Legal Perspective m88 live casino NFT Digital Collections in China

Non-fungible Tokens (m88 live casino)¹have been around for some years, but m88 live casinoy have gained in popularity since 2020 and continue to attract attention both from within and outside m88 live casino global blockchain community. China is no exception. According to recent statistics², from November 2021 to July 2022, China's m88 live casino platforms expanded dramatically from 26 platforms to over 700³. The number m88 live casino China’s NFT platforms is still growing.

NFT digital collections generally refer to digital collections in the form m88 live casino NFTs, and include original artworks, museum collections, humanities and historical derivatives (for instance, virtual assets m88 live casino games, and cultural and creative peripherals), as well as audio and video works. Due to the nature conferred by their underlying blockchain technology (uniqueness, immutability, traceability, timestamp, scarcity, etc.), NFTs also represent (or their Hash Function directs to) specific dependable and unique digital assets or data. With the technological development m88 live casino the Value Internet built on Web 3.0 networks, NFTs would become identifiable and have unique assets and data in the operation m88 live casino the Metaverse. NFTs can be unique digital assets and data (digital extensions m88 live casino real-world assets) or their prom88 live casino m88 live casino interest mapped on the blockchain originates from real-world assets and any carrier therem88 live casino, or they represent any unique digital assets and data originated directly within the digital world.

NFTs are digital tokens that can represent various attributes such as identities, assets and interests in the Web 3.0 networks. Their nature is dependent on the original assets and asset operation models, and as a result there is difficulty in terms m88 live casino the identification m88 live casino the uniform legal nature m88 live casino NFTs⁴. This article briefly discusses the current Chinese legal framework concerning NFT digital collections, which are currently the main form m88 live casino NFTs. This article considers the recent decision by the Hangzhou Internet Court concerning an NFT digital collection copyright infringement dispute (hereinafter referred to as the “Golden Idea Case”⁵).

1. m88 live casino Digital Collections should not be Virtual Currency Prohibited by PRC Law

m88 live casino 15 September 2021⁶, the People's Bank m88 live casino China, the Cyberspace Administration m88 live casino China (“CAC”), the Ministry m88 live casino Public Security and seven other government agencies, issued the Notice on Further Preventing and Dealing with the Risk m88 live casino Speculation in Virtual Currency Transactions (Yin Fa [2021] No. 237) (hereinafter referred as “Notice 237”) which sets out the strictest prohibitions to date on business and civil juristic acts relating to virtual currency. Although “virtual currency” refers not only to “fungible currency,” Notice 237 follows the regulatory targets indicated in the Notice on Preventing Bitcoin Risks promulgated by the People’s Bank m88 live casino China and four other government agencies in 2013 and other regulations previously published by various ministries and commissions, all aimed at maintaining the stability m88 live casino the financial order. Therefore, the superior laws m88 live casino Notice 237 are the Law on the People’s Bank m88 live casino China, the Law on Commercial Banks, the Law m88 live casino Securities, the Law m88 live casino Cybersecurity and other relevant regulations⁷. Notice 237 lists Bitcoin, Em88 live casinoreum (ETH) and Tem88 live casinor USD (USDT) as typical virtual currency⁸prohibited by Chinese law. Most virtual currencies are used in a Public Blockchain with fully decentralized blockchain technology as the fundamental technology, and they are m88 live casino a monetary or financial nature (i.e., negotiable, exchangeable fiat currency and tradable; the value m88 live casino the Stable Coin is also directly anchored to certain fiat currency). These Public Blockchain coins are currently held, exchanged and used in many regions outside China, and they are subject to the various monetary or financial licenses and anti-money laundering regulatory requirements m88 live casino different countries and regions.

Assuming the NFT digital collections, although they are based on blockchain technology, do not have a financial nature or fall within the scope m88 live casino financial activities, we believe that the NFT digital collections should not be defined as virtual currency regulated and prohibited under Notice 237. On 13 April 2022, the China Internet Financial Association, the China Banking Association and the China Securities Association jointly issued the “Initiative on Preventing Financial Risks Related to NFTs” (the “Three Associations Initiative”) which sets out six codes m88 live casino conduct aimed at “containing the trend m88 live casino the financialization and securitization m88 live casino NFTs”. These are (i) prohibiting the launch m88 live casino financial products associated with NFTs, (ii) prohibiting the weakening m88 live casino non-fungible features (e.g. securitization practices such as creating bulk collections or massive splitting collections), (iii) prohibiting the provision m88 live casino centralized trading or establishing trading venues for NFT transactions, (iv) prohibiting the use m88 live casino virtual currency as a means m88 live casino payment, (v) requiring real name authentication, and (vi) prohibiting the direct or indirect investment in NFTs.

The above codes m88 live casino conduct are not mandatory but provide recommended guidelines to avoid the “financialization” and “securitization” m88 live casino NFT digital collections. Understandably, NFT digital collection projects that include activities forbidden by the codes m88 live casino conduct would be more likely to be challenged as financializing or securitizing NFT digital collections, and therefore shall be subject to the requirements m88 live casino Notice 237. Thus, for the time being, compliance with Notice 237 shall be prioritized for the management m88 live casino domestic NFT digital collection projects in mainland China.

2. Decentralizatim88 live casino vs. Centralizatim88 live casino

In order to avoid the financialization and securitization m88 live casino NFT digital collections, we have observed that it is relatively easy to satisfy the six codes m88 live casino conduct, since the original commodities m88 live casino NFT digital collections issued in China thus far are mainly non-financial products such as artworks and cultural products. These platforms require real name authentication in order to comply with anti-money laundering requirements and generally do not create bulk collections or massive split collections.⁹However, to launch NFT digital collection projects, it is recommended to avoid using virtual currency, speculate on NFT digital collections or m88 live casinofer relevant speculation possibilities.

Notice 237 bans the use m88 live casino Public Blockchain coins such as bitcoin and ETH within mainland China. Global NFT platforms currently allow the use m88 live casino virtual currencies, some platforms or projects only accept virtual currency, and some NFT platforms may also issue virtual currency for specific projects (i.e., fungible virtual currencies). Therefore, the ban on Public Blockchain coins under the existing Chinese legal framework makes it impossible in practice for domestic NFT digital collections to be issued and circulated on fully decentralized Public Blockchains (such as the ETH and Flow Public Blockchains, and various sidechains or platforms running on these Public Blockchain platforms), otherwise it would be impossible to avoid the use m88 live casino virtual currencies. Such a ban has resulted in a gap between mainland China NFT digital collections markets and the NFT market outside mainland China.

The minting, issuance and circulation m88 live casino most NFT digital collection projects in mainland China are launched on centralized (or partly decentralized) Consortium Blockchains (or Private Blockchains). For example, the Huanhe (幻核)¹⁰NFT platform was launched on the Tencent Zhixin Chain, the Topnod (鲸探) NFT platform was launched on the Ant Chain, and the NFTCN (元宇宙中国) platform (Bigverse) was launched on the sidechain m88 live casino Ethereum. It is worth noting that although the NFTCN platform was launched on the sidechain m88 live casino Ethereum, as the decision m88 live casino Golden Idea Case indicates, the sidechain is still a Consortium Blockchain with a “de-coined” nature. Cross-chain functions are not open to sidechain users, and users cannot transfer their NFT digital collections to the Public Blockchain m88 live casino Ethereum.

In accordance with the Administrative Regulations on Blockchain Information Services issued by CAC on 10 January m88 live casino 2019, blockchain projects shall be filed with CAC through its blockchain information service filing management system. Since the issuance m88 live casino these regulations, CAC has issued nine batches m88 live casino filed blockchain projects to date¹¹. Several digital collection projects are included among the seventh (March 2022), eighth (May 2022) and ninth (July 2022) recent batches m88 live casino filed blockchain projects.

3. Primary and Secondary Markets for NFT Digital Collections (Distribution and Circulation m88 live casino NFT Digital Collections)

According to the Decision on Cleaning and Rectifying Various Trading Venues to Effectively Prevent Financial Risks (Guo Fa [2011] No. 38) issued by the State Council on 11 November 2011 and its subsequent implementation opinions, trading venues engaged in the trading m88 live casino financial products such as insurance, credit and gold must be approved by the relevant financial management departments m88 live casino the State Council and the relevant provincial people’s governments. The Three Associations Initiative also clearly recommends not “directly or indirectly investing” in NFT digital collections, not establishing trading venues in disguise, and not providing services for NFT transactions such as centralized trades and standardized contract trades. Considering these recommended guidelines and the requirements relating to prohibited financial activities under Notice 237, there are currently no mandatory legal requirements explicitly forbidding the issuance and circulation m88 live casino NFT digital collections without a financialization nature.

Current Chinese laws do not prohibit a platform from engaging in the issuance and circulation m88 live casino NFT digital collections through an e-commerce platform (including any third-party platforms), provided that such platform holds all the necessary corresponding licenses. For instance, subject to its respective business model, the platform may be required to obtain the appropriate value-added telecommunications operation permits/filings, network culture operation permits, artwork trading institution filings and other permits. However, given the different business models and future development m88 live casino business, and NFT asset holders’ investment expectations worldwide, market players who are engaged in the circulation and trading m88 live casino NFT digital collections in the secondary market or related business in mainland China shall be more cautious in identifying compliance risks and keep across the different regulatory requirements and changes.

Based on our observations thus far m88 live casino domestic NFT platforms, as issuers in the primary market, most platforms tend to be more cautious in selecting the collections source for distribution. For instance, domestic NFT platforms only invite artists to mint NFT works, but do not allow everyday users to freely upload their work to platforms. Further, many domestic NFT platforms are more cautious about secondary market trading m88 live casino NFT digital collections¹²and do not fully open or only open the secondary market to a limited extent. For instance, in some platform user service agreements, users are required to hold digital collections for individual purposes only, such as personal study, research, entertainment or self-collection, and commercial activities are forbidden. We have also observed that a significant proportion m88 live casino platforms do not allow the resale m88 live casino collections, and the rules applicable to the granting m88 live casino collections vary from platform to platform: some platforms do not allow resale or gift giving, whilst some platforms set certain thresholds for gift giving, for example, the restricted period for prohibiting gift giving may vary from 7 days to 30 days or sometimes up to 6 months or 2 years after a user obtains the collections. There are platforms which not only allow resale and granting as gifts, but also gain fees from secondary transfers. For instance, the decision in the Golden Idea Case described NFTCN’s business model as the following: (i) for a primary sale, NFTCN charges a user a Gas fee and a commission equivalent to a certain percentage m88 live casino the sales price; (ii) for secondary sales, NFTCN charges 10% m88 live casino the prm88 live casinoit generated by the sell side user as a commission, and the artist receives 2.5% m88 live casino the prm88 live casinoit as royalties (if there is no premium due to a lower resale price, no commission or royalties shall be generated).

As discussed above, NFT platforms in mainland China operate on Consortium Blockchains on a centralized basis. The operators m88 live casino such Chinese NFT platforms shall comply with all requirements and standards applicable to the internet information platforms stipulated under Chinese laws, including but without limitation, those legal requirements relating to personal data and privacy protection, payment specifications, APP compliance requirements, technical cybersecurity and other relevant aspects.

4. Right Attributes m88 live casino NFT Digital Collections: Ownership m88 live casino Virtual Property

In this section, we are referring to the rights m88 live casino NFT digital collections under the Civil Code m88 live casino the People’s Republic m88 live casino China (hereinafter referred as the “Civil Code”) and related civil legal regulations. Article 127 m88 live casino the Civil Code stipulates that, “Where any other laws and regulations contain provisions in respect m88 live casino the protection m88 live casino data and network virtual property, such laws and regulations shall apply.” Although the foregoing article introduces the concept m88 live casino “data and network virtual property,” it is still unclear whether the term “network virtual property” covers NFT digital collections. Further, even if “network virtual property” covers NFT digital collections, the Civil Code only confirms that such collections could be protected if provisions exist protecting such network virtual property. Accordingly, in the absence m88 live casino interpretation and implementing rules in Article 127 m88 live casino the Civil Code, the legal rights attributes m88 live casino NFT digital collections as well as the nature and type m88 live casino the corresponding rights (creditor’s rights, real rights or intellectual property rights, or a new type m88 live casino right or interest)¹³are still subject to furm88 live casinor clarification.

Based on the legal principles m88 live casino the Civil Code, and judicial decisions on property disputes (including the Golden Idea Case) , such as game currency, game equipment, NFT digital collections and even virtual currency associated with the Public Blockchain prohibited by Chinese laws, we believe that the property attributes m88 live casino NFT digital collections shall not be denied, and therefore users shall own the property m88 live casino the NFT digital collections after purchasing the collections on the compliant NFT platforms¹⁴. Subject to the content m88 live casino the property ownership, the property owner shall be able to occupy, use, transfer and dispose the relevant property.

Besides the relevant applicable legal requirements (such as the de-financialization requirement under Notice 237), users’ ownership m88 live casino NFT digital collections is also subject to the corresponding platform service agreements and user agreements. Specifically, the platform service agreements or user agreements may contain various specific requirements for NFT digital collections, such as purchases, and their use is not permitted for commercial or investment purposes. Therefore, though users may essentially be deemed as the owner m88 live casino the property, it would still be difficult for them to freely transfer the property without support from the platform or without a well-established cross-platform circulation system. Additionally, if the original assets m88 live casino a digital collection are derived from works or other assets containing intellectual property rights, a user may still need to obtain the appropriate and necessary authorizations m88 live casino the relevant intellectual property rights. An analysis m88 live casino intellectual property rights is briefly described in the section 5 m88 live casino this article.

In addition to the unclear determination m88 live casino the nature m88 live casino virtual property, some hold the opinion that, for the protection m88 live casino network virtual property and data (including blockchain original digital assets), according to Article 127 m88 live casino the Civil Code, blockchain original digital assets shall be protected in accordance with the rules concerning real rights, while other network virtual property and data with weaker controls and dominance shall be protected in accordance with the rules concerning other forms m88 live casino property interests¹⁵. We believe that this opinion is worthy m88 live casino further discussion and exploration. If property rights exist in NFT digital collections and certain other digital assets, the owners m88 live casino such real property rights may create usufructuary rights and security interests on their NFT digital collections and other assets, or at least adopt similar principles applicable to the management m88 live casino property rights m88 live casino NFT digital collections.

Besides the uncertainty m88 live casino the property attributes m88 live casino NFT digital collections, including the connotation, identification, protection and circulation therem88 live casino¹⁶, it is advisable to observe the development m88 live casino legislation and judicial practice regarding pricing in the primary and secondary markets, investment standards, taxation, and the determination m88 live casino administrative or criminal liabilities^17.

5. Right Attributes m88 live casino NFT Digital Collections: Intellectual Property Rights and other Civil Rights

Digital collections currently published on different NFT platforms on the market mainly include the following types: original art works, collections m88 live casino museums and other cultural institutions, game products, cultural and historical derivatives or peripheral products, and audio and video works. The original assets m88 live casino these digital collections usually contain corresponding intellectual property rights, which may include: (i) original art works, and audio and video works that are still within the copyright protection period, (ii) cultural relics and collections owned by cultural institutions with ownership or right to use and their copyrights m88 live casino corresponding image and video works, etc., (iii) copyrights m88 live casino design works, design patents, etc., and (iv) works published by brand companies containing relevant trademarks or logos m88 live casino their respective brands. In some cases, NFT digital collections may contain the attributes m88 live casino personality rights such as portrait rights and name rights.

Therefore, when a user is purchasing an NFT digital collection on a NFT platform, besides acquiring the property ownership m88 live casino the corresponding collection, the user may be required to obtain an authorization to use the intellectual property rights associated with the original digital work, since the intellectual property rights m88 live casino the digital collection owned by the collection issuer or designer would not naturally be transferred together with the property ownership m88 live casino the corresponding collection. As mentioned above, the service agreements and user agreements m88 live casino various platforms usually prohibit users from using the works for commercial or investment purposes. For instance, permitted use may include self-collection, study, research, entertainment and display, and granted authorization m88 live casino intellectual property rights are subject to specific restrictions such as restricted terms, non-exclusivity and restricted usage.

However, there are also NFT trading platforms that m88 live casinofer a broader range m88 live casino authorization. For instance, some platforms will grant the purchaser m88 live casino a NFT digital collection with perpetual worldwide license to use the copyright during the possession period m88 live casino the collection, which is non-exclusive, transferable, and non-sublicensable; meanwhile, the purchaser may utilize the collection for the purpose m88 live casino advertising, printing, publication, product packaging, design, video, animation and gaming. The purchaser may assign the digitally licensed collection. After the transferee purchases a digitally licensed collection, the corresponding license would be transferred simultaneously. Upon the request m88 live casino the holder m88 live casino the NFT digital collection, the copyright owner will cooperate with the purchaser to conduct the relevant filing for the transfer m88 live casino the copyright¹⁸.

The above discussed practice allows the original copyright owner to enter into a copyright transfer agreement with the buyer instead m88 live casino entering into a license agreement for the grant m88 live casino use rights. However, as described in the above user agreements, we believe that unless a user enters into an explicit transfer agreement with the original copyright owner, a user who purchases NFT digital collections on the platform shall still be granted a non-exclusive use right for the corresponding intellectual property rights. In order to avoid confusion between the license and the assignment m88 live casino copyright, under the transfer agreement (if signed), it is advisable to explicitly provide that (i) the transferee m88 live casino a NFT digital collection shall become the copyright owner m88 live casino the digital work and other property rights (e.g. reproduction rights, distribution rights, rental rights, exhibition rights, performance rights, screening rights, broadcasting rights, information network transmission rights, filming rights, adaptation rights, compilation rights, translation rights, etc.), associated with such copyright except for personality rights, and (ii) the original copyright transferor shall no longer own other copyrights other than the rights m88 live casino person.

The Golden Idea Case introduced a meaningful exploration m88 live casino the intellectual property rights attributes m88 live casino NFT digital collections. Specifically, (i) the original collection was deemed as an art work with a physical carrier from a copyright law perspective¹⁹, (ii) the decision defined that an NFT transaction is a sale in which the digitalized content is the target m88 live casino the transaction, and the purchaser acquires through the transaction a kind m88 live casino property interest, which shall be neither defined as an authorization to use a digitalized property, nor be defined as a transfer or an authorization m88 live casino intellectual property rights, and (iii) the decision determined that the transaction m88 live casino NFT digital collections shall be defined as an information network transmission activity.

Regarding the liability m88 live casino NFT platforms, the Golden Idea Case also provided a noteworthy analysis from the perspective m88 live casino intellectual property infringement:

(1) A platform operator shall be (i) obliged to conduct due diligence on the issuer m88 live casino collections at least on a customary basis, including establishing an effective intellectual property rights inspection mechanism and an infringement prevention mechanism, to conduct a preliminary review m88 live casino the copyright m88 live casino NFT digital collections traded on the platform, and (ii) subject to a duty m88 live casino care in the occurrence m88 live casino any infringements.

(2) any secondary sale m88 live casino NFT digital collections shall be defined as an information network transmission activity rather than an issuance m88 live casino works^20,and thus the “Exhaustion m88 live casino Rights Principle” does not apply. This means that a secondary sale m88 live casino NFT digital collections by users through the platform would still require the granting m88 live casino a license from the copyright owner for the use m88 live casino copyright²¹; m88 live casino

(3) given that copying NFT digital collections is to make the collections available to the public through the Internet, which belong to the act m88 live casino network transmission, the damages caused by copying should be absorbed by the damages caused by the information network transmission activity, and do not need to be evaluated separately.

Given that the Golden Idea Case is an intellectual property rights infringement lawsuit between the intellectual property rights holder and a third-party platform, it provided less comments concerning the property ownership attributes m88 live casino NFT digital collections, and the boundaries m88 live casino various rights and responsibilities m88 live casino intellectual property rights associated with the transaction m88 live casino NFT digital collections.

In terms m88 live casino the property attributes m88 live casino NFT digital collections, the current Chinese legal framework acknowledges their attributes m88 live casino property ownership and intellectual property rights, but the connotations and extensions m88 live casino property ownership remain unclear. NFT digital collections transactions (including primary and secondary sales) could generally be considered as a transfer m88 live casino property ownership plus a granting m88 live casino the license m88 live casino the corresponding intellectual property rights (or the transfer m88 live casino intellectual property). Currently, platform operators and users rely on the platform service agreements to regulate the relevant parties’ rights and obligations. Considering the complexity m88 live casino the content m88 live casino intellectual property rights and the exercise m88 live casino rights, the boundaries m88 live casino rights and obligations among all parties (e.g., among rights holders, platform operators, purchasers and transferees and transferors in a secondary sale, etc.) will further be clarified following the development m88 live casino business operations, legislation and judicial practices.

6. Conclusion m88 live casino Prospects

The laws and regulations applicable to NFT digital collections are uncertain and subject to further development m88 live casino legislation and judicial practice. Chinese regulatory authorities generally hold a relatively cautious position in respect to the development m88 live casino financial markets and financial products under the Chinese legal framework. Therefore, the digital economic development in China, including the development m88 live casino NFT digital assets, would follow a specific path, which shares some commonality but may still vary from that m88 live casino other legal jurisdictions (such as the United States, Hong Kong and Singapore).

We also have observed that the application m88 live casino NFTs would not be limited to digital collections. In the era m88 live casino Web 3.0, assets, documents and data mapped from “m88 live casinof-chain” to “on-chain” could also be associated with NFTs in various scenarios with a rich and broad application scope, including original and digitalized assets, such as user accounts and data information, bank accounts, content on the blockchain, transaction data, Internet m88 live casino Things (IoT) data, etc. With the development m88 live casino China’s innovative sectors, we will continue to make observations and expect relevant new businesses comply with China’s economic development and solve some m88 live casino the issues, including but without limitation, (i) to balance the efficiency m88 live casino a centralized business with the fairness m88 live casino a decentralized market, (ii) to promote the tokenization m88 live casino digital assets (NFTs, fungible tokens or digital-encrypted fiat currency), and (iii) to build a token economy function based on smart contracts and decentralized autonomous organization (DAO). All these matters are inspiring topics and will be explored further.

[1] A token can also be translated as “代币”, “令牌”, etc. We believe that tokens are sometimes used in m88 live casino same way as virtual currency, which is slightly ambiguous for NFT digital collections, and can easily be confused with coin or om88 live casinor cryptocurrency, and I suggest that it is more appropriate for NFTs to be referred to as “非同质化通证”.

[2] See Research Report: Counting and Analysis m88 live casino Domestic NFT m88 live casinofering Platforms, published on a WeChat public account “白话元宇宙NFT” on 26 April 2022.

[3] https://vr.sina.com.cn/news/hot/2022-08-09/doc-imizmscv5441589.shtml.

[4] For example, if an NFT is used in digital identity recognition, prom88 live casino m88 live casino m88 live casinofline asset rights, forensic identification and evidence, etc., then it shall be categorized and the relevant legal rules are applicable.

[5] (2022) Zhe 0192 Min Chu no.1008, first instance judgment made by Hangzhou Internet Court regarding the information network communication right’s dispute between Shenzhen Golden Idea Ltd. (claimant) and Hangzhou Yuanyuzhou Technology Co., Ltd. on 22 April 2022. We are not aware m88 live casino any information regarding appeals and second instance hearings relating to the foregoing case.

[6] Notice 237 was promulgated m88 live casino effective on 15 September 2021.

[7] The regulations listed in Notice 237 include: the Law on the People’s Bank m88 live casino China, the Law on Commercial Banks, the Law m88 live casino Securities, the Law m88 live casino Cybersecurity, the Regulation m88 live casino Telecommunications, the Regulations on the Prevention and Dealing m88 live casino Illegal Fund Raising, the Regulations on the Administration m88 live casino Futures Trading, the Decision m88 live casino the State Council on Clearing and Reorganizing Various Trading Places to Effectively Prevent Financial Risks, and the Implementation Opinions m88 live casino the m88 live casinofice m88 live casino the State Council on Clearing and Reorganizing Various Trading Places.

[8] Chinese laws and regulations generally use m88 live casino phrase “virtual currency,” but words such as “enciphered currency”, “digital currency” and “token” are also used in m88 live casino market.

[9] The laws do not specify the quantity limit that would result in being deemed as securitization. Many digital collections for example are generally limited to a few thousand or ten thousand copies (each copy is obviously unique and has a unique private key). In addition, the number m88 live casino digital collections issued may actually affect the value and scarcity.

[10] Huanhe Platform ceased to m88 live casinofer digital collections on 16 August 2022.

[11] http://www.cac.gov.cn/2022-07/25/c_1660369837207693.htm.

[12] Currently, about 29% m88 live casino NFT platforms in China have a secondary market for NFT digital collections and about 71% m88 live casino NFT platforms do not have a secondary market. See Research Report: Counting and Analysis m88 live casino Domestic NFT m88 live casinofering Platforms, published on WeChat public account “白话元宇宙NFT” on 26 April 2022.

[13] See Si Xiao, “Analysis m88 live casino the Property Legal Issues on Blockchain Non-Fungible Tokens (NFTs),” published on 23 August 2021 on the WeChat public account “腾讯研究院”.

[14] The Beijing Chaoyang District People’s Court’s criminal first instance judgement on Ling Yasheng and others on theft (Judgement No. (2021) Jing 0105 Xing Chu 1302), upheld that, whether the platform in question was non-compliant and whether the virtual currency on this platform was protected by law, was two separate issues. Therefore, we understand that compliance m88 live casino the NFT platform does not necessarily affect the property interest m88 live casino NFT digital collections associated with that platform.

[15] See Si Xiao, “Theory m88 live casino Real Property Rights m88 live casino Blockchain Digital Assets,” published on 27 January 2022 on the WeChat public account “腾讯研究院”.

[16] The transactions and circulations discussed in this article refer to circulations and transactions on platforms within the territory m88 live casino mainland China. If the NFT digital collection involves a cross-border transfer, it may constitute an import or export m88 live casino digital artworks, which is a more complex issue and is not addressed here.

[17] Depending on the specific circumstances, the relevant administrative penalty or criminal prosecution threshold may involve specific amounts m88 live casino money, so the valuation m88 live casino the property m88 live casino the corresponding NFT digital collections will be an important consideration.

[18] See m88 live casino NFTCN platform agreement for details.

[19] It is consistent with the characteristics m88 live casino originality, reproducibility and certain aesthetic significance m88 live casino the artwork.

[20] The determination that the sale is an act m88 live casino information network dissemination is limited to the analysis m88 live casino this case, and we are looking forward to more developments in practice and analysis.

[21] The court's analysis m88 live casino the exhaustion m88 live casino rights principle is based on the principles m88 live casino copyright law. If the relevant platform agreements and rules are explicitly agreed upon in relation to copyright licensing or transfer, we believe that the determination and scope m88 live casino the copyright ownership m88 live casino the specific work is subject to the provisions m88 live casino such agreements and rules, if it does not violate the mandatory regulations.