License characters to a third party to create an NFT to be sold in exchange for royalty payments. NFTs are being used by innovative brands in China to boost their brand value and engagement with consumers. Our client wanted to license its characters to a third party to create an NFT to be sold in exchange for royalty payments. They approached us to draft the NFT Cooperation Agreement and understand how to mitigate the new regulatory and IP risks created by this new digital asset. From a regulatory perspective, we advised on the contractual arrangements to receive royalties and to…