Hey Troublemakers! We hope you are doing well.
As you all may know, the invention of Non-Fungible Tokens (NFTs) has recently taken the world by storm in the past 2 years. NFTs are revolutionizing the way we see art, music, in-game items, and videos through digital ownership powered by blockchain technology. Some of you have probably seen NFTs selling on marketplaces for exorbitantly high price tags, which most likely piqued your interest and is the reason why you’re reading this today.
However, with every new technology comes many thought-provoking questions. And one such question which we have received on several occasions that we’d like to address is “What do you actually own when you own a HellCat NFT?”
In this guide, we’d like to give you a better idea of what you can and cannot do when it comes to legal matters like NFT ownership, copyright, licensing, and commercial use.
Ownership of HellCats
HellCats is a collection of 2,500 unique immutable digital artworks (NFTs) built on the Terra network. When you purchase an NFT, you own the underlying HellCat and the Art in its entirety. Ownership of the HellCat NFT is entirely controlled by smart contracts and lives forever on the Terra blockchain.
Due to its immutable and non-custodial nature, at no point may we seize, freeze, destroy, or otherwise modify the ownership of any HellCat. In line with the nature of blockchain technology, any transactions made with said HellCats cannot be undone, reversed, or restored. Therefore, by owning a HellCat, you are accepting the sole responsibility for any and all transactions involving HellCats digital collectibles.
As a HellCat owner, you are granted by the HellCats Team, a worldwide royalty-free license to use, copy and display the purchased Art and its derivative creations for:
- Your own personal and non-commercial use.
- As part of any marketplace that permits the trade of your HellCat / NFT, on condition that the marketplace cryptographically verifies each HellCat owner’s rights to display the Art for their HellCat ensuring that only the actual owner can display the Art.
- As part of a third-party website/application which permits the inclusion, involvement, or participation of your HellCat, provided that the website/application verifies cryptographically, each HellCat owner’s right to display the Art for their HellCat, ensuring that only the actual owner can display the Art, and to ensure that the Art is no longer visible once the owner of the HellCat leaves the website/application.
In essence, as a HellCat holder, you are entitled to use the Art tied to said HellCat NFT for any personal and non-commercial use. This includes the Art displayed on permitted NFT marketplaces and other third-party websites as long as it is cryptographically verifiable on-chain.
In terms of commercial use, the HellCats Team grants you HellCat owners an unlimited, worldwide license to use, copy, and display the purchased Art for the purpose of creating derivative works based upon the Art. This includes but is not limited to the creation and sale of merchandise items displaying such Art.
This segment also clarifies that HellCat holders are NOT restricted to:
- Owning or operating a marketplace that permits the use and sale of HellCats generally, on condition that the marketplace cryptographically verifies each HellCat owner’s rights to display the Art for their HellCat in ensuring that only the real owner can display the Art.
- Owning or operating a third-party website/application that allows the general inclusion, involvement, or participation of HellCats, on condition that the third-party website/application cryptographically verifies each HellCat owner’s rights to display the Art for their HellCat in ensuring that only the real owner can display the Art, and only if the Art is no longer visible once the owner of the Purchased HellCat leaves the website/application.
- Earning revenue from any of the above activities.
What this means is that the HellCats Team gives you, as a HellCat NFT owner, the unlimited & global right to use the art (of the owned HellCat) for commercial use to earn revenue or compensation from activities such as the sale of merchandise, advertising and digital marketing.
One recent example of this was a dispute between a company (Leap Wallet) and the owner of HellCat #789, where the company displayed HellCat #789’s Art in a product advertisement without the consent or approval of its owner. This dispute was settled by the company paying a sum of royalties to the owner of HellCat #789.
HellCats NFT Branding & Copyright
We encourage and empower HellCat NFT owners to use their art as a form of personal branding or for advertising opportunities. With all that said, as HellCat owners, you agree that you are NOT allowed to use the HellCats brand logo, posters, banners, or any marketing material created by the HellCats Team, for any personal or commercial use.
The HellCats Team reserves the right to the intellectual property of the HellCats brand, trademark, logo, or other proprietary information, the HellCatsNFT website, or any written media, layout, or design of any page, without the HellCats Team’s expressed written consent to its use. This means that you are not allowed to use the HellCats brand and trademark or any endeavors, both personal and commercial use.
The rationale behind this clause is to prevent the HellCats Team from misrepresentation and impersonation in order to protect the Team as well as the general public from scams and other malicious activities that may undermine the brand.
We hope this guide provides you with the necessary clarification on any relevant questions you may have.
This article was written by Gabe. Gabe is a team member and the marketing manager of HellCats. He is a paid contributor to the HellCats team and is personally invested in the project itself. Any information discussed above should not be taken as financial advice, do your own research and come to your own conclusions. Do note that any information above is also subject to change.