Project sued for making Magic card NFTs

A project named mtgDAO created a community around opportunistic fans who thought they could recreate the famous card game, Magic: The Gathering (MtG), with NFTs.

The project created NFTs of MtG cards on the blockchain and aimed to launch a full version of the game without the original company’s consent.

The creators of MtG, Wizards of West Coast (WoWC) have sent a cease and desist letter to mtgDAO and the project appears to be in shock.

Magic: The Gathering is a large collectible card game that has been around for more than 20 years. Millions of these cards have been printed and global tournaments take place every year to battle collections against each other. The cards have different levels of rarity and some can be sold for hundreds of thousands of dollars each.

MtgDAO believed they could improve this large-scale game by fixing the rarity of the physical cards with NFTs on a blockchain marketplace.

The DAO dislikes the original physical version due to the secondary market sales which has skewed the valuation of specific cards with reprints.

Fans of NFTs and MtG were excited to be the first to get their hands on these potentially valuable cards. Unfortunately, the creators of mtgDAO do not understand how copyright laws work and are facing a legal battle.

The mtgDAO whitepaper clearly states they were not working with WoWC when recreating the product.

They believed in the long run they would be able to buy the brand from WoWC with revenue generated from the NFTs. The project’s creators truly believed WoWC would not have jurisdiction to sue mtgDAO for copyright.

As blockchain technology progresses the level of knowledge required to launch blockchain based products has dropped significantly.

This has increased the number of projects being created by individuals or small teams who do not understand basic business.

This lack of knowledge has been proved just recently as there was a DAO which purchased an NFT of the original Dune book and believed they owned the rights to the entire franchise.

It is only a matter of time before more copyright claims are filed against creators of NFTs for using various corporation’s intellectual property.

OpenSea marketplace is currently filled with all sorts of copyright infringements including Disney and Marvel characters.


Updated: 02/16/2022 — 16:00