Decentralized Metaverses are currently only decentralized on paper, according to a new Galaxy Digital report on NFT licenses. The authors of the report published by Galaxy Digital convey the following information on the subject.
"If these issues are not addressed now, so-called decentralized Metaverses will not be significantly different from those built by Web2 giants like Meta (Facebook). So these products that you invest in because decentralized are actually highly centralized."
The report examined Metaverse license agreements by The Sandbox and Decentraland cryptocurrency companies to understand how real-world copyrights and trademarks are perceived in the Metaverse environment. It concluded that both companies did a "good job" attempting to transfer ownership of user-generated content to their users, but in both cases they retained all intellectual property related to the sale of plots of land in the companies' metadata, only transferring the usage rights to the NFT buyers.
However, even if users own the rights to user-generated content, there is no guarantee that a Metaverse administrator will support it in their virtual world. Content moderation policies allow users to ban or remove their content regardless of the Intellectual Property rights of these platforms. The following statements were used in the continuation of the report:
"For example, owning the rights to a custom character skin does not guarantee that Decentraland or Sandbox will allow that skin to be used in-game. Where there is no third-party alternate world to embed your user-generated content, effective use of that content is subject to the metaverse administrator's permission."
The report also targeted Yuga Lab's upcoming Metaverse project Otherside and its terrain NFTs Otherdeeds. NFT token holders have commercial rights for other Yuga Labs collections, such as the Bored Ape Yacht Club, while Otherdeeds does not. "The Otherside agreement clearly states that purchasing Otherdeed NFTs does not grant any intellectual property rights," the report states. it was said.