Translator：Jiang Wenyu

On April 13, 2022, Shanghai Chơi Xì dácheld the "Metaverse Entry Conference", announcing its official entry into the Metaverse. From April 14th to April 18th, Landing Law Offices, in cooperation with Sina's VR platform, organized a five-day online lecture series on the law of the Metaverse, explaining the legal issues that may be involved in the world of the Metaverse.

What exactly is a metaverse? What can the metaverse do? Let's follow the perspective of Landing lawyers and explore the answers about metaverse together.

01

The World of Metaverse from the Perspective of Criminal Law

In the first lesson of Metaverse lecture series Chơi Xì dáchuot; Exploring the Metaverse from the Perspective of Criminal LawChơi Xì dáchuot;, Mr. Zhou Wenjia, deputy director of criminal department and senior partner of Shanghai Landing Law Offices, made the following explanation, Chơi Xì dáchuot;Metaverse is still a virtual world, which is still under the category of Internet. At present, it is still more of a financial and Internet concept because the supporting technology is still relatively immature.Chơi Xì dáchuot;

What are the behaviors that involve the risk of criminal offenses Chơi Xì dáchhe virtual space that is the Metaverse?

Mr. Zhou suggested that when exploring the Metaverse, it was important to pay attention to the differences and connections between the Metaverse and virtual currencies. It was crucial to consider whether Chơi Xì dáchuot;cross-borderChơi Xì dáchuot; activities in the Metaverse carried criminal liability. He believed that the virtual world had its own uniqueness, ranging from the protection of personal and property rights, data confidentiality, to sales processes. For example, in the application of blockchain evidence technology in the sale of NFT blind boxes, we should all take criminal law as the basis and not cross the line.

“In addition, most people nowadays lack a deep understanding of the concept of Metaverse, which allowed many criminals to exploit the concept of the Metaverse to engage in fraudulent and other illegal activities. We should remain vigilant regarding this matter.”

During the livestream, Mr. Zhou expressed his concern about possible criminal offenses in the future Metaverse. He analyzed six possible types of crimes and provided preventive suggestions. At the end of the livestream, he expressed his expectation for the Metaverse with one sentence: Chơi Xì dáchuot;The direction and trend of human development will continue to generate emerging things. We need to explore boldly, verify carefully, and have true freedom in both reality and the virtual world.Chơi Xì dáchuot;

02

An Exploration of the NFT Compliance Model

In the second lesson of the Metaverse Lecture Series, Chơi Xì dáchuot;Discussion on NFT Compliance ModelsChơi Xì dáchuot;, Wang Ren, a senior lawyer from Shanghai Landing Law Offices, gave a presentation on Chơi Xì dáchuot;What is NFTChơi Xì dáchuot;, Chơi Xì dáchuot;What are the application models of NFTChơi Xì dáchuot; and Chơi Xì dáchuot;Compliance issues of NFT under Chinese lawChơi Xì dáchuot; and other issues were explained in detail.

NFT is called Non-Fungible Token (NFT), which is usually developed by developers on the Ethereum platform in accordance with specific smart contract standards (currently the common standards are ERC721 and ERC1155, and ERC998 is also gradually being promoted). The term Chơi Xì dáchuot;non-fungibleChơi Xì dáchuot; refers to the indivisibility of each NFT, meaning that each NFT cannot be divided and represents the entirety of its underlying asset. This is in direct contrast to fungible tokens (FT).

Subsequently, Mr. Wang Ren introduced the compliance risks of NFT trading in China, which are mainly centered on three aspects: administrative liability, civil liability and criminal liability. Among them, administrative liability is mainly related to relevant licenses and filings; civil liability is mainly related to copyright infringement; criminal liability is mainly related to illegal fund-raising, money laundering, illegal business operation and intellectual property rights crimes, and put forward the corresponding compliance suggestions.

Finally, Mr. Wang Ren interpreted the Chơi Xì dáchuot;Initiative on Preventing NFT-related Financial RisksChơi Xì dáchuot; jointly issued by China Internet Finance Association, China Banking Association and China Securities Association on April 13, 2022.

The initiative clearly states that NFTs are an innovative application of blockchaChơi Xì dáchechnology and should be recognized as a technology. It emphasizes that NFTs are distinct from virtual currencies, which are strictly regulated by the government. The initiative acknowledges the potential value of NFTs in enriching the digital economy and promoting the development of cultural and creative industries. However, it also highlights the risks and concerns associated with speculation, money laundering, and illegal financial activities Chơi Xì dáchhe application of NFT technology. Vigilance should be exercised Chơi Xì dáchhese areas.

03

Metaverse, is intellectual property ready?

In the third lesson of the Metaverse Lecture Series, Chơi Xì dáchuot;Metaverse, Is Intellectual Property Ready? in which Ms. Zhang Li, Partner of Intellectual Property Department of Shanghai Landing Law Offices, sorted out the copyright characteristics and value of NFT digital artworks. She proposed that Chơi Xì dáchuot;NFT solves the problem of copyright traceability of digital artworks rather than the copyright of digital artworksChơi Xì dáchuot;, and introduced the types of patent layout and the layout of existing Metaverse technology.

Zhang Li pointed out that enterprises can take their own advantageous core technology, or competitors' technology improvement direction, main application expansion field and key supporting technology as the starting point to establish patent barriers in advance.

During the livestream, Zhang Li also shared her views on the relationship between the future Metaverse and the existing intellectual property rights, and analyzed the cases that have been or may be generated Chơi Xì dáchhe future. She pointed out that although the law may lag behind technological advancements, it does not hinder its practical application. We have legal rules and principles that can be applied to relevant events. However, for the emerging online world, there is an expectation for more concrete legal regulations to provide clarity.

04

Data Compliance Chơi Xì dáchhe Metaverse

On April 17, Mr. Ding Xueming, Senior Partner and Head of Data Compliance Team of Landing Law Offices, shared his views on the topic of Chơi Xì dáchuot;Data Compliance in the MetaverseChơi Xì dáchuot;. Mr. Ding discussed the uniqueness of data compliance in the context of the metaverse, the operators of metaverse platforms such as DAOs and foundations, new challenges in data processing with the emergence of new smart terminals, and the potential privacy rule changes that may arise from platform autonomy. Drawing from his practical experience, Mr. Ding provided a comprehensive analysis of how to achieve data compliance in the metaverse, both in theory and in practice.

Chơi Xì dáchhis sharing, Mr. Ding especially introduced the new changes of data compliance under the new intelligent terminals (e.g., VR, AR, MR, XR), including the variety of data types, the changing scenarios of authorization and consent, as well as the complexity of data processing relationships. In addition, Mr. Ding focused on the changes in privacy rules triggered by platform autonomy and provided targeted advice on how to prove that user consent has been obtained under the blockchain feature. The participants Chơi Xì dáchhe lecture actively participated, and Mr. Ding answered.

The Metaverse has put forward new requirements for data compliance, and Data Compliance Team of Landing Law Offices will continue to study them with a view to keep communicating with colleagues from all walks of life and jointly explore new challenges of data compliance Chơi Xì dáchhe context of the Metaverse.

05

Legal Issues of Chơi Xì dáchuot;Virtual PersonChơi Xì dáchuot; in Metaverse

In the fifth lesson of Metaverse Lecture Series, Ms. Chen Mengyuan, a lawyer and patent attorney of Shanghai Landing Law Offices, shared the topic of Legal Issues of Chơi Xì dáchuot;Virtual PersonChơi Xì dáchuot; in MetaverseChơi Xì dáchuot; with the audience.

First of all, what is a “virtual person”? Chơi Xì dáchuot;Virtual peopleChơi Xì dáchuot; is a comprehensive product with multiple human characteristics realized by technical means. Chơi Xì dáchuot;Virtual peopleChơi Xì dáchuot; is not a recent concept, China's earliest virtual idol was born in 2001 in the all-digital movie short film Chơi Xì dáchuot;QingnaChơi Xì dáchuot;, Subsequently, characters like Hatsune Miku, Luo Tianyi gained global popularity. Virtual characters such as Chơi Xì dáchuot;Xiao Xiao SaChơi Xì dáchuot;, Chơi Xì dáchuot;Teresa TengChơi Xì dáchuot; have appeared on the Chinese New Year Gala, virtual content creators have become popular on platforms like Bilibili, and virtual streamers have gained popularity by streaming 24/7. Chơi Xì dáchuot;Virtual personsChơi Xì dáchuot; have completely entered the public's field of vision.

Then the “virtual person” will face what legal problems?

Firstly, does a virtual person have virtual personality rights? This question can be answered as follows: if the virtual person has a one-to-one correspondence with a human being Chơi Xì dáchhe real world, although the virtual person does not have independent personality rights, if their virtual personality is violated, it may cause harm to the real person's personality. Based on this, the virtual personality is protected by law. However, if the virtual personality cannot be directly linked to a real person, it may be difficult for the virtual personality to be independently protected by personality rights. In some cases, the corresponding rights may be protected through Article 11 of the Anti-Unfair Competition Law, which deals with commercial defamation.

Secondly, does the work created by the AI virtual person have copyright? Referring to the copyright dispute between Shenzhen Tencent Computer System Co., Ltd. and Shanghai Yingxun Technology Co., Ltd., the court recognized that the works created by the virtual AI have copyright and are considered legal person works.

Thirdly, what algorithm compliance obligations should be implemented by the AI virtual person. the operator of the AI virtual person should implement the compliance obligations involved Chơi Xì dáchhe recommendation algorithm and the depth synthesis algorithm.

Finally, Ms. Chen summarized seven compliance recommendations for reference by virtual human operators.

06

Web3.0's Change to Traditional Investment and Financing Methods

Web3.0 is a hot topic among investors nowadays, and enterprises involved in Web3.0 have been the focus of major venture capital organizations and technology enterprises. So as the next generation of the Internet, what is Web3.0 like? Is it evolution? Integration? Or is it a deeper level of governance?

Wang Ao from Shanghai Landing Law Offices (Shenzhen) explained the current hot topic of the Internet - Web3.0 - through the course Chơi Xì dáchuot;Web3.0's Transformation of traditional investment and financing methodsChơi Xì dáchuot;.

Lawyer Wang Ao in the live classroom with everyone around the Chơi Xì dáchuot;Web3.0 is really decentralizedChơi Xì dáchuot; this topic to start the discussion, at the same time, also shared with everyone enterprises and investors are incredibly concerned about the Chơi Xì dáchuot; Web3.0's Change to Traditional Investment and Financing Methods Chơi Xì dáchuot;.

Since 2019, Wang Ao has been helping corporate clients with the layout of web3, including the construction of overseas company structure, equity design, equity incentives, enterprise investment and financing, qualification license application, data compliance, etc., and providing support to corporate clients with various business ideas and business models.

Chơi Xì dáchhe past, the purpose of Internet projects is to obtain users and followers through rounds of financing and capital investment. However, what web3 brings is a brand-new investment and financing model, a brand-new market revolution, and web3 is redefining the trade principles Chơi Xì dáchhe digital era.

Wang Ao's lecture showed us a brand-new world. Users take ownership of their data, can control it autonomously, and can securely realize data interaction. With the emergence of co-construction community, enterprises have a new way of operation; the emergence of Dao organization can help enterprises to get 1 million users in 1 day; the emergence of NFT helps enterprises to make up for the management loopholes, protect the user's property rights, and then retaChơi Xì dáchhe users.

Web3.0 still has a vast space for development and exploration. The internet is a vast world with many things waiting for us to explore.

This series of legal lectures on Metaverse has come to a successful end, and we have prepared a replay of the lectures for everyone. Follow the Official accounts of Chơi Xì dáchuot;Landing LawyerChơi Xì dáchuot;, and reply Chơi Xì dáchuot;MetaverseChơi Xì dáchuot; in the backstage to obtain the replay link.

As Wang Ao mentioned, the Metaverse is a virtual space that is constantly evolving and improving with future technological advancements, and there are still countless unknown fields waiting for us to discover and explore, which is precisely an opportunity and attempt brought to lawyers.