(By Lv Xuanxuan)

I. Civil right protection

As stated above, digital derivatives are virtual property because of its form and value. In Section 5 Civil Rights of Chapter I General Provisions of Civil Code include general provisions about digital and internet based virtual property, stating that digital and internet based virtual property should be protected according to relevant legal provisions, if any. Pursuant to Articles 240 and 241 of Civil Code, real property or property owner is legally entitled to possess, use, receive profits from, assign or create a right to use or security interest in the property, but the person with a right to use or security interest in the property cannot exercise their rights by harming the property owner’s rights. In Article 323 of Civil Code which sets out five rights relating to use of property, the person with a right to use other person’s real property or property can legally possess, use or receive profits from the property. In addition, Civil Code also includes security, pledge, lien and occupation related rules. Because of the legality of rights in property, ownership and the right to assign internet based virtual property is based on creditor’s right to ask for payment of debts owed to them, not directly coming from the property related provisions of Civil Code.