#NFT s are often exclusively associated with digital artworks, and it's not always clear why people would spend thousands or even tens of thousands of dollars on them. However, the potential applications of NFTs are steadily increasing and can completely disrupt established business models such as licensing or franchising.
An example of this is the innovative business model of the Bored Ape Yacht Club (#BAYC), specifically the "MADE BY APES" model by Yuga Labs. By issuing 10,000 BoredApeYachtClub NFTs, YugaLabs also transferred the IP rights to the owners, giving them the economic exploitation rights to the artworks. But BAYC goes even further and has launched a licensing program where NFT owners can use their NFTs as brands for their own products and services, supported under the label "madebyApes".
At its core, the Made by Apes program serves as a catalyst for NFT holders, granting them a broad license to utilize the art associated with their BAYC or MAYC NFTs for personal and commercial endeavors. Whether creators seek to adorn physical merchandise or embark on digital ventures, the program offers a gateway to explore the full potential of their digital assets.
Central to the program is the Made by Apes logo, a symbol of authenticity and endorsement for licensees. By displaying this logo alongside their projects, creators signal their affiliation with the program, reassuring consumers of the legitimacy of their offerings.
Currently, BAYC has issued more than 350 licenses related to the corresponding NFTs.
This example illustrates that the use of NFTs as sub-brands would require a significant rethink, especially for established brands like McDonald's, Porsche, or Hugo Boss. These brands traditionally use licensing for specific products or services, such as Porsche glasses or Hugo Boss perfumes. But the idea that these brands could create and then use NFTs as sub-brands, which would be purchased by licensees to establish their own products under these sub-brands, represents a radical departure from established licensing structures.
Nevertheless, this scenario demonstrates the disruptive potential of blockchain technology and its ability to enable new business models. It highlights how NFTs can represent not only digital artworks but also serve as fundamental building blocks for the creation and trade of brands and intellectual property