When you buy an NFT, a unique digital token on a blockchain that proves ownership of a specific asset. Also known as non-fungible token, it doesn't give you copyright, commercial rights, or even the right to display the image in most cases. That’s not a glitch—it’s the rule. Over 90% of NFT projects don’t transfer any legal rights beyond the token itself. You own a digital receipt, not the artwork, music, or video it points to.
Think of it like buying a poster of the Mona Lisa. You own the print, not the original painting. The same logic applies to NFTs. The digital asset, the image, video, or audio file linked to the NFT. Often stored off-chain on servers that can disappear anytime. If the server hosting that file goes down—or the project team shuts down—you’re left with a token that points to nothing. And if the creator keeps the copyright, they can sell the same image as an NFT to ten other people tomorrow. That’s not fraud. It’s legal.
NFT intellectual property, the legal rights to copy, distribute, or profit from the underlying content. Usually retained by the original creator unless explicitly transferred in writing. Very few NFT projects grant commercial rights. Even fewer include clear licensing terms. Projects like CryptoPunks and Bored Ape Yacht Club are exceptions—they gave owners limited rights to monetize their NFTs. But those are outliers. Most NFTs, even the expensive ones, come with no rights at all. If you want to use an NFT image in a t-shirt, YouTube video, or ad, you’re risking a lawsuit.
What you’re really paying for is proof of ownership on the blockchain—not control over the content. The NFT legal rights, the enforceable permissions granted by the project’s terms of service. Often buried in fine print or absent entirely. Some projects claim you "own the art" but never define what that means. Others change their terms after you buy. No one is auditing these contracts. You’re trusting code and goodwill, not lawyers.
That’s why so many NFTs vanish. Projects like Lunar Crystal and CHY promised perks, NFTs, or airdrops that never arrived. Buyers thought they owned something valuable. They owned a link to a file that no longer exists. The NFT still shows up on your wallet. The rights? Gone.
So what should you look for? If a project claims you get rights, demand a written license. Check if the terms are on-chain or just on a website. Look for clear language: "You may use this image commercially," not "You own this." If it’s vague, assume you own nothing. Most NFTs are collectibles, not assets. And collectibles only have value if someone else believes in them too.
Below are real cases where NFT rights were misunderstood, ignored, or outright stolen. You’ll see how people lost money not because prices dropped—but because they thought they owned something they never did.
Buying an NFT doesn't mean you own the artwork. Learn what rights you actually get, how commercial use works, and why reading the terms is the only way to avoid legal trouble.
