A cross-party committee in the United Kingdom is urging the government to collaborate with non-fungible token (NFT) marketplaces to tackle copyright infringement issues and institute a code of ethics for the protection of creators. This initiative was disclosed in a report published on Wednesday.
Copyright infringement arises when NFTs are generated from original works without the consent of their creators and owners. The UK and the United States have witnessed numerous legal disputes related to this issue.
Dame Caroline Dinenage MP, who chairs the Culture, Media, and Sport Committee, expressed concern about artists facing the risk of having their hard-earned creations used and promoted without permission. She also highlighted the additional peril posed by fraudulent and misleading advertisements for investors involved in what is inherently a risky enterprise.
The committee initiated an investigation into NFTs back in November.
Additionally, the report raises concerns about certain UK football clubs issuing tokens that offer members various benefits such as voting rights on club matters, merchandise, and unique experiences.
The committee is apprehensive about the potential consequences of fan tokens as a form of fan engagement, considering their price volatility and reservations within fan communities.
Moreover, the committee pointed out that football fans speculating on sports-related crypto assets could harm both fans financially and tarnish the reputation of football clubs.
Dame Caroline Dinenage stressed that clubs are endorsing volatile crypto asset schemes to extract additional funds from loyal supporters, often making promises of privileges and benefits that go unfulfilled.
The committee also called on NFT promoters to shoulder the responsibility of protecting consumers.