A Non-Fungible Token (NFT) is a digital registration of a unique item, thus indivisible by nature. But, a work of art is much more than a binary relationship between an individual and the work. Each art piece has multiple levels of legal rights associated with it even if it is registered as an NFT, and buyers should be aware of all these legal obligations once they engage in NFT trading.
We solve this problem by introducing LORTs - License Ownership Right Tokens. Each NFT is split into LORTs, which represent tokenized license rights. We call this construct NFT-PRO. Every creator of an NFT-PRO defines how many LORTs an NFT-PRO is split into, which license rights are embedded into that artwork and how many LORTs represent a certain license right.
Thanks to this new standard, collectors won’t be buying an art piece without understanding what they will actually own. Now they will own clearly defined license rights depending on how many LORTs of an NFT-PRO they have bought. These LORTs are placed in cAMMs and available for trading, while having constant automated liquidity.