Domains in court – DNW Podcast #378 – Domain Name Wire

My comments were directed to specific misrepresentations being made by the people selling them. For example:

>For one, fractional ownership is nothing new, so
>why for a valuable domain asset his comments
>were relatively negative

First off, you are not buying “fractional domain ownership”. You are buying a share in a company which owns the domain name, and with very limited actual rights in that company. I agree with you that “fractional ownership is nothing new”, however some promoters are making statements which are not consistent with what they are actually selling.

“For the NFT part is understandable that there’s a lot of gray or unclear legal areas”

No, there aren’t, and that’s the problem.

“if someone says you basically have the rights”

That is not how one obtains a transfer of rights which the very black-and-white, clear law will recognize. Again, people think they are obtaining, for example, copyrights in artworks merely because some website has a vague and contradictory statement saying so. That is not how copyright assignment works, and there is nothing gray or unclear about how to assign or license a copyright.

In the case of Paradise Trippies, which was one of the examples, their FAQ is outright contradictory, saying:

“Do I own the commercial rights to my NFTs

Yes. They are free for you to use under a non exclusive license.”

If you have a license in something, you do not own that thing. So, right off the bat, this was written by someone who does not know what they are talking about, or simply does not care. And that’s leaving aside whatever it is that is supposed to be meant by “commercial rights”. You mean, you don’t have any non-commercial rights? It makes no sense.

On top of it making no sense, the actual terms of this “non exclusive license” are nowhere to be found. So the FAQ is not only hopelessly vague and contradictory, but it is also misleading, unless you happen to know where the terms of this “non-exclusive license” are located.

Again, it’s not about being “negative on NFT’s”. People are free to buy what they want. What is concerning is that people who are selling them are saying things which are either deliberately untrue or so cavalier that it is clear they do not care. When someone asks “Do I own this?” then “Yes. You have a license I won’t show you.” is not an honest answer.