Venture capital firm Andreessen Horowitz has developed six licenses called Can’t Be Evil (CBE) for non-fungible tokens. The licenses are based on a model developed by the Creative Commons organization.
Miles Jennings, Chief Legal Counsel for Andreessen Horowitz, noted that uncertainty reigns in the NFT industry right now. Due to the lack of standardization, issuers of collectible tokens may be subject to copyright infringement and other legal risks, and NFT buyers are not even aware of their rights. Obtaining individual licenses is very expensive, and all this slows down the industry.
“The new set of CBE licenses will help NFT creators protect their intellectual property rights, give NFT owners inalienable basic rights, and help industry players unlock the creative and economic potential of their projects. People will begin to understand the legal structure in which they can operate,” Jennings wrote.
Lawyer Andreessen Horowitz added that the six CBE licenses are intended for a general audience and are available for download on GitHub. He hopes this will lower the barrier to entry into the NFT space for artists, musicians and other creatives. CBE licenses are deployed in the Arweave decentralized storage protocol and included in a smart contract, so token creators can embed them in their NFT projects.
The increase in NFT scams has drawn the attention of regulators to the area. In March, the US Securities and Exchange Commission (SEC) has already begun to investigate the activities of the creators of NFTs and platforms for trading collectible tokens for violations of securities laws. As early as last year, SEC Commissioner Hester Peirce warned that in some cases, NFTs may indeed have the characteristics of securities.