Key ideas:

• Tencent is going further in the Metaverse with new patent applications for virtual concerts.
• In 2020, Tencent bought a stake in US virtual concert platform Wave in a bid to dominate the virtual concert scene.
• China’s regulatory review could leave China’s music industry in the wake of metaverse-friendly nations.

Over the past few months, the Chinese government and the People’s Bank of China (PBoC) have criticized NFTs and the metaverse. The shift in focus follows last summer’s ban on Bitcoin (BTC) mining.

A marked increase in NFT activity and interest in the Metaverse has forced Chinese conglomerates to act despite government and PBoC condemnation.

This week, Chinese tech giant Tencent reportedly filed a patent for virtual concerts. Virtual concerts patent application follows China’s first virtual concert on 31^st December. Tencent held the “TMELAND” concert in the Metaverse to ring in the New Year. 1.1 million fans saw the New Year’s concert.

Ring in 2022 in #TMELANDChina’s first virtual #Music Festival. groove on music #NYE from your couch while you #avatar meet world famous DJs and artists with other partygoers. Dive via #QQMusic, #We sing and other Tencent Music apps. happy #NYE2022 pic.twitter.com/hLrqvjX1Yn

— Tencent 腾讯 (@TencentGlobal) December 31, 2021

Huge success, Tencent continues to ignore warnings from the Chinese government and the PBoC. Seeking to diversify outside of China, Tencent Music acquired a stake in Wave in late 2020. Wave is a Los Angeles-based virtual concert platform.

Past waves include Justin Bieber, Pentakill, Dillon Francis, The Weeknd and John Legend.

Patent applications arrive despite government warnings

Trademark and patent applications related to NFT and Metaverse continued to increase in China. The surge comes despite an increase in illicit activity and government warnings. In December, we reported that the PBoC cracked down on NFTs and the Metaverse using AML tools. The PBoC’s AML Unit views virtual assets as a conduit for illegal activity facilitated by the isolated nature of NFTs and metaverse-based items.

Just over 100 companies had registered trademarks related to the metaverse before a surge in late 2021. More than 1,300 Chinese companies reportedly filed trademark applications by the end of December. Other major Chinese companies filing trademarks include Huawei Technologies, NetEase and Hisense.

Since December, businesses have not let up. As of mid-February, 16,000 apps linked to the brand metaverse were awaiting approval in China. That figure was up from just under 9,000 in mid-December.

Whether the Chinese regulator approves the 16,000 remains to be seen. With fierce competition, however, China could fall behind if companies like Tencent are given a cold shoulder at home.