Viewpoints... Calm analysis of "hot" digital collections-blockchain, digital collections and intellectual property legal analysis.

Published:

2022-07-17

The Status Quo and Reasons of the Hot Digital Collections in 1. Artist Beeple's NFT encrypted art work "Everydays:The First 5000 Days" looks like a two-dimensional code from a distance, but this is the witness of the author's 13-year oil painting career. All the digital pictures of oil paintings in his creative career are collected together to actually form a new work. This composite picture has unique value. The work was sold by the auction agency Christie's for $69.34 million. This is the world's first sky-high art to be auctioned in the form of NFT. Then celebrities from all walks of life into the bureau, the international market NFT hot. NFT, all known as Non-Fungible Token, refers to non-homogenized tokens, which are the only encrypted digital tokens used to represent digital assets. Non-homogenization is different from the well-known bitcoin. NFT is not a coin, but a unified marking standard for marking digital assets, which can be traded on a platform recognized by all parties. Because of its tradable financial-like function, NFT is restricted from trading in the country in order to prevent all kinds of risks and violations that may arise. Based on the compliance review, it is called "digital collection" in the domestic market ". In October 2021-all works on Ant and Tencent's NFT platform were renamed "Digital Collections", and the NFT statement will not be repeated in the industry. After the market burst into flames, speculators have added fuel to the flames. The hot digital collections have changed their identities and playing methods. The random flowers are becoming more and more attractive. As of June 2022, there are more than 500 domestic digital collection platforms. It is estimated that the market size of China's digital collections will exceed 50 billion RMB by 2023. For digital collections, it is necessary to conduct a calm analysis, so as not to stray into the depths of the flower. 2. Digital Collections and Digital Collections Platform (I) domestic and foreign digital collections are based on blockchain technology, there are obvious differences, which is also the source of risk for investing in digital collections. One of the main differences between domestic digital collections and foreign NFTs is that foreign NFTs are based on public chains, while domestic digital collections are mostly based on alliance chains, I .e. "partially decentralized" blockchains run by some TMT (which are technology, media and communications) companies. According to the degree of decentralization, the descending order is public chain-alliance chain-private chain. The alliance chain is between the public chain and the private chain, and only communicates with part of the characteristics of blockchain technology-partial decentralization. Take the digital collection platform as an example, the user is based on the account password login platform, personal account all assets rely on the platform, rather than independent existence. If the platform fails, given that the collection does not have a physical counterpart, its digital characteristics lead to the risk of the user's digital collection disappearing. (II) Digital Collections Platform Type Customary according to the size can be divided into three categories: The first category: Ant, Tencent, Baidu, Jingdong and other Internet companies launched platforms, such as whale exploration, magic core, most of them have also developed their own block chain. With the resources and technology endorsement of large factories, the head effect of this kind of App platform is obvious. Based on the different degrees of supervision, but there are slight differences among them, Tencent's "magic core" App, represented by Tencent, has not opened a secondary market at all, and the collection cannot be transferred. Ant's "Whale Exploration" App, as the representative, has not opened a secondary market, but has set up a "transfer" function. Users can "free transfer" the collection to others after 180 days of purchase (considering the actual situation, it should be after offline transaction is completed), stimulate private secondary market demand; The second category: platforms supported by state-owned capital and official media organizations, such as Xinhua News Agency's "Xinhua Digital Tibet" platform, and "Zebra China" controlled by Chengdu TV Station, which is currently the focus of attention 」. The third category: ordinary small platform, need to third-party technology companies to buy on-chain services. The platform's income mainly comes from the primary market income of the first digital collection, but if it cannot be traded in the secondary market, the digital collection can only become a "collection" without trading value, so some platforms bring their own secondary trading market or use "consignment" and "transfer" as trading intermediaries to promote the circulation of digital collections. Therefore, the acquisition and circulation of digital collections are completely dependent on the platform and cannot be freely traded, so investment needs to be treated calmly. Intellectual Property Nature of 3. Digital Collections For music, art, pictures, models, etc. can be digitized as "collections", or works that exist in the online world can be directly converted into digital collections. For digital collections, they can be divided into the following categories: first, the digitization of cultural works of art in the real world; The second is the direct creation of digital works in the online world; The third is the integration of real world and virtual world works. The fourth is to enable a piece of work at will but the platform gives it various VIP privileges, which are called "platform enabling" works. But no matter what form it is, it can never go beyond the intellectual property rights of its creators. The digital collection of Xu Beihong's paintings released by Tencent's "magic nuclear" has triggered a copyright dispute. This set of Xu Beihong's digital ink horse collection has a total of 8 items, all of which are selected from Xu Beihong's most famous running horse theme. Each item of the collection was sold out immediately after the magic core was released in limited quantities. Xu Beihong Art Museum issued a statement stating that some of the original works of the digital collection sold by certain digital platforms in the name of Mr. Xu Beihong are counterfeit works, some cannot provide complete traceability evidence, and some works have nothing to do with Mr. Xu Beihong. And made it clear that the Magic Nuclear did not authorize the distribution of the digital collection of Xu Beihong's paintings. Magic Nuclear stated that their authorization came from the owner of Xu Beihong's works-Beijing Imperial City Art Exchange Center. The Copyright Law stipulates that the right to exhibit works of art shall be enjoyed by the owner of the original, but the transfer of ownership of the original does not change the ownership of the copyright of the work. That is to say, the original holder of the magic nuclear does not enjoy any copyright rights other than the exhibition right, although the magic nuclear defense has passed the 50-year protection period. However, if the name of Xu Beihong is not part of Xu Beihong's work, or if the part of the painting is digitized, it will involve infringement of the right of authorship and the right to protect the integrity of the work (the right to protect indefinitely), and the digitization of infringing works cannot enjoy legal rights either. Therefore, digital collections must first solve the problem of intellectual property authorization. If the relevant intellectual property rights enter the public domain beyond the protection period, another problem is that they cannot obtain exclusive rights, that is, all platforms can issue digital collections with the same content, which will cause any platform to fail to realize its promised limited distribution, and the value will inevitably be greatly reduced. In this way, it is all the more necessary for digital collection buyers to polish their eyes. All kinds of problems that need to be treated calmly in the heat of 4. digital collection The (I) platform does not comply with its commitments, and there is a risk of devaluation in excess of the number. On July 13, 2022, digital collection players found that they had grabbed the "Good-looking City Carnival" issued by a certain digital collection platform, with a limited number of 500 copies marked. However, after communicating with each other, the buyers found that the quantity was very different. After checking that they actually distributed 825 collections on the same day, the platform apologized to the buyers and compensated or refunded them. Obviously, the value of digital collections lies in their limited and rare, but given the extremely low cost of digitization, the fulfillment of their limited commitments depends entirely on the platform's own control and credibility. The low threshold for the construction of (II) digital collection platforms has led to the proliferation of various platforms. 30000 yuan can build the digital collection platform of H5 web page in 3 days, and then connect to the alliance chain to provide the chain service to operate. So since the digital collection heat wave is bound to inspire all kinds of small and medium-sized platforms have been launched, but will eventually be a big wave of sand, digital collection platform is ultimately the credibility of the winner, but after all, squandering gradually attractive eyes, easy to produce all kinds of trading risks. Digital collections should look for platforms with good reputation to trade, and should not be swallowed by bait for immediate benefits. (III) digital collection dealers manipulate prices, collectors cut leeks Digital collection dealers often first attract users with low-priced collections, and then make high-priced transactions to attract users to buy at high prices and become caterers. When the user sells the collection, there is no one to take the dish, and the leeks are cut and locked up smoothly. For investors committed to digital collections can not be ignored, so such transaction regulators are not yet able to intervene, easy to be done into the set. If suspected of fraud and other economic crimes, should immediately report to deal with the loss. (IV) digital collections have intellectual property defects, resulting in no collection value The digital collection itself is plagiarized and belongs to infringing works, which can not be protected after digitization. Its value is equal to zero. Therefore, the purchase of digital collections should verify the legality and authenticity of copyright authorization, to avoid a basket of water. Since copyright has 17 rights, even if there is a real authorization, it is necessary to see whether there are necessary rights of reproduction, distribution and information network dissemination, or consult professional lawyers for review. (V) digital collections can only confirm the digital collection itself, but cannot confirm the identity of the owner, stolen difficult to recover Like Jay Chou's "boring ape" stolen incident is not a case. "Although the digital signature technology used in the blockchain ensures that the private key is difficult to break, hackers still have a way to obtain user information. Once it is acquired, the transaction defaults to the right to dispose of it. After the digital collection changes hands, it is impossible to judge the true identity of the holder, so the "boring ape" has been resold many times and cannot be recovered. The security of digital collections remains a problem, is not foolproof, is not traceable, and since the consideration paid by the trader can claim bona fide acquisition. 5. meta-universe is just a mapping of the real world, and more rules are needed to form a square circle. Some people are excited to see the arrival of the era of "meta-universe", but it is actually just a mapping of the real world, and it is also a process manipulated by people in the real world. Of course, it is inevitably related to the real world and cannot get rid of laws, regulations, and policies. Constraints. The digital collection industry is in the ascendant and is conducive to the dissemination of works and value realization, but the rules always lag behind reality, there is still no unified regulatory standards and regulations, the competent authorities have not defined, it is more difficult to form a collaborative regulatory force, resulting in frequent risks, which is also one of the reasons for this paper's cold thinking about the hot phenomenon. On April 26 this year, the China Internet Finance Association and other three departments jointly issued the "Initiative on Preventing Financial Risks Related to NFT", which clearly proposed to eliminate the financialization risks of NFT and reconfirmed the restriction of its financial functions. In April this year, the China Mobile Communications Federation Yuanuniverse Industry Committee issued the "self-discipline requirements on standardizing the healthy development of the digital collection industry", which raised the issue of competition order and market stability. On June 30, cultural central enterprises, IP institutions and nearly 30 Internet technology companies such as Ant, Tencent, Baidu and Jingdong jointly launched the "Digital Collection Industry Self-discipline Development Initiative" in Beijing to oppose secondary transactions and speculation and reach a consensus on promoting high-quality development of the industry. Public power organs, state-owned institutions, science and technology enterprises have realized the original growth of all kinds of chaos, some people in the risk of seeking money to wander the edge, some people get chestnuts in the fire, both lose, some people get stuck as they wish to cut leeks ...... It seems that in the complex interest disputes really need to think calmly.

Key words:

Analysis, Collection, Digital, Platform, Works, Transaction, nft, Xu Beihong, Unable, Digitization