The article examines the economic and legal nature of cryptocurrency as an object of civil rights. The article analyzes the current problems of the civil law mechanism for fulfilling obligations in the sphere of digital rights turnover. The system of characteristic features of the cryptocurrency is revealed. To clarify and integrate doctrinal, legislative and law enforcement approaches, the author proposes a definition of cryptocurrency based on its qualifying features. The author defines cryptocurrency as a transferable complex thing within a given specific digital system, which is characterized by both material signs of money, currency values and information, and legally significant qualities of the property, digital and intellectual rights, and intangible benefits (business reputation). Currently, it is necessary to sыolve the problem with the lack of theoretical, legislative, and law enforcement approach to the concept of cryptocurrency and the systematization of its qualifying features. The legal definition of cryptocurrency will serve as a methodological basis for the effective legal regulation of relations both in the specialized market of digital financial instruments and relations in the rapidly developing sphere of digital rights, which is necessary for economic growth and serves as an institutional basis for the digital economy and the state.
<h5 class=annotation lang-ru sigil_not_in_toc>В статье обсуждается решение высшего суда Сингапура, рассмотревшего вопрос о том, может ли сделка, совершенная между собой двумя компьютерными алгоритмами (условно говоря, роботами), быть признана недействительной ввиду существенного заблуждения одной из сторон.<br /> Ключевая проблема — как определять ментальное состояние сторон такой сделки на момент ее совершения, если владельцы роботов лично в сделке не участвовали? Большинство судей считает, что стороне-ответчику вменяется ментальное состояние программиста, который программировал ее робота. Судья из Англии, выступивший с особым мнением, полагает, что стороне вменяется ментальное состояние «разумного трейдера», если бы он принимал участие в этой сделке вместо ее робота.<br /> Термин «смарт-контракт» в деле не фигурирует. Однако многие сформулированные в нем тезисы относятся в том числе и к смарт-контрактам, понимаемым как компьютерные алгоритмы, существующие и исполняемые в блокчейнах.</h5>
The conclusion of smart contracts is placed on the blockchain platform due to the special features of this platform, including the two features of transparency and decriminalization. After being completed on the blockchain network, these contracts' transparency feature enables the public to observe and offer them. In this case, all the people who have access to this platform have the possibility of knowing what was transferred by whom to whom, and this not only prevents the occurrence of many related lawsuits but also many crimes related to property.
Non-Fungible Tokens, or NFTs, are digital assets based on blockchain technology and are steadily growing in popularity in the art market. The technology has created a novel way of establishing ownership through tamper-resistant cryptographic records. A majority of NFTs are created via the Ethereum protocol and are most notably associated with other assets, such as digital art. Even prominent auction houses, like Christie’s, have joined the action. NFTs offer a whole host of new and interesting legal concerns, including questions surrounding smart contracts. The concerns surrounding traditional art, however, are long-standing and include (but are not limited to) provenance, authenticity, title, copyright infringement, and various art crimes established by statute. The combination of existing law and new technology creates uncertainty and requires exploration. This note explores how NFTs may influence a few of the long-standing issues in art law, specifically if an NFT were to be associated with tangible artwork. Further, this note argues that NFTs show promise at resolving some of the issues surrounding provenance, title, and authenticity if the artwork is created with an NFT in mind; however, the technology can also complicate these same issues—most notably copyright issues—especially with existing artworks not created with NFTs in mind. The legal concerns surrounding NFTs are uncertain and only just emerging, and as is the case with most nascent technology, regulation lags. Yet, the potential benefits to artists are encouraging and ever evolving.
Non-Fungible Tokens (NFTs) built in the blockchain are quietly revolutionizing ideas around digital assets despite their questionable status under current law. Furthermore, the smart contracts that control many NFTs are disrupting the way deals are done. At the same time, disputes regarding NFTs and smart contracts are inevitable, and parties will need means for dealing with these highly technical issues. This chapter tackles this challenge and proposes that parties turn to online dispute resolution (“ODR”) to efficiently and fairly resolve NFT and smart contract disputes. Furthermore, the chapter acknowledges the benefits and challenges of current means for addressing blockchain issues and proposes ideas for how designers could address those challenges and incorporate ODR to provide efficient and fair resolutions.
The post-COVID-19 era is an age of disruption, which presents significant social, cultural and technological challenges and opportunities for society at large. There has been substantial wealth generation fuelled from digital currencies, which has led to interest and sales of Non-Fungible Tokens ('NFTs') and their associated assets. This article will examine the growth and hype about artistic NFTs in the context of recent years. It will then examine the application of current Australian copyright laws to such NFTs and their assets to determine subsistence and infringement of these works. The notion of what it means to 'own' an NFT will be examined. When applying traditional proprietary notions of ownership to NFTs, it will be seen that they have the capacity to challenge established norms which have evolved in a material, pre-technological world. Finally, this article will ponder the question as to whether a new type of virtual ownership right is emerging for NFTs and their associated assets.
The software industry's history is also its future. Its history has been defined by both abundance and scarcity, and its future will be, too. In the 1970s and 80s, perceived software scarcity led U.S. legislators to formally grant intellectual property protections to software creators. Later, a different kind of scarcity-a lack of access to source code-led the founders of the free and open source software movement to flip intellectual property protections on their head in an effort to better promote abundance. That movement proved wildly successful, with today's software industry based on vast amounts of freely available open source software resources that both organizations and individuals collaboratively build. Abundance and scarcity will also define software's future, but in different ways. The abundance that the open source software movement spawned is in the midst of a significant commercial phase. That sometimes means that commercial competitors bring to the table a scarcity mindset that conflicts with the norms that made that movement so successful. Intellectual property concerns at times derail what may otherwise be even greater software abundance. And because so much software is moving into the Cloud, trade secrecy may become the software industry's most important form of intellectual property to the extent the industry abandons open models of innovation. The software industry's growing dependence on artificial intelligence (AI) is likely to contribute to these trends. The software industry is increasingly becoming synonymous with the AI industry, as more and more software companies either rely on AI in running their services or provide AI products to the public. As with all software, these AI technologies are increasingly provided from the Cloud, where trade secrecy is not only possible, but often preferable. But trade secrecy may be even more likely in the AI context because much of the magic in implementing AI systems lies in the know-how to piece them together from available open source software resources, decades-old AI techniques, and data. Hence, to the extent that software and AI technologists spurn open innovation in favor of a scarcity mindset, trade secrecy is likely to become its dominant form of legal protection. The advent of web3 technologies may eventually change some of these trends. But for now, increasing secrecy seems the most likely outcome. I conclude by arguing that this shift to secrecy is likely preferable to other forms of intellectual property.
The paper aims at determining the utility of NFTs within the current EU framework of copyright, specifically from the authors' perspective. The issues of technical feasibility and scale of adoption remain beyond the scope of the paper; the focus lies rather on the legal aspects, particularly the case law of the CJEU. For authors, the NFT landscape is currently filled with potential economic benefits, as well as perils. With this in mind, the paper anticipates future legislative and judicial interventions in the new area. The paper's answer to whether NFTs could be relevant for copyright law is a resounding "yes", potentially allowing the effortless dissemination of content to finally work in the authors' favor, instead of incurring enforcement costs. Interestingly enough, the answer is justified with the example of tokenized internet memes.
Abstract The viability of exponentially growing non-fungible token (NFT) market is evaluated by identifying potential value-generating mechanisms that can be rationalized. After identifying the value-generating mechanisms underlying the positive values of NFTs, this study establishes a pricing model for NFTs that follows a continuous-time financial framework. As NFTs are claimed to securitize “ownership rights short of use”, and as such they may potentially serve as a substitute for the need to rely replace the reliance on the legal protection provided by intellectual property rights (IPRs). Considering this issue, this study evaluates the likelihood that NFTs will replace existing mechanisms that protect producers’ rightful claim to use their assets or the need to apply the legal code that governs IPRs. The financial condition for this potential shift is derived for a category of assets whose use or consumption does not reduce supply as the notion of scarcity does not apply.
Purpose-The smart contract and blockchain concepts are being discussed in various disciplines as well as law with a rapid increase. However, in legal sense, the application of such concepts are far more advanced than the legal regulations on those topics not to mention the academic studies. Although there are a few distinguished monographies and a number of papers focusing the legal aspect, the applicability especially in certain circumstance -in which contractual law studies or defines as fundamental elements -are still vague. Therefore, this paper distinguishes itself by focusing on the purpose of studying some of the possible legal effects and results of smart contracts in commercial life as well as in finance.
With the rise of living standards, more and more people pay attention to the grade of ceramic products. The beautiful appearance of two different ceramic products of the same type can bring a price difference of more than 1,000 times. Because the structure of ceramic products is simple, easy to imitate, and difficult to identify, many imitation products have infringed on the rights of customers and original product enterprises. Therefore, copyright protection becomes particularly important. However, traditional methods of copyright registration fail to satisfy the requirements due to their long cycle, non-transferable, and cumbersome in rights confirmation, etc. In this paper, we combine the appearance and structural features of ceramic products, investigate an approach for rights confirmation and infringement tracking with the digital features of ceramic products. As another contribution, we propose to establish a copyright transaction model based on smart contracts. To identify the infringement acts, we invoke smart contracts to extract the rights. Through the computer vision algorithms to compare the similarity between physical products and digital resources. Combined with this research, the registration, confirmation, traceability, and transaction of ceramic product copyright can be well realized.
Abstract The invention of disruptive technologies broadens the horizon of opportunities for intellectual property owners. The very idea of selling copyright works in a digital space and using the same to form a digital currency is disruptive. This is one opportunity Non-Fungible Token (NFT) offers. But that disruptiveness raises certain questions and provoke the consciousness to wonder if NFTs are a form of intellectual property, or whether NFT would shift the paradigm of copyright law as we know it. Governments through her agencies are also caught in the unrestlessness of deciphering what NFT means and whether it holds any value for intellectual property. This article will address the relationship between NFT and copyright, the forseeable problems and solutions, and how NFTs are channels for intellectual property commercialisation.
The research is carried out on some legal issues of smart contracts and their place in Russian and other countries’ contract law. By means of contract law such issues are analysed: 1) conclusion and performance of smart contracts’ obligations; 2) practical issues arising due to smart contracts’ use; 3) contract law provisions that might be applied to smart contracts; 4) issues that are not covered by the legislation but need to be addressed. A smart contract is considered to be a contract with the specific type of performance of obligations (automated performance). Smart contract is a contract concluded with an exchange of data (type of a written form). Smart contracts are performed with the help of automated performance and previously expressed consent of parties. It is proved that smart contracts could be modified and terminated giving a mechanism for that as well as provides for measures of defence and responsibility that could be applied for obligations out of smart contracts. As the result, provisions of smart contracts that reflect smart contracts’ place and peculiarities in contract law are formulated
The deployment of smart contracts within the European zone could fluidify economic transactions. It also risks fragmenting the Digital Single Market (“DSM”). This conundrum calls for a constructive response to preserve both the benefits brought by smart contracts and a strong DSM.
Against this background, this report adopts a “law + technology” approach. It suggests combining law and technology to develop solutions that encourage the evolution of smart contracts (rather than hindering it) in a direction that preserves and reinforces the DSM.
Abstract Blockchain dispute resolution has led the crypto economy to the surge of a new form of dispute resolution: blockchain arbitration. Resolving disputes on-chain is becoming necessary as national and international legal frameworks are not adapted to the characteristics of blockchain transactions. More importantly, the legality of smart contracts is highly debated under various national laws. This new sui generis form of arbitration should not be assimilated with traditional arbitration. Indeed, blockchain arbitration might not fit within the traditional international arbitration framework, and it does not have to. Because blockchain arbitration operates as an oracle, the decision from the jurors automatically triggers or modifies the smart contract. Through the blockchain technology, arbitration has reached the possibility to automatically enforce arbitral awards with no need to rely on state courts’ authority. Observing the legal theories of international arbitration, blockchain arbitration enshrines the representation of delocalized arbitration, but simultaneously leaves room for a new representation of arbitration: decentralized arbitration. In the next decades, we will see the surge of the blockchain arbitral order, an independent legal order anchored in the Lex Cryptographia. This essay advocates for the recognition of the blockchain arbitral legal order and tries to draw its contours.
This article has been prepared for the research purpose of identifying, disclosing, and justifying certain trends in the development of civil law and procedures in the context of the spread of smart contract practices and the expansion of their spheres of application. At the moment, there is no uniform approach to choosing an optimal form for the legal regulation of smart contracts within the system of contract law in modern legal systems or international law; meanwhile, globalization and the digitalization of the economy imply the growth of cross-border transactions. The emergence of smart contracts is due to the development of e-commerce, in which the parties’ interactions are carried out electronically instead of in physical exchanges or direct physical contact. Smart contracts gaining popularity in circulation are based on two interrelated elements: firstly, they eliminate a person’s direct participation in some or all cases of executing the agreement using an automated code designed for execution without reference to the intentions of the contracting parties after publication; secondly, they make use of decentralized blockchain technology, and also provide automatic code execution without any party’s potential intervention, so as to eliminate or reduce the self-control and third-party control of the commitment. This study examines the content, conclusion, validity, protection of rights and legitimate interests of the parties, interpretation, and legal nature of smart contracts. The research materials used foreign experience in resolving disputes from smart contracts on digital platforms (Kleros, JUR, Aragon Network Justice, OpenCourt, OpenBazaar), as well as domestic and foreign literature on smart contracts. This research has been prepared based on general (deduction, dialectical analysis, intersectoral relations of objects) and specialized (comparative-legal, economic-legal) methods of scientific experimentation. The authors conclude that there are no grounds for considering a smart contract as a new classification element of the system of contractual regulation (type or kind of contract). In addition, the analysis shows that the resolution of smart contract disputes through digital platforms remains radically uncertain, and currently is not creating obvious advantages in comparison with traditional judicial proceedings.
The present paper analyses the aspects of investigations of crime involving cryptocurrencies as a payment instrument. Ever since their emergence, cryptocurrencies have come to be actively used by criminals in all types of illegal activities, such as drug trafficking, money laundering, illegal arms trade, payments for criminal services and many other crimes. The paper aims to establish the methods of crime investigation to track data on cryptocurrency transactions and identify and show up the participants of illegal operations. The author shows that the development of computer and digital information technologies and the Internet has brought about the ever-increasing prevalence of cryptocurrencies in all social domains, including the shadow sector, i. e., the criminal world. Figures are provided illustrating the overall circulation of cryptocurrencies in the world and its illegal segment. Explaining the attractiveness of cryptocurrencies for criminal structures, the author points at its anonymity and inadequate regulation of various aspects in laws. An analysis is provided of the practice of countries where cryptocurrency circulation is not only permitted but regulated to a maximum possible extent. The impact of such regulation for the state of the shadow cryptocurrency market is shown. The research further concerns the potential for bringing international expertise to the Socialist Republic of Vietnam. Potential methods of crime investigation concerning shadow cryptocurrency transactions are outlined, helping to identify and show up the participants involved. Forecasts are provided as to the development of modern forensics and the emergence of new forensic methods helping to uncover cryptocurrency-related crime; proposals are drawn for amending criminal and criminal procedure laws to facilitate investigations in the new context.
Blockchain tehnologija u svijetu kriptovaluta donosi sustav decentraliziranog načina poslovanja. Bitcoin kao predstavnik u kriptovaluta donosi izvršavanje transakcija bez centralnog autoriteta. Takvo poslovanje postiže se određenim mehanizmima uz točno određena pravila i algoritme koji moraju zadovoljiti sve uvjete ispravnosti. Štoviše, velik broj ljudi mora provjeriti ispravnost transakcija kako bi bile valjane što donosi čvrstu i sigurnu provjeru i povezanost. Blockchain tehnologija i kriptovalute objašnjene su pomoću Bitcoina, izrađenog simulatora i Ethereuma. Dodatno je navedena primjena blockchain tehnologije u zdravstvenoj industriji i pri glasanju na izborima kao moguće rješenje za opisane probleme. Blockchain tehnologija ima priliku za napredak i razvoj primjenom umjetne inteligencije.
This chapter examines the relevance of artificial intelligence (AI) for construction disputes, focusing on LegalTec related to AI, machine learning, Distributed Ledger Technology (blockchain), Integrated Engineering or Construction ERP (Enterprise Resource Planning) systems and Building Information Modeling (BIM). Construction ERP and BIM use (virtual) central storage of all project data in databases that can be queried in real time and track all project related activities, which can also be more easily correlated by the operators. They create massive amounts of data in machine readable and standardized formats with potential for use in machine learning, AI and predictive technologies. If one considers the complexity, duration, the associated cost of most construction disputes and the often-voiced need in the construction industry for swifter resolution this kind of reduction of issues to be decided and the simplification concerning the establishment of facts seem to indicate that there should be a sufficiently great market for such functionalities that operate at the pre-legal dispute level.