Minting Golden Tickets: What Ancient Wisdom Tells Us about Selling NFTs

By now, even if you don’t know how an NFT works, you probably at least know what an NFT is. “NFT” stands for “non-fungible token.” NFTs are NBA video highlights, MLB trading cards, cats, Garbage Pail Kids, and — yes, you guessed it — NFTs are possibly even “securities” as defined under the Securities Act of 1933. (Bear with me.)

Under the hood, NFTs are cryptographically encrypted digital assets that are “minted” and publicly identifiable on a blockchain network. In its simplest form, each NFT grants a non-exclusive license to use or display digital content for non-commercial purposes. An NFT can generate huge revenues. Amidst the recent crypto-craze, for example, NBA Top Shot has amassed nearly $570 million all-time sales (according to CryptoSlam).

Because almost every celebrity and public figure is developing NFTs, the market is becoming more competitive. NFT developers are manufacturing new and creative ways to make NFTs more appealing — something beyond a hanging on a digital wall. The goal is to transcend NFTs from the digital world and create real world utility and purpose.

For example, in March 2021, rock band Kings of Leon released their latest album, When You See Yourself, as part of an NFT offering called “NFT Yourself.” Each NFT grants typical licenses to various exclusive versions of the album as well as digital artwork. But a small handful of NFTs contain something more: a golden ticket. Lifetime access to front-row seats at any Kings of Leon concert in the world! 

Virginia Joins California in Consumer Rights Protection

Enhanced data privacy rights are coming your way. The Europeans started it with the GDPR in 2018, followed soon thereafter by California’s California Consumer Privacy Act (CCPA).

As businesses focused on GDPR and CCPA compliance, California voters passed an initiative and a new law known as the California Privacy Rights Act (CPRA) that takes effect January 1, 2023.

The newest kid on the block is Virginia, with Governor Northam signing into law the Virginia Consumer Data Protection Act (CDPA) on March 1, 2021. It takes effect the same day as the CPRA — January 1, 2023. 

Not many were paying attention as the CDPA flew through the Virginia Legislature, passing by overwhelming margin in fewer than two months. Similar privacy legislation has been introduced in other states including Washington, Colorado, Connecticut, and Minnesota.  

What are the implications of the CDPA and how is it different than the CCPA or CPRA? 

The Virginia law differs from the California approach and adds a few operational challenges for businesses, including:

• A broader affirmative consent or opt-in requirement to process sensitive personal data. 
• A broader opt-out right of processing personal data that covers not only sales of personal data, but also targeted advertising and profiling decisions that produce legal or similarly significant effects.
• Similar to the GDPR, mandatory data protection assessments are required for sales, targeted advertising, and profiling, including profiling that presents a reasonably foreseeable risk of unfair or deceptive treatment. 
• The roles of controllers and processors are defined with specific processor role-based requirements and obligations to provide assistance to and adhere to the controller’s instructions and to demonstrate compliance with processor obligations. 

An entreVIEW Post From the State of Hockey

Pavlov has his bell, and ESPN has this! At last, after a 17-year absence, that musical masterpiece will again grace the airwaves in the homes of hockey-crazed Americans across the country. 

This March, it was announced that the little brother of the “Big Four” would be re-joining its much larger brethren at the “Worldwide Leader in Sports” under a new seven-year deal. The deal gives the Walt Disney Co., the parent company of ESPN, the rights to certain NHL events and games, spread across traditional television and the ever-growing streaming platforms. Included will be 25 regular-season games on ESPN or ABC, early-round playoff series and one conference final each year, four Stanley Cup Final series on ABC and more than 1,000 games per season streaming on ESPN+. In addition, ESPN+ and Hulu will be home to 75 ESPN-produced exclusive telecasts per season. The NHL has also struck a deal with Turner Sports for the “B Coverage” — here’s to hoping the NHL can get Charles Barkley to take a respite from "Inside the NBA" to cover a few hockey games.