Commercial Rights vs. CC0
Explaining why Commercial Rights are centralized and how I made a $60k bet on CC0.
Quick Note: Twitter shut down Revue, so I migrated to Substack.
Commercial Rights ≠ Web3 Ethos
Commercial Rights go directly against the Web3 Ethos. Here’s a brief email on why CC0 is more “Web3” than Commercial Rights.
And why I bought this @nounsdao for $60k ↓
The Web3 Ethos
Let’s start with what makes Web3, Web3. This will vary from person to person, but here are my 3 pillars:
Decentralized: no single points of failure/control
Permissionless: no centralized gatekeepers
Trustless: no need to trust 3rd parties
What Are Commercial Rights?
Commercial Rights are the ways an asset can be used for commercial purposes. Such as selling/distributing the asset or using it in advertising/marketing.
They are specified in the contract the asset was created under.
Example: BAYC’s Rights
Here are some of the rights @yugalabs granted Bored Ape holders:
use, copy, & display the art
create derivative works
produce & sell merch
Of course, it’s all “Subject to your continued compliance”
Limitations & Restrictions Commercial
Rights often come with limitations & restrictions, such as:
how the work can be used
how the work can be distributed
who can use/distribute the wor
These rules are set and managed by the creator (or a 3rd party).
Legal System Dependent
These limitations & restrictions depend on the legal system for enforcement.
Commercial Rights are a legal construct and do not exist without the legal system - a system powered by human arbitration, paper, and fax machines.
A Hypothetical
Imagine you hold an NFT with Commercial Rights (granted by the creator), and a rando starts using it to sell t-shirts.
If you can’t work out a deal with the rando, then your only recourse is through the legal system, which will cost you time and money.
Example: Yuga Labs vs. Rider Ripps
@yugalabs is in a legal battle over the BAYC art copyright.
Yuga argues it should control the use/distribution
Ripps argues NFTS don’t qualify for copyright protection
The decision lies with the courts. https://tinyurl.com/mr65j656
Doubly Centralized
This means Commercial Rights have 2 points of centralization:
The creator/party that manages the limitations/restrictions
The legal system that enforces the limitations/restrictions
Against The Web3 Ethos
Here’s why Commercial Rights go against the Web3 ethos:
decentralization: creator & legal system = points of failure
permissionless: creators impose limitations & restrictions
trustless: holders must trust the legal system enforcement
A Deeper Question
This begs the question... Are “IP Rights” even compatible with the Blockchain?
Can you control the commercial use of IP (a legal construct) without the legal system (a 3rd party)?
Not saying it’s impossible, but it’s certainly a challenge.
An Alternative Solution
If Commercial Rights are centralized, what do we do? Well, one option is:
Acknowledge the incompatibility of IP Rights x Blockchain
Toss any/all “rights” out the window
Find a different way to monetize, or just collect for fun
Enter CC0.
What is CCO?
CC0 (Creative Commons Zero) is a public domain dedication that lets creators waive all copyrights and related rights to their works.
Anyone can use, modify, and distribute the work without permission or attribution.
CC0 Is More “Web3”
CC0 NFTs are more decentralized because they DO NOT:
rely on a central authority to manage access/use
2. rely on the legal system for enforcement
This means CC0 is more aligned with the Web3 Ethos.
Open Distribution
Anyone can use and distribute CC0 works without permission or attribution.
Ex. Yuga included @cryptoadzNFT & @nounsdao in the Otherside trailer.
Both are CC0 works, so no permission/attribution was needed. Also, bonus points, no time was lost to negotiations.
Power To The People
To be clear, I am not saying we should “CC0 all the things”.
But, Blockchain was always about restoring power to the people.
Commercial Rights ultimately keep the power where it always was.
With the government, banks, and big corporations.
In Summary
Commercial Rights rely on the legal system
The legal system is a human-arbitrated 3rd party
CC0 lets anyone use, modify, and distribute works
CC0 is more Web3 than Commercial Rights
Blockchain was built to restore power to the people