Property-Rights Confirmation for Emerging Virtual Property: Dilemmas and Solutions

Abstract

With the development of artificial intelligence, blockchain, and metaverse technologies, the forms of virtual property have shifted from traditional types such as game items and social accounts to novel virtual property like non-fungible tokens (NFTs), metaverse land, digital artworks, and algorithmically generated content. Although Article 127 of the Civil Code calls for protection of virtual property, it does not clarify the legal character or ownership of such property. Legal protection for virtual property currently faces core dilemmas including ambiguous rights-holders, difficulty in identifying the objects of rights, and the absence of a registration and public-notice system. This paper argues that novel virtual property should be recognized as a form of “special property right.” Drawing on foreign experience and adopting a phased approach to legislation, China should construct a three-dimensional protection framework centered on registration and public notice. Such measures would enrich property-rights theory, safeguard user interests, and promote the healthy development of the digital economy.