How Large Companies Can Facilitate NFT Adoption And Copyright Enforcement

Cory Hymel
|
August 25, 2022
The ongoing crypto downturn may have injected an additional dose of skepticism among the cynical members of the general public regarding blockchain, crypto, and NFTs. However, the same cannot be said concerning entertainment, sports, and cultural organizations. Surprisingly, many of the world’s most recognizable brands are busy experimenting with how adopting NFTs can complement their overall missions and business models.

As large companies increase their efforts to enhance brand optics, there have been some indisputably captivating NFT acquisitions and launches among leading corporate names. From Coca-Cola to Pizza Hut, Adidas, Visa, Pringles, Twitter, Instagram, etc., firms are competing to incorporate NFTs into their brands.

While increased corporate adoption exponentially increases the value and utility of NFTs, it also enhances the reality that NFTs are soon taking on a life of their own and could quickly become a significant part of our lives. However, since most NFT projects are designed to provide ownership of creative works, confusion still exists on what owning NFTs on a blockchain means.

This article explores the role large companies can play in facilitating NFT adoption and copyright enforcement, which can get complicated as consumers gravitate towards the world of Web3.

In the Footsteps of Consumers

While some critics still consider NFTs a simple fad, big brands have taken note of the millions of dollars consumers are willing to pay to become a part of the digital future.

Several leading brands are already at the forefront of including the NFT concept in their product designs and marketing. Some of the companies that have pioneered NFT adoption include:
  • Twitter: Early in 2022, thousands of Twitter users’ circular profile pictures turned hexagonal as the social media platform began supporting NFTs.
  • Instagram: Instagram, Facebook’s sister company, which had been working on a feature that would enable fans to use NFTs as their profile pictures, announced in May 2022 that the platform would begin testing digital collectibles with U.S.-based collectors and creators.
  • Coca-Cola: A Coca-Cola enthusiast recently spent $575,000 on several digital assets, including a virtual jacket (it doesn’t exist in real life). The amount of money the fan spent would have bought 41 fully loaded trucks of Coca-Cola at $1 a bottle.
  • Stella Artois: In 2021, Beer maker Stella Artois launched a campaign to auction fifty rare digital horses that could run on a digital race track in a virtual game where winners would receive ETH in prize money.
Taco Bell: The fast-food company created digital taco-themed collectibles in March 2021 featuring five NFTs sold in batches of five. While the initial NFTs were sold at $1.79, the price later reached nearly $200,000, with the firm poised to receive a portion of the amount in all future sales.

How Large Brands can Enhance NFT Adoption

Right now, it’s clear that NFTs will soon be intricately entwined with digital collectibles as many brands enter the NFT world to launch their collections. While those efforts are a good starting point, they’re not the strategy that will bring home the bread and butter, the same way buying a brand name in the dot-com era isn’t sufficient. Some practical proposals include:

Introduce Smart Digital Collectibles

While the immediate NFT mindset gravitates around digital collectibles, large brands can work to create the correct balance between exclusivity and the availability of their NFTs. Rarity helps to sustain consumer interest since an overabundance could communicate low value.

Additionally, companies can make NFTs more engaging and collaborative by leveraging their programmability or integrating community features into their collections. The latter has helped sustain the interest levels and value surrounding the Bored Ape Yacht Club (BAYC).

Integrate NFT Collection with a Brand’s Core Products

Instead of trying to thrive in the business of creating and selling NFTs, companies could enhance NFT adoption by integrating their NFTs with their brand identity. An excellent example for companies that manufacture physical products would be giving away physical products tied to a digital NFT collectible.

Rather than lament the consumerization of the emerging Web3 technology, Instagram has announced plans to strengthen its NFT connection with its services in small ways. The social media app plans to support popular Web3 crypto wallets like Metamask so users can plug in their wallets to showcase and prove ownership of their NFTs.

The image-sharing app has proposed adding NFT filters that enable creators and collectors to share their content in stories and make it possible for NFTs to become virtual, more accurate, and tangible. And just like Twitter did with their hexagonal NFT profile pictures, Instagram won’t charge users to post and share NFTs. With over one billion active users, the decision by Instagram could easily create a rush of the cultural visibility of NFTs and a possible post-to-earn model for content creators to promote and market their works of art.

Earnest Adoption and Experimentation

Since the marriage between NFTs and businesses is a new kid on the block, the only way brands can know what works and what doesn’t is through experimentation to separate the chaff from the wheat. Similar to the transition from Web1 to Web2, wading through the waters of the emerging Web3 may appear a daunting task initially, but orienting themselves with metrics that better illuminate a future world where NFTs can anchor existing products and experiences will help drive their adoption.

How Brands Can Facilitate NFT Copyright Enforcement

As large firms look for ways to promote their brands within the still murky waters of NFTs, issues of counterfeit NFTs have begun to emerge. A case in mind is Nike vs. StockX over the genuine owner of sneakers. As the industry struggles to deal with copyright infringement in an arena where there are no specific laws as far as NFTs are concerned, some tangible proposals that could help include:

Clear Intellectual Property Contracts

Brands could create employment contracts explaining explicitly who between the company and NFT creator does what as far as the creation and sales of NFTs go. The contacts could also lay down the terms regarding ownership rights to NFTs and intellectual property.

Use New Emerging Platforms

Companies can consider exclusively using new platforms with AI-enabled tools that can flag counterfeit NFTs. Such platforms are armed with tools that can quickly analyze texts or images for the slightest resemblance and remove listings infringing on copyright before consumers can acquire them.

Engage with Consumers

Last but not least, brands could communicate with their loyal NFT consumers and tell them where to obtain genuine NFTs. The restriction of distribution sites for NFTs to specific platforms could allow brands and artists to have a form of control until copyright laws finally catch up.

Planning for Future NFT Growth

Today’s businesses exist in a world where NFTs are significantly impacting a world that’s digitally empowered by consumerism. The last two years have seen an incredible explosion of NFTs in a $35 billion market projected to reach $80 billion by 2025. Large brands like Adidas, Nike, Twitter, and Instagram have jumped headfirst into the world of digital goods.

The rapidly evolving NFT space may be filled with complexities. Still, creators, collectors and brands can pool their efforts to promote the introduction of guidance, regulation, and protections that will enable them to enjoy and profit from this emerging medium in the most unexpected ways. While their efforts could take a little more time, there’s already overwhelming evidence that their growing pains will eventually deliver the jackpot.

Let's Build the Future of Technology Together

Let our team provide you with a no-cost, no-commitment technical proposal for your next development project:
Get a free Technical Proposal

ABOUT

Blog

Want to join Gigster?

Ready to get started?
Start Your Next Project Now
No commitment expert consultation
Join Gigster

© 2022, Gigster LLC. Terms & Privacy

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram