IP & Copyrights Need to Know

Komard's Klass

IP & Copyrights Need to Know

Lesson Plan for Projects & Creators

Prepared by Komard

OVERVIEW & PURPOSE

I want to start today's klass by saying I am not an attorney and the information in this klass is only to give a basic understanding of what IP Rights are and how to be clear about the permissions you are giving with the content you create.

WHAT ARE IP RIGHTS?

IP rights are the rights given to persons of their creations of their minds. Typically the creator has exclusive rights over the use of his/her creation for a duration of time. The types of property that is generally covered include:

• Artwork
• Website designs
• Images
• Videos
• Music
• Games
• NFT’S

The creator can dictate who can do what with these creations. As this klass relates to intellectual property and the rights of these properties you should know:

Intellectual property rights are customarily divided into two main areas:

Copyright and rights related to copyright

The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.

Also protected through copyright and related (sometimes referred to as “neighboring”) rights are the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main social purpose of protection of copyright and related rights is to encourage and reward creative work.

Intellectual property, or (IP), is often protected by trademarks, patents, or copyrights.For more information on Trademarks, Patents, and Copyrights visit the https://www.uspto.gov/

Depending on the type of IP, you might be comfortable giving away the rights to the content you created or you may choose to protect them to the fullest extent. This is where an intellectual property disclaimer statement comes in handy. Be clear about your disclaimer and what is and is not being relinquished.

WHAT IS IP INFRINGEMENT?

IP and Copyright infringement occur when an entity uses a creation in any manner not approved by the creator.Infringements can include derivatives, reproduction, distribution, sales and any use outside the uses given by the creator.

EXAMPLES OF IP INFRINGEMENT

Recently we as creators have seen an increase in the number of lawsuits regarding IP and Copyrights.Some of the bigger cases include a lawsuit initiated by Miramax Films against creator and author Quentin Taratino for selling 7 Exclusive scenes from the infamous classic film Pulp Fiction. As the creator of the film it is in my opinion his right to do so but I do not know what the contract contained when he signed with Miramax. Miramax claims “NFTS do not fall into the umbrella of the contract.”

Another example includes Rapper Lil Yachty who has also entered into NFT litigation. In January 2022, Lil Yachty, whose real name is Miles Parks McCollum, filed a lawsuit in a California federal court claiming that an NFT seller, Opulous, committed trademark infringement for its use of his name and likeness to raise over $6.5 million in venture capital funds. Lil Yachty’s complaint alleges that Opulous launched an advertising initiative for a “Lil Yachty NFT Collection '' that would grant buyers access to new music from Lil Yachty, featuring images of him. Lil Yachty and Opulous had previously discussed the rapper’s potential involvement in the launch of Opulous for selling music copyright-backed NFTs.

Despite the two parties never entering into an agreement with one another, Opulous published a series of press releases and social media posts which prominently feature images of Lil Yachty. As stated in Lil Yachty’s complaint, “Defendants utilized the name, trademark, and photography of Plaintiff, all without Plaintiff’s consent. Defendants then collectively and maliciously utilized the alleged affiliation and involvement of Plaintiff as their flagship artist partnership to successfully raise substantial capital funds (represented as over $6.5 million), yet never remitted any monies to Plaintiff.” Lil Yachty seeks damages, injunctive relief to stop Opulous from continuing their use of his name and image, and disgorgement of Opulous’s profits.

An intellectual property disclaimer helps protect your creative property. Whether you have a website of original content, a custom logo, or an NFT Collection an intellectual property disclaimer can aid you in protecting you and your creations.

The above are just 2 examples of how IP and Copyrights as well as trademarks affect the content we create. Which is why its so important to have an understanding of exactly what IP and Copyrights are and how to best protect yourself.

WHERE DO OPEN SEA & MOST NFT MARKETPLACES STAND?

According to the Open Sea (Terms of Service) TOS section 3 paragraph 3 we are granted IP Rights as creators not owners and further reinforces the information above. Here is their statement on the matter:

“All other third-party trademarks, registered trademarks, and product names mentioned on the Service or contained in the content linked to or associated with any NFTs displayed on the Service are the property of their respective owners and may not be copied, imitated or used, in whole or in part, without the permission of the applicable intellectual property rights holder. Reference to any products, services, processes or other information by name, trademark, manufacturer, supplier or otherwise does not constitute or imply endorsement, sponsorship, or recommendation by OpenSea.”

However, most people do not read the TOS of anything they use let alone the market places and their TOS.

ADDED PROTECTION

Include an IP and Copyright disclaimer in your NFT description and or the collection description. Doing this will add a layer of protection for your assets and IP. Even if people fail to read the Disclaimer or TOS you posted it and by making the purchase of the NFT they have agreed to the licensing you established with this disclaimer.

Its like when we use a social media platform or market place we are under the rules, TOS, and any

THINGS TO INCLUDE

When creating your IP Disclaimer there are some key elements you may want to ensure you include. Below is a list of things to consider when creating your IP Disclaimer.

• Date: If you’re creating a standalone document, include the date on which the document was created.
• Parties: In your document, denote who owns the rights to your IP.
• Business description: If applicable, include a clear description of your business.
• IP description: Always include a specific description of your intellectual property.
• Terms: When it applies, write out the terms of your ownership over the IP and how the IP can or cannot be used.
• Provisions: You might choose to include a provision to retain or disclaim all interest in, title, and rights to your IP. Other provisions include copyright provisions or the right to amend the disclaimer in writing in the future.
• Payment terms: It should be clear in your disclaimer how the artist will be paid — or that the artist will not receive payments or royalties for the IP.
• Signatures: When applicable, make sure all parties sign the disclaimer

PLACEMENT

In my opinion I’d place it anywhere I am adding new and original content. Be sure it's clearly visible for everyone to see. You can even create a condensed version and place it into item descriptions as well as collection descriptions on marketplaces.

A final thought on this is you need to understand that as of the date of writing this there are very limited protections in place within Web 3 and or the Blockchain. It's a decentralized space therefore there is no one person in charge to ensure that theft of IP is not happening. That said, depending on the relationships and community you have built they will aid in protecting by filing reports when and where possible to aid in the removal of stolen content.

EXAMPLE IP DISCLAIMER

Where the term company or company names are is where you would replace with your company or project name.

The content on the Website/Market/Web Space (“Company Content”) and the trademarks, service marks and logos are owned by or licensed to (Company Name) or its affiliates, and are subject to copyright, trademark and other intellectual property rights under United States, Canada and foreign laws and international conventions where applicable. Company Content, includes, without limitation, all source code, databases, functionality, software, website designs, audio, video, text, photographs and graphics. All Company graphics, logos, designs, page headers, button icons, scripts and service names are registered trademarks, common law trademarks or trade dress of Company in the United States and/or other countries. Company's trademarks and trade dress may not be used, including as part of trademarks and/or as part of domain names, in connection with any product or service in any manner that is likely to cause confusion, and may not be copied, imitated, or used, in whole or in part, without the prior express written permission of Company.

COMPANY CONTENT ON THE SITE IS PROVIDED TO YOU “AS IS” FOR YOUR INFORMATION AND PERSONAL USE ONLY AND MAY NOT BE USED, COPIED, REPRODUCED, AGGREGATED, DISTRIBUTED, TRANSMITTED, BROADCAST, DISPLAYED, SOLD, LICENSED, OR OTHERWISE EXPLOITED FOR ANY OTHER PURPOSES WHATSOEVER WITHOUT THE PRIOR EXPRESSED WRITTEN CONSENT OF COMPANY. PROVIDED THAT YOU ARE ELIGIBLE TO USE THE WEBSITE, YOU ARE GRANTED A LIMITED LICENSE TO ACCESS AND USE THE SITE AND THE COMPANY CONTENT AND TO DOWNLOAD OR PRINT A COPY OF ANY PORTION OF THE COMPANY CONTENT TO WHICH YOU HAVE PROPERLY GAINED ACCESS SOLELY FOR YOUR PERSONAL, NON-COMMERCIAL USE.

COMPANY RESERVES ALL RIGHTS NOT EXPRESSLY GRANTED TO YOU IN AND TO THE WEBSITE AND COMPANY CONTENT AND MARKS.

These are just examples. You can modify it to suit your needs. Don't be afraid to make changes and most importantly if you have the ability to obtain an attorney you should do so as this is their wheelhouse and they are experts in these matters.