First Mover Asia: NFTs Have a ‘Digital First Sale’ Problem

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First Mover Asia: NFTs Have a ‘Digital First Sale’ Problem
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Good morning Asia, here's what's making news today: 1. Copyright law related addressing digital-first sales has not caught up to blockchain. 2. Short interest rises on China tokens. TheSamReynolds reports

Like many things in crypto, the law hasn’t caught up to the speed at which the industry moves.Based on a current but outdated reading of the law, the entire secondary market for non-fungible tokens is illegal. And the original creators of the NFTs could – based on how the law is currently understood – invalidate the entire secondary market.

But should that copyrighted material exist in digital form, such as a movie in file format, a video game from the Xbox Live Store or a monkey jpeg, this is where things get complicated – and illegal. This is why digitally purchased movies and games come wrapped in Digital Rights Management software that controls how you can use the file.

This is something that’s only possible with blockchain, before we were just sending copies of the file which wouldn’t qualify for protection under the first sale doctrine.

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