ILLEGAL is a definitive word.
The licensing you refer to, is it Ceative Commons?
I know of it but also know it has some issues and even creating a split between proponents of it.
REPUTATION in this age I believe is overhyped. SURE an artist that plays the community game will see it as "law" but if crypto gains a much larger audience and people add 'digital assets' but don't play the community game, they would not care much for 'bad rep'. There would be many artists simply using pseudo identities to circumvent that danger. If many play it for money gain only. It's not hard to simply exist as a new identity if the last one had issues.

There's no obligation in these platforms to reveal real world identity or to be attached to only one identity.
So for LEGALITY to be applied, in a world (online) where anyone is an artist and style uniqueness not really a thing anymore.
The possibility for all these issues arising are high. It's actually.. inevitable.

That's my point.
It's not well thought through.
Like many things here.
Critical thinking doesn't seem to be priority.

I'm not against it but I'm sharing my thoughts with you because I think you need to realize the system needs improvement.
I wrote on another comment that there's possibility to use NFT for a lot more that doesn't need licensing and a need for heavy regulation. An on demand creative collaboration platform that could even reach outside of crypto as a service.

The NFTshowroomt is archaic if focused heavily on static imagery. Then when money is involved and "rights" believed to exist, it's a shaky road.

Just like the ambition of a few here to sue big tech over "loss of revenue". It's again not thought through. Crypto is unregulated and they're asking recognition in legal systems. To even proceed the case as recognized valid under law is going to be a major task. ALL projects that make that transition and/or claim need to understand that first. Regulation is what makes all those things like licensing and ownership rights valid in the physical world. Crypto is really a game of gambling in its current form.