning the art
Some NFT projects go for a middle ground, granting IP rights based on certain criteria
Example:
Some projects may have a maximum incentive cap for the users to build a business built on top of the NFT artwork
@BoredApeYC gives IP rights to the specific Ape that you own to use it for commercial purposes
@doodles requires creators to obtain permission from them to commercialize their NFT and to build a business on top of it
• CC0's ARCHITECTURE
1. OPEN PERMISSIVE RIGHTS:
The right for anyone to use the original artwork and create spin-offs to build new products
The IP rights of the artwork can be used on lunchboxes, bags, etc.
This, in turn, raises the value of the original artwork
2. INCENTIVES FOR CREATORS:
Builders that build products based on original artwork get incentivized by the artwork's community
Fans who want to purchase the artwork's products incentivize creators
As more builders build on top of the artwork, a positive cycle is created
3. CENTRALIZED DECISION MAKER:
The purpose of a centralized decision-maker is to primarily optimize the aforementioned points
It is necessary for the project b/c the project's growth may or may not go in the right direction without them
• WHY IS CC0 IMPORTANT TO THE NFT INDUSTRY?
Since CC0s enable everyone to build on top of the original NFT collection, it scales the NFT industry as a whole as more and more creators rush to build on top of NFT projects for commercial and incentive purposes
In essence, CC0s help in advertising the NFT project by giving the project's audience the ability to use it for shows and movies
CC0s also offer a decentralized approach to the development and advancement of the NFT project
When the project owns all of the IP rights, it is completely its responsibility to develop and make the IP valuable in the future
As a result, the entire NFT project's users rely on a centralized entity to bring value to the table
On the other hand, CC0 allows the entire NFT community to build on top of the project in order to increase the value of the IP
Given the large number of people using the IP to build products, this increases the likelihood that the IP will be more valuable in the future
CC0 is also necessary to build a global brand where millions of people can build and commercialize with the NFT IP
Thus, CC0 gives an agnostic platform where anyone can build on top of the IP to bring more value to the NFT project
• WHY PROJECTS ARE HESITANT TO FULLY COMMIT TO CC0:
Most projects will want to tightly control their brand in order to prevent stakeholders from using their artwork for detrimental ends
EX: The value of a family-friendly NFT project will deteriorate when its art is being used in a porn commercial
Therefore, even if a project uses a CC0 framework, it will typically need restricted categories for commercial use
• WHICH PROJECTS CAN USE CCO?
A project is better off using a traditional copyright framework for IP rights if it is seeking to establish an "entertainment brand"
As an entertainment brand, you will require IP rights to use your digital work for a wide range of purposes
However, CC0 would be a better choice if a project aims to establish a "Memetic internet community"
CC0 takes a "community" approach where anyone can build on top of the original artwork
Hence, CC0 essentially spreads the artwork's "meme" and thus scales the project
Benefits of CC0s:
• It enables anyone to build on top of the NFT project thus scaling the project and accruing value to the ecosystem
• It makes the digital artwork accessible and utilized by anyone, thus encouraging NFT adoption
Drawbacks of CC0s:
• There is a risk that the project's value will diminish over time since the artwork could be misused for negative reasons that could damage the project's reputation
• It reduces the exclusivity and rarity of the NFT collection
VERDICT:
CC0 introduces new revenue streams for both project's founders and stakeholders
Stakeholders of the artwork can 'rent out' their artwork to be used in commercials/short films
They can use the IP to build products and get incentivized by the fans of the artwork
This benefits the project's founders since it accrues value back to the artwork as more people join the community to build more products
However, without a centralized creative visionary the project might not head in the right direction & have unintentional consequences
As a result, a centralized decision maker paired with the powerful effects of a memetic community might be the sweet spot for NFT projects that want to adopt a CC0 framework
Get the latest news and research from M6 Labs directly in your inbox before Crypto Twitter!
Subscribe to our Substack for institutional quality content curated by a community of degens:
momentum6.substack.com/