The recent launch of Own, a decentralized social media platform built on blockchain, caught our attention. As entertainment attorneys working closely with creators, brands, and platforms, we’re always watching how new technologies reshape the business and legal landscape, particularly in how creators monetize their work.
Own’s model is ambitious: it allows creators to earn revenue through tradeable tokens, tipping, sponsorships, and content licensing regardless of follower count. One line from TechCrunch’s coverage of the launch stood out to us: “Each piece of content has proven ownership and origin, tracked on the blockchain, allowing creators to license their content while maintaining their rights.”
Blockchain and content licensing: Promise and precautions
The idea of blockchain to verify content ownership is particularly interesting. In theory, it could simplify the licensing process by establishing a clear chain of title. That’s a big deal in entertainment law, where disputes over ownership can derail deals. But creators still need to be careful. Even if a piece of content is tokenized and tracked on-chain, that doesn’t automatically mean the creator owns all the underlying rights. Music, visuals, and likenesses all need to be cleared before licensing content to a brand.
Tokenization and legal risk: Lessons from NFTs
There are potential pitfalls. This reminds us of the early days of NFT collectibles. Some of those digital assets ended up entangled in securities law questions and litigation, and many lost their value. Creators and consumers alike need to understand what they’re actually buying or selling. Does the token represent ownership, a license, or just access? Can it be transferred off the platform? And what happens if the platform disappears?
Key questions for creators to consider
Before diving into tokenized content or decentralized platforms, creators should be asking some critical questions to better understand their rights and the implications of participation:
- Do I own all the rights to the content I’m tokenizing?
- What rights am I granting when I license or sell a token?
- Can I move my tokens or content off the platform?
- What happens if the platform shuts down or changes its terms?
- As platforms like Own continue to blur the lines between content, commerce, and cryptocurrency, creators must be proactive in protecting their rights and understanding their obligations.