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China Court’s Ruling On NFTs and Copyrights

China, which has had an up-and-down relationship with the U.S. entertainment industry, became the latest country to offer a key regulatory framework in its first-ever case dealing with NFTs and the copyright violations they are sometimes saddled with.

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The last few years have been quite a journey for nonfungible tokens (NFTs), going from niche art collectibles to global marketing tools. China, which has had an up-and-down relationship with the U.S. entertainment industry, became the latest country to offer a key regulatory framework in its first-ever case dealing with NFTs and the copyright violations they are sometimes saddled with. In its decision, the Hangzhou Internet Court in China held NFT marketplaces liable for poor vetting of copyright violations, imposing stricter burdens on the marketplaces than on e-commerce platforms that enjoy the protection of a “safe harbor rule.” Shenzhen Qicedie Cultural Creativity Co. Ltd. v. Hangzhou Yuanyuzhou Technology Co. Ltd., (2022) Zhe 0192 Minchu No. 100.

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