Copyright infringement and regulation of NFT digital artworks
Non-fungible token digital artworks have become highly popular in transactions,yet they pose varying levels of infringement risks for creators,buyers,and NFT trading platforms.The circulation of NFTs relies on the integration of blockchain and smart contracts.The legal nature of NFT digital artworks is debated,with theories such as"property rights theory","credit rights theory",and"encrypted digital certificate theory"each presenting limitations.The"prop-erty rights theory"fails to align with the principle of statutory property rights,while the"credit rights theory"overly em-phasizes the contractual nature of smart contracts,overlooking the property rights aspect.The"encrypted digital certificate theory"does not fully capture the value and tradability attributes of NFTs.NFT digital artworks do not meet the originality requirement under copyright law and thus are not considered works in this context.Instead,they should be rec-ognized as virtual property online.The ease of creating and trading NFTs,combined with low infringement costs and the inadequacies of the"safe harbor"rule,means that creators can infringe on reproduction and information network dissem-ination rights without proper authorization.Purchasers may also infringe by displaying NFTs on platforms,while trading platforms might be liable for assisting infringement if they fail to exercise due diligence.To address copyright infringement in NFT trading,it is essential to develop monitoring and reporting systems,enforce content supervision,limit the misuse of the"safe harbor"rule through due diligence,promote compliance with trading regulations,and enhance remedies for copyright infringements to prevent further losses.