The National Copyright Administration and four other government departments launched Sword network 2022 to solve copyright issues of NFTs in China.
NFTs have become a hot sensation since 2021 in the global cryptocurrency market, and it has fixed its dominance with emerging creators across the world. NFTs are booming in China as minting, mining, and trading cryptocurrencies are banned in the country. To prioritize the NFT market in China, the government is taking a cautious approach to preventing the unauthorized use of NFTs. Today, the National Copyright Administration launched the Sword Network 2022 campaign to stop unauthorized and copyrighted use of others’ NFTs.
An Innovative Campaign To Protect NFTs In China
As digital assets are banned in China, digital collectibles (NFT) continue to heat up in the country. The Chinese government has now considered NFTs by implementing copyright and piracy regulations. The National Copyright Administration, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office together took a step by launching the “Sword Network 2022” campaign to prevent online piracy and infringement of digital collectibles in China. It is the 18th consecutive campaign taken by China to solve copyright issues in the country.
Since 2005, the unauthorized use of online videos, music, literature, news, and live broadcasting has touched its peak. To solve this problem, the Chinese government has taken this step to control its usage. The infringement policy has been affirmed by rights owners globally.
China’s campaign will lead NFTs to follow a different business model from overseas markets, including copyright protection or ‘digital property right certification,’ which will eventually help avoid scams and fraud using fake artwork. Sword network will strengthen the copyright supervision of the booming NFT market in the country. The policy cracked down on NFT digital collections and “script killing,” which are unauthorizedly used by scammers using other people’s art, music, games, animation, film, and television. Fraudsters sell stolen artwork of a creator and list them as an NFT on a marketplace, sell pirated scripts through the Internet, and develop script images without the authorization of the copyright owner.
According to AntChain’s sales and global NFT growth rates, China’s NFT market is predicted to grow at a rate of 150% and touch 29.52 billion yuan (US$4.64 billion) by 2026. This is a reflection of the potential of the country’s creators as well as the potential of the NFT market. Sword network 2022 was a step that China desperately needed to take in order to develop the NFT market and boost the enthusiasm that creators have for their work. Previously, China had many problems with copyright violations in the NFT industry. For example, a company based in Shenzhen called Qice brought a lawsuit against a company based in Hangzhou called BigVerse for allegedly stealing the NFT work of Ma Qianli and illegally listing it on NFTCN.
As the Chinese government is currently in the process of regulating the sector, it is anticipated that those involved in the creation and trading of NFTs will now eliminate the frauds and thefts that typically occur with NFTs.