Animoca Brands Launches NFT Licenses, Empowers Creators with Royalties

The rising concerns for creator royalties led to Animoca Brands taking things into their own hands with NFT licenses.

Bear with a digital Animoca Brand NFT license standing next to an astronaut in space.
  • Animoca Brands has introduced NFT licenses that enforce creator royalties. 
  • The venture capitalist released the licenses in light of leading NFT marketplaces exploiting creator royalties. 

Creator royalties have been a controversial topic as of late as leading NFT marketplaces, Blur and OpenSea, compete to remove creators from the equation. 

The rising concerns for creator royalties led to Animoca Brands taking things into their own hands, with chairperson Yat Siu at the forefront, advocating for creators’ rights. 


The chairperson shared in an interview that the NFT marketplaces’ cutting out royalties from their fee structure insulted the creators. 

Interestingly, as part of its commitment to supporting NFT creator royalties, Animoca Brands has introduced a set of NFT licenses that legally binds creator royalties payments and other conditions. 

The venture capitalist believes that royalties for NFT creators are essential to keep the web3 ecosystem healthy and are a critical part of the web3 ethos. 

Keeping Web3 Healthy with NFT Licenses

Animoca Brands has rolled out a set of three NFT licenses that require the payment of creator royalties as a condition for using the underlying NFT. The Web3 leader has introduced a license for personal use, permitted commercial use, and unlimited use.


Furthermore, the licenses fall under the jurisdiction of New York State Law. By signing the agreement, each party agrees to submit itself and its property to the jurisdiction of any New York State court or federal court in New York City.

Each license lays a clear framework for NFT usage rights for creators and holders with different restrictions and conditions. The licenses are a significant step towards establishing a more defined framework for creator rights and NFT usage.

Here’s a quick overview of what all licenses enforce:

  • All licenses protect the creator’s trademark, trade name, business name, and logos. 
  • The licenses prohibit holders from using the licensed NFT artwork for anything that would bring the Creator into disrepute, such as promoting hate, pharmaceutical products, violence, and more. 
  • The license also protects the Licensed NFT from being used to violate applicable laws. 
  • While royalty-fee, holders must agree to pay a creator fee or resale royalty for a percentage set by the creator. 
  • The license bars holders from selling on marketplaces that do not collect or enforce collector fees. 
  • It prohibits holders from minting other NFTs using the licensed NFT artwork or using it to compete with the creator.

While the licenses share some similarities in the terms and conditions, several differences exist that adhere to the individual use cases. 

What are the differences between the Animoca Brands NFT licenses?

The personal use license grants holders a non-exclusive, non-transferable, and royalty-free license to use the underlying NFT artwork for personal use. The license prohibits the holder from commercializing the IP associated with the NFT. 

On the other hand, the permitted commercial use license allows holders to use the NFT for commercial purposes. 

Here’s a quick overview of the license:

  • Holders can use the Licensed NFT Artwork in any format and media for whatever purpose, including commercialization. 
  • For commercialization, the holder must adhere to the predetermined annual monetary limit set by the creator. However, If the holders earn more than the limit, they must notify the creators and obtain consent. 
  • The license allows creators to audit the holder’s commercial use of the IP Rights associated with the licensed NFT upon request. 

The unlimited-use license is the highest form of the agreement. The license allows for unlimited personal use with no monetary limit on commercial use. Holders with this license can use the licensed NFT for all purposes. However, they must adhere to the other bylaws of all licenses mentioned above. 

On the Flipside

  • OpenSea recently removed creator royalties for a limited time to compete with Blur’s 2.5% creator royalty fee. 
  • Yuga Labs, creators of the BAYC, received 50 ETH or approximately $80,000 in royalties from the Golden Key Sewer Pass NFT sale. 

Why You Should Care

NFT licensing and creator royalties are some of the most debated topics in the crypto space. Animoca Brands stepping in and settling the debate with clear-cut guidelines is a major achievement for the industry. 

These licenses will serve as a guide and help protect creators and holders from problems. 

Read how a Bored Ape Holder took his NFT to Bitcoin by burning the original NFT:
Bored Ape (BAYC) Holder Tries Out Bitcoin NFTs, Burns BAYC 1626 in the Process.

Find out how Charles Hoskinson stirred controversy by using jpegs of NFTs:
Charles Hoskinson’s “Saved” NFT Profile Picture Sparks Discussion – Crypto Twitter Reacts.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.