
License Terms Attached to IP Asset
The owner of a root IP Asset can attach License Terms to signal to other users that they can mint License Tokens of those terms to create a derivative of this IP Asset. Once License Terms are attached to an IP Asset, it is now considered “public” and anyone can mint a License Token using those terms.
Inherited License Terms
On the other hand, derivative IP Assets inherit their License Terms from the parent IP Asset. This means that when an IP Asset registers itself as a derivative, it burns the License Token and inherits the associated License Terms. The owner of this derivative cannot set new License Terms.You may be wondering: “if I cannot set new License Terms on my derivative, does that also mean I can’t change the minting fee, or disallowing more derivatives, on my derivative?”Thankfully, there is a way to get around this! Although you cannot change License Terms on a derivative IP, you can utilize the License Config to implement special behaviors.
Expiration
License Terms support anexpiration
time. Once License Terms expire, any derivatives that abide by that license will no longer be able to generate revenue or create further derivatives. If an IP Asset is a derivative of multiple parents, it will expire when the soonest expiration time between the two parents is reached.