CryptoPunks V1 owners are suing developers for the right to resell NFTs on OpenSea

Litigation between the community of owners of the NFT CryptoPunks V1 collection and the studio Larva Labs, which advocates the removal of V1, has entered a new round.

CryptoPunks V1 Non-Fungible Token Collection Owners filed an application to the court with a request to cancel the request of the creator of these tokens, Larva Labs, to remove the V1 collection from the OpenSea trading platform. The lawsuit cited the Digital Millennium Copyright Act (DMCA).

In early February, Larva Labs, also citing the DMCA, released
notification from the Creator of CryptoPunks V1 to remove this NFT collection from the OpenSea site.

The studio then stated that it, as the owner of the V1 tokens, does not want them to be sold on the OpenSea platform, as these tokens undermine the value of the new CryptoPunks V2 series.

In turn, the community of V1 owners claims that since they bought the tokens for $50 million, they have every right to resell them on the marketplace.

Andy Lian, founder of Influxo studio, also specializing in the creation of NFT, expressed concern about the litigation between the creators and buyers of V1. He believes that the implications of this case go beyond monetary issues and concerns the protection of investors’ copyrights.

“Until there is a generally accepted NFT standard, it is very difficult to control every single transaction and fee in the market. The industry is still highly dependent on speculation and prices, and if this continues, you will see many more cowboys running around the crypto market in the NFT sector,” he explained.

Yehuda Petscher, an analyst at NFT watcher CryptoSlam, doesn’t share Andy Lian’s concerns. He argues that all the information needed to validate an NFT is stored on the blockchain along with the token itself, and users simply need to be trained to read and interpret the data stored there:

“The beauty of blockchain is that you don’t need that kind of oversight. You don’t need specific rules, because some of them are already undeniable. This is the power of blockchain.”

The analyst is going to closely monitor the trial. According to him, from this case it will become clear how the copyright law will develop further. In addition, it will be possible to draw conclusions about the potential need for oversight in the NFT industry.

This is not the first time that Larva Labs has used the DMCA to force the removal of CryptoPunks from the OpenSea marketplace. However, in September, Larva Labs lost the case and was forced to return to OpenSea the CryptoPunks sold to the PolygonPunks community.


Source: Bits

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