In the News: Copyright Infringement by NFTs; Anti-Price Gouging Regulations; and Livestreaming Regulations

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NFT Copyright Infringement

Recently, the Hangzhou Internet Court heard and published its decision on the first NFT copyright infringement case in China. The specialized court offered guidance on how copyright law is applied to NFTs as well as the duties of NFT marketplaces in verifying an NFT seller's ownership of the copyright in the underlying digital work.

The plaintiff, as the copyright owner of an illustration, brought a claim against NFT marketplace  Bigverse for contributory copyright infringement alleging it allowed a user to create and sell an NFT digital work that was identical to the copyrighted illustration. The court decided in favor of the plaintiff, holding that the defendant contributorily infringed the plaintiff's right of information network dissemination. Importantly, the court stated that NFT platforms are under a heightened obligation to prevent copyright infringement because (i) the failure to ensure proper ownership would undermine trust and confidence in NFT transactions; and (ii) NFT platforms receive profits in the form of gas fees, transaction fees, and commissions on NFT transactions.