Use, Purchasing, Licensing, of IP In NFTs, Web3 & More…
Increasing posts talk about NFT’s, Blockchain, Web3, etc and the use of IP.
As someone who’s owned, sold, licensed, and represented parties wishing to use IP including music, video, photo, art, and ‘format’ rights etc, thought I’d share a few words re use of IP in NFT’s, Blockchain and allied uses.
After engaging with a growing number of parties operating in the tech universe, there’s not often a true understanding of the intricate workings of IP. Take music for example. Ownership and importantly who actually has the ‘rights’ to exploit various elements in a recorded work are frequently misunderstood, overlooked, or deliberately ignored!
There’s massive investment in new tech, yet often, little if any credence is given, or investment made, when dealing with IP and corroborating who the owners, controllers of ‘Rights’/IP actually are? “Chain of title” needs to be established.
In music you have the ‘Recording Rights’ which include the party/parties who own/control the recording in a particular ‘released’ recording. The ownership or control of a recording may not rest with the company or artist known to have ‘released’ the recording as ‘rights’ may have just been ‘licensed’ for a particular ‘release’ and use of the ‘release’.
Also, an artist and other parties associated with the recording may not have rights to commercially exploit, sell or license the recording, with actual ownership/control resting with another party!
The recording also contains the rights of the music publisher(s), composer(s), lyricist(s) and in some cases music arrangers. And whilst years ago it was rare to have multiple music publishers with rights in a composition, today it’s common. Say a group have 5 members who claim a writer’s share of the song; it’s not unusual today for each member to be signed to different music publishers. Result. 5 writers and 5 publishers with veto rights!
The publisher may say yes, but songwriter(s) (depending on their Agreement with the publisher) may say no; or vice versa!
In addition, royalty collection agencies may have certain interests in the use of a song composition. Licensees may believe they’ve secured all licenses to exploit a release, license or purchase acquired - including ‘Performance Rights’ (“PR”) and “Pay Sources” (“PS”) for the world -when PR/PS were already registered with a Performance Rights Organisation (“PRO”) in a particular territory.
In yet further addition, there are Merchandising, Photographic and Design rights which can sometimes be complex and controlled/owned by parties not easily identifiable. Incidentally record companies may now seek to include Merchandising Rights within artists contracts.
Plus there may be several parties with interest in an image, brand or trademark, including parties outside the UK. So territorial and licence rights must be reviewed (including sub-licensees and collection societies etc), which may be granted for a particular territory or use.
So ownership and rights of approval re commercial use has to be ascertained.
Many artists, managers, production companies, composers, music publishers, record producers and record companies (and TV, film companies and Advertising agencies) have been embroiled in legal disputes regarding ownership and/or control and specific use of rights in IP.
Unfortunately, I have frequently dealt with parties who haven’t understood or been truthful re what ‘rights’ they actually do own/control.
There may be several parties with an interest in an image, or trade name. The releasing record, film, TV etc. company may have total or only part control. Particularly re territories outside the UK. When using photography/images, one has to ascertain who truly owns the image(s) being used particularly for commercial purposes.
Numerous artists, composers, record companies (and footballers) etc, I dealt with had mistakenly believed that they were genuinely authorised to sell, or license certain complete rights when they were not legally entitled to do so! They may only control part of a specific ‘right’!
Therefore when acquiring IP to use in technology (or otherwise), it is crucial that the correct ownership/control of IP is ascertained. Be aware and spend money and time on due diligence when exploiting IP. Any initial savings and market, financial gains could be wiped out rapidly in legal and reputational losses,
Happy to engage with parties interested to know more.
Increasing posts talk about NFT’s, Blockchain, Web3, etc and the use of IP.
As someone who’s owned, sold, licensed, and represented parties wishing to use IP including music, video, photo, art, and ‘format’ rights etc, thought I’d share a few words re use of IP in NFT’s, Blockchain and allied uses.
After engaging with a growing number of parties operating in the tech universe, there’s not often a true understanding of the intricate workings of IP. Take music for example. Ownership and importantly who actually has the ‘rights’ to exploit various elements in a recorded work are frequently misunderstood, overlooked, or deliberately ignored!
There’s massive investment in new tech, yet often, little if any credence is given, or investment made, when dealing with IP and corroborating who the owners, controllers of ‘Rights’/IP actually are? “Chain of title” needs to be established.
In music you have the ‘Recording Rights’ which include the party/parties who own/control the recording in a particular ‘released’ recording. The ownership or control of a recording may not rest with the company or artist known to have ‘released’ the recording as ‘rights’ may have just been ‘licensed’ for a particular ‘release’ and use of the ‘release’.
Also, an artist and other parties associated with the recording may not have rights to commercially exploit, sell or license the recording, with actual ownership/control resting with another party!
The recording also contains the rights of the music publisher(s), composer(s), lyricist(s) and in some cases music arrangers. And whilst years ago it was rare to have multiple music publishers with rights in a composition, today it’s common. Say a group have 5 members who claim a writer’s share of the song; it’s not unusual today for each member to be signed to different music publishers. Result. 5 writers and 5 publishers with veto rights!
The publisher may say yes, but songwriter(s) (depending on their Agreement with the publisher) may say no; or vice versa!
In addition, royalty collection agencies may have certain interests in the use of a song composition. Licensees may believe they’ve secured all licenses to exploit a release, license or purchase acquired - including ‘Performance Rights’ (“PR”) and “Pay Sources” (“PS”) for the world -when PR/PS were already registered with a Performance Rights Organisation (“PRO”) in a particular territory.
In yet further addition, there are Merchandising, Photographic and Design rights which can sometimes be complex and controlled/owned by parties not easily identifiable. Incidentally record companies may now seek to include Merchandising Rights within artists contracts.
Plus there may be several parties with interest in an image, brand or trademark, including parties outside the UK. So territorial and licence rights must be reviewed (including sub-licensees and collection societies etc), which may be granted for a particular territory or use.
So ownership and rights of approval re commercial use has to be ascertained.
Many artists, managers, production companies, composers, music publishers, record producers and record companies (and TV, film companies and Advertising agencies) have been embroiled in legal disputes regarding ownership and/or control and specific use of rights in IP.
Unfortunately, I have frequently dealt with parties who haven’t understood or been truthful re what ‘rights’ they actually do own/control.
There may be several parties with an interest in an image, or trade name. The releasing record, film, TV etc. company may have total or only part control. Particularly re territories outside the UK. When using photography/images, one has to ascertain who truly owns the image(s) being used particularly for commercial purposes.
Numerous artists, composers, record companies (and footballers) etc, I dealt with had mistakenly believed that they were genuinely authorised to sell, or license certain complete rights when they were not legally entitled to do so! They may only control part of a specific ‘right’!
Therefore when acquiring IP to use in technology (or otherwise), it is crucial that the correct ownership/control of IP is ascertained. Be aware and spend money and time on due diligence when exploiting IP. Any initial savings and market, financial gains could be wiped out rapidly in legal and reputational losses,
Happy to engage with parties interested to know more.