Despite Rough Start, IP Will Rule The Metaverse
Noted data policy expert Lori Fena, Co-Founder of Personal Digital Spaces, outlines the three fundamental drivers to unlock the value of Intellectual Property in Web3, the Metaverse and NFT Marketplaces
WINSTED, Conn., April 26, 2022 /PRNewswire/ — NFT marketplaces have made a critical miscalculation by ignoring Intellectual Property (IP) infrastructure. NFT trades are just token exchanges without offering clear rights to underlying content. The pervasive failings of NFT marketplaces demonstrate the perils that beset IP rights holders and users when terms-of-service disclaimers combine with unrestrained, real-time distribution systems. Changes are urgently needed to manage IP in the evolving digital age.
Noted data policy expert Lori Fena, Co-Founder of Personal Digital Spaces, outlines the three fundamental drivers to unlock the value of IP in the Metaverse and Web3:
- Asset Ownership across Decentralized IP Supply Chains
Creators’ and consumers’ growing investments in sharing IP via new platforms is driving the growth of decentralized IP supply chains. Today’s systems need to take into account the ability to register and track IP ownership across all digital supply chains and marketplaces to capitalize on the rapidly expanding base of creators, content and consumers.
- Implementation of Real-Time Systems for IP
The velocity of content distribution has made physical licensing agreements and centralized royalties impractical in a decentralized, real-time setting. Retroactive policing of IP rights, trades and exchanges have frustrated consumers with little recourse to address fraud, IP theft and devalued assets. Digital asset copyright, trademark and distribution rights must evolve from paper contracts to real-time, use-licensing systems that coexist and evolve with networked applications. - Broader-Based Business Models
Real-time use licensing and trading can enable pricing models based on the growth and quality of digital assets. This will allow all open markets to inform use-based and context-reactive pricing models. While advertising- and subscription-based models are limited by population and time, market-based pricing business models allow the value of digital assets to grow commensurately with the exponential rise in assets, users and use cases.
The next chapter in IP licensing is now being written. Licensing professionals have the opportunity to map assets, business models and markets into an increasingly decentralized world. There is no better time than today, World IP Day, to accelerate the creation of a sustainable IP economy.
About Personal Digital Spaces: PDS provides an enterprise-grade API platform for building applications and marketplaces to license and monetize digital content and services. PDS fosters responsible, real-time management of digital property rights toward a Sustainable Information Economy where all can thrive.
SOURCE Personal Digital Spaces (PDS)
