A court in the eastern Chinese city of Hangzhou prosecuted NFTCN parent company BigVers for allowing a user to release an NFT based on stolen artwork.
The Chinese digital art trading platform was accused and found guilty that its team failed to verify that the user who released the NFT was the rightful owner of the artwork.
The lawsuit against BigVerse was filed by the Shenzhen-based company Qice. The plaintiff claimed that the user on the NFTCN trading platform posted a non-interchangeable token depicting a cartoon tiger being vaccinated, which was created by artist Ma Qianli. The post said the cartoon was sold by an anonymous user for $137.
To make amends, BigVerse was ordered to pay Qice a $611 fine and stop the distribution of the NFT by sending it to a cryptocurrency wallet without a private key.
It is also recommended that the marketplace create a copyright verification mechanism to verify artwork uploaded by users to the NFT platform.
So far, the national government has not banned NFTs, but it has ruled out private speculation with them. It is no coincidence that technology giants such as Alibaba, Tencent and JD have created their own platforms where users can buy NFTs. However, they are not allowed to trade or resell their tokens.
Earlier, China’s state-backed blockchain infrastructure Blockchain Services Network (BSN) also announced plans to issue NFTs. In an effort to speed up the process, BSN teamed up with Neo to create the Jiuquan network.