> but if that content looks anything like the original asset, they're liable to get sued for copyright infringement.
I am thinking something more along the lines of a game that supports in-game mods for it. There is nothing limiting you to use the original asset; you just need proof of ownership to give access to a different functionality. I have no idea how this would work across developers and with copyright, but there are real scenarios right now that would love to use proof of ownership or for mods.
It may be the case for Ubisoft. However, some NTFs include the IP rights. For example, if you bought a Bored Ape NFT, you'd have the rights to use that Ape any way that you want. You can license it out for a Cartoon. Movie or Comic Book. Sell T-shirts, etc.
Which surely exists separately from the blockchain in conventional contract law?
An NFT can't "include" IP rights. A notice on a website where you buy it might have a grant of contract rights.
Once again - the blockchain adds nothing or very little in return for a ton of technical complexity.
You could purchase a custom illustration for $5 from Fiverr that would look better than a generated ape, be more suitable for your use case, and also comes with full rights.
Certainly not. The assets are owned by the game developer. The NFT is just a receipt that you paid for them.
I suppose another developer can read that receipt and offer you some content in their game, but if that content looks anything like the original asset, they're liable to get sued for copyright infringement.