What do you really have when you have NFT artwork?

A company that has been in touch with blockchain for many years is still hopeless. From ICOs, STOs, mining farms to NFTs today, friends in the circle meet the person to enjoy a day in the circle and a year out of the circle. In a rapidly changing economy, it's often the trailblazers who emerge from obscurity when the business of law and the real world has emerged, and the boss crumbles and ends. old business model.From the “Financial Security Disclosure and Protection Notice” (abbreviated as “Notice 94”) to the “Virtual Financial” Mining Operation Remediation Notice (collectively “924 Liquidation”), industries Friends recently switched to education due to risk management early last year, but in the middle of that year he suffered a 'double' and scored two goals.

And in 2021, the industry seemed to be springing up for NFTs. Most people want to know more about NFT through Christie's auctioned NFT artwork "Daily: First 5000 Days" ("Daily: First 5000 Days"). The artistic achievements of the artist Beeple are judged subjectively, but the exchange rate of $69.3 million is objectively broken. An industry that has been quiet for some time. Then the NFTs with the blind, collecting, exchanging and other gameplays happen once. As a lawyer, he was also involved in early legislation dealing with NFTs as well as the business cycle.

Interestingly, after contacting several NFT platforms, NFT hosts, hosts and IP parties, each insider has a different understanding of the NFTs they participate in, host and exchange.Sometimes they engage in a discussion with consumers, and after five minutes you will see that all the participants are talking about the same NFT project, but in fact everyone has their own understanding of what engagement and collaboration are. Neither the party nor the defense attorney allege either.

Some think the exchange is to print and download images in JPG format, some think it's virtual license, some think it's legal, some think it's an old work, some think it's a digital collection, some think it's licensed, some think it's an old work. token, some think it is the same copy of the original image ... After all, when the business is actually put into practice, all parties usually do not have a clear legal relationship. .

Legal specs and clear instructions are still pending, but the industry has embraced the excitement, with major titles painted on digital collections to access thousands of homes digitally, from traditional Dunhuang art to landscape art. collection for domestic use. The party came, even amid the flying balls,In accordance with my own law, I would like to share some observations and legal considerations of the NFT. I hope this helps you.

What is NFT

The full name of NFT is usually a non-fungible token (commonly called "non-fungible token") which is created by the makers of other chains (such as Zhixin Chain) as a smart contract model (the current standard is ERC721 ). and ERC1155).), the data is cryptographically useful.

NFTs originated from blockchain technology, where the chain itself can be easily understood by how different functions, changes and presentations of information, and each application are used. The chain is unique, just like department stores and the restaurants. The main channel is divided into public channel and common channel. Public chains are fully decentralized, all participants can read and create files, all participants can download and receive full blockchain data, and can create and submit documents requesting chain separation. usually used. The alliance chain consists of multiple centralized and cohesive organizations of multiple organizations, with each organization or organization managing one or more nodes.

The "heterogenization" of NFTs is relative to the FT (Fungible Token, homogenized token), which means that each NFT is inseparable and unique and that the NFT cannot be a homogenized token like Bitcoin. Since they are split equally, only full NFTs can be created or edited, 0.1 NFTs are not traded. Because of this specificity, most NFTs have no equivalent, but they can be used as special symbols for the metadata they are registered with.

How do I switch to NFT operation?

An NFT is immutable and special data that has no particular value in itself. However, NFT can be used to collect metadata related information such as core metadata, metadata Uniform Resource Identifier (URI), metadata description, etc. . So far metadata has developed a strong and consistent relationship with NFT.

Metadata interface code based on the ERC721 smart contract model

Extending to the well-known and discrete nature of NFT artworks (compliance is often referred to as digital collections, digital artworks, etc.), metadata is the digital form of the artwork.

The workflow is digitally integrated with NFTs to create a class of NFT workflows called Mints in the industry. The molding process is disassembled and disassembled and generally includes the following steps:

First, convert the artwork to metadata.

Second, the metadata is stored in a specialized location.

Third, metadata such as resource information, author information, descriptions, and other information is saved on the NFT.

Eventually, through the casting process, metadata can be used to validate channel metadata by creating a unique channel NFT ID, and graphics can be customized to immerse themselves in new technology one by one. NFT art looks popular on the street.

What do you really get when you have an NFT card?

Through the casting process, the NFT is transformed into an NFT coin due to the coin's "brand". However, although it is called an NFT function, it is important to have only some metadata about the function, and does not necessarily represent a change or modification of the processing policy and preferences itself as metadata.

It is because of the restriction of NFT work that the name is renamed to NFT work must be "archived data certificate", which is the scanning of work metadata members, data from previous documents, checklists and other information. Noted.

Looking at this, many holders will have doubts about the NFT work in their hands, and they cannot use a "certificate" with many of the fairly standard IP addresses provided by the NFT work they have, regardless of the amount they use. with sweet words.

Of course, there is real interest in the market for NFT projects that include member expertise as well as business applications, like the "Early Ape Yacht Club" project (yes, Curry will do that for around $180,000) . avatar), the NFT Host may enjoy the use, reproduction, presentation and creation of products based on the NFT content contained therein.

For a time, the street featured jackets, skateboards, shoes, and magazines with images of the Boring Ape Yacht Club, and even Universal Music Group created a virtual music gallery based on Boring Ape images. Yacht club.

Bored Ape Yacht Club

So how do NFT owners work properly?

The answer is simple and natural. These rights are obtained with the consent of the agent (such as the publisher of NFT's activities) and the agent. NFT work itself may be a digital form of rights and interests, but through special commitments, such as licensing members' professional knowledge in the field, trade in NFT work may affect certain policies and work interests. By themselves (e.g. trading members or using creative rights) they build relationships.

Therefore, the NFT staff conductor must decide what his rights actually are, and according to the NFT manufacturer must identify the rights he has actually granted him and identify them among the two main ones: the policy change for NFT works itself. and mutual consent, and other agreements regarding changes in the rights and interests of both parties.

1st dimension: change of policy and interest of the NFT to operate itself

First of all, it should be clarified that in the current environment, Chinese law has not yet made a final decision on the legality of NFT work and all investigations are decided according to current law.

Since NFT work is considered one of the "stock certifications", it is likely to be considered a type of virtual network device. The rules applicable to online virtual goods are set out in article 127 of the Civil Code.

"If the law has rules for the protection of data and virtual networks, these rules must be followed."

Shanghai First Intermediate People's Court (2020) Hu 01 Min Zhong No. In Unjust Enrichment Case 12524, the court said:

The USDT tether (tether) is a data-based virtual device that can be specially designed, managed and used by regulators, can be exchanged and has the characteristics of property.

USDT's exposure to the order is actually a Homogeneous Token (FT), but since both NFT and FT are tokens designed based on blockchain technology, NFT functions as "network tokens". in current law. . So, at the initial stage, having NFT artwork can be considered as a virtual asset of the network.

(2020) Hu 01 Min Zhong n° 12524 Civil judgment (excerpt)

Of course, there is currently no law affecting Article 127 of the Civil Law regarding online virtual goods, and compared to existing virtual devices, blockchain-based NFT functions have multiple new functions, such as a fiduciary self-assessment. , and the exchanges are clear, so the members are unique, accessible, managed, and easy to use, so they should be protected with assets.

Second: exchange of other agreements — in accordance with the law and the interests

Besides the marketing and replacement of NFT Works based on "online virtual assets", NFT Works advertisers can join other activities related to the rights and interests of the "online virtual assets" industry through engagement and planning .

By following the "Girl Ape Yacht Club" example above, users can find the details and status of the NFT project on the official website. Here is an interesting excerpt:

for commercial use. As long as you continue to abide by this Agreement, Yuga Labs LLC grants you an unlimited worldwide license to use, publish and display the Art for the purpose of producing products from the diagrams ("Business"). Examples of commercial uses include: Using artwork to create and sell commercial products (such as t-shirts) that print copies of artwork.

The commercial license in this section is that if the holder (release) of the NFT operates the "Red Girl Yacht Club" is authorized to use it, the term of the license is prohibited, and the capital of the license is used in the world whole. Owners of NFT employees may create job positions in accordance with their competent authority. This is the basis of the rules for various products released with the project's IP model after the project was popular. In this sense, Curry is not “buying an avatar for $180,000,” but spending $180,000 to get a high-class IP address with unlimited international heritage.

In terms of other related rights and interests, national platforms are also conservative due to respect for the rules.

For example, for the H platform, it is specified in the platform's "Service Agreement".

You understand and agree that all intellectual property rights in the Digital Collection belong to the publisher or other copyright holder. The above rights are not exchanged or shared by purchasing the digital collection….

Platform B's rules in the User Agreement are broad.

For Digital Products purchased on this Platform pursuant to this Agreement, Licensee hereby excludes, excludes, is not sublicensable, personal, non-commercial use on the valid time of right. License to Use and Display Digital Products.

......

The above license is only valid for as long as you have the digital script. If you cancel your account or discard purchased digital devices for any reason, the above license will expire without notice.

During the process of reviewing the current legal framework, it was found that the content and status of some platforms are unclear as to the rights and interests of other NFT (digital writing texts) projects, leaving much room to translation. For example, many platforms confuse NFT works, works and copyrights of works, which greatly increases the instability of the rights of owners of NFT works (digital collections). In addition, it turns out that the platform and the artist agree not to include the license and change the operating rules of the contract, but the platform users' consent gives users the right to apply certain legal procedures of work. In these cases, the owner may think that what he bought may be part of the rules of the work, but in fact the artist does not have the rights of the platform, or this may cause a conflict.

PS

The development of blockchain technology has brought old experiences and inaccuracies to people, and in the future will become the technological basis of digital identification tools, which will enable the recognition and development of the "metaverse". Epic descriptions can be way too far, take this sentence as an example when reading this text as a reader, when this is done a copy of the WORD text is placed in the blockchain archive platform and connected at the time of confidence. The stamps were wrapped and fixed in a chain, which proved to some extent that they had completed the paperwork at one time and obtained similar rights.

The whole repair process is very smooth and takes less than 10 seconds.

The new development is a clear view with the naked eye, but with the development of NFT platforms, instead of using other platforms' user agreements, how to identify the company's results words , how to create a consistent business model and ensure you avoid legal action. . How to adapt to the hype and how to avoid distractions are all things that need to be explained and considered.