NFT Licenses: Why Are They Important?

(Part 1)

Non-fungible tokens (NFTs) are revolutionizing the way we look at digital assets. From artworks to music, videos, and even virtual real estate: NFTs offer a more secure, immutable way to trade digital items. But when it comes to owning these assets, there is an often-overlooked factor: licensing. Let’s take a closer look at what NFT licenses are, the different types of licenses available, and why licensing portability is important.

What Are NFT Licenses?

NFT licenses are agreements between owners and users of digital assets. These agreements grant permission to use an asset in a certain way while protecting the rights of the creator. Licenses also help ensure that users are not able to use an asset in a way that was not intended by the owner, and they help specify how royalties should be handled if the asset is sold.

What’s The Problem with Licenses?

The problem with NFT licenses is that most marketplaces do not provide a way to attach licensing language to digital assets. This means that buyers of NFTs may not be aware of restrictions on the use of the asset, or even if there are any. It also means that there is no way to ensure that royalties are paid if the asset is sold or used in a commercial setting.

How Tozex Is Solving the Problem

Tozex has developed a solution to this problem by introducing Creative Commons Licensing for NFTs. By default, all NFTs created on Tozex will have a Creative Commons License or a Private Creator License, ensuring that users have the freedom and flexibility to fully enjoy their digital assets.

CC licenses is an intellectual property standard adopted by many significant NFT projects.

CC licenses give a standard way for content creators to monetize and defend their work. It allows users to distribute, remix, adapt, and build upon the material in any medium or format, so long as attribution is given to the creator.

Of course, Creative Commons isn’t the only license that can protect your work. With our Private Creator License, creators can utilize other public domain or commercial licenses by simply importing them into the platform, which allows them to remain in control of their assets.

If you are in any doubt about what kind of license would be better to choose, you can always use a License Chooser. This chooser helps you determine which Creative Commons License is right for you in a few easy steps.

What Is Portability, and Why Does It Matter?

Portability is an important concept when it comes to digital asset ownership. It means that assets can be transferred from one platform to another without any loss of data or ownership rights. Licensing is an integral part of portability, allowing users to bring their licenses with them wherever they go. If users cannot transfer their licenses from one platform to another, then they are limited in the ways that they can use and enjoy their digital assets.

Tozex solves this problem by allowing users to easily transfer any type of license with their NFTs. This portability of licenses is essential for creators and users to maximize the value of their digital assets.

How the Licenses is managed on the NFT smart contract ?

On the Tozex platform we have decided to use the technical standard proposal EIP-5218 allowing to manage the associated of licenses available for NFTs. EIP-5218 provides functionality to create, transfer, and revoke licenses, as well as to determine the current licensing state of an NFT. The EIP-5218 standard allows users to take full advantage of Creative Commons Licensing and Private Creator Licensing.

Takeaway

Thanks to these two types of licenses, Tozex users can enjoy the unique properties of NFTs and remain in control of their assets. Providing the most secure and flexible way to own digital assets, Tozex is revolutionizing the NFT trading industry.

Want to learn more about NFTs on Tozex? Head to our website and find out how you can start creating NFTs today: https://tozex.io/