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A court in the Chinese city of Hangzhou has ruled unprecedentedly for an NFT market for allowing users to create NFT from a stolen work.
The court's ruling comes after Shenzhen-based Qice filed a lawsuit against NFTCN's parent company BigVerse.
The lawsuit is against a user on the NFTCN who stole copyrighted work by Ma Qianli, a Chinese artist with expertise in painting and printing paintings. The user allegedly stole a cartoon by Ma.
Based on the evidence gathered, the court found the NFTCN guilty of failing to check for forgery or theft of intellectual property before allowing users to create NFT. As a result, the NFTCN was convicted of facilitating a violation of the author's "right to disseminate works through information networks."
work The stolen work is an animated tiger that is being vaccinated. The piece was sold for 900 yuan (about $137) to an anonymous user on the NFTCN. However, BigVerse was ordered to pay a 4,000 yuan (about $611) fine to Qice in addition to stopping the NFT circulation of the work.
China has yet to issue a ban on the NFT although it does not support cryptocurrencies. However, three Chinese authorities issued a joint warning about the "potential risks" of investing in NFT.
These three agencies – the China Bankers Association, the China Internet Finance Association and the China Securities Association – have launched initiatives to encourage improvements in the NFT-focused cryptocurrency and blockchain sectors. At the same time, they also "resolutely refrain from the trend of financialization and securitization of NFT" to minimize the risks surrounding illegal activities.
The government has also warned citizens against using Bitcoin (BTC) and other cryptocurrencies such as Ether (ETH) or Tether (USDT) to trade NFT.
