A cross-party committee in the United Kingdom has called on the government to collaborate with non-fungible token (NFT) marketplaces to combat copyright infringement and establish a set of ethical guidelines to safeguard the interests of creators. This request was made in a report published on Wednesday.
Copyright infringement occurs when NFTs are created using original content without the permission of the content’s creators and owners, leading to various legal disputes in both the UK and the US.
Dame Caroline Dinenage MP, the chair of the Culture, Media and Sport Committee, voiced concerns about artists facing the unauthorized use and promotion of their hard work, as well as the presence of deceptive advertisements in an already risky NFT market. She expressed these concerns in an accompanying press release.
The committee initiated an investigation into NFTs in November.
The report also raised concerns about certain UK football clubs issuing tokens that grant their members access to various membership benefits, such as participating in club decisions, acquiring merchandise, and enjoying unique experiences. The committee expressed reservations about the potential of fan tokens as a means of fan engagement in the future, citing their price volatility and skepticism among fan groups.
The committee warned that speculating on sports-related crypto assets by football fans could not only harm the financial well-being of fans but also tarnish the reputation of football clubs. They raised concerns about clubs promoting crypto asset schemes that are subject to significant price fluctuations, often with unfulfilled promises of privileges and benefits for supporters.
Additionally, the committee urged individuals and entities promoting NFTs to take responsibility for safeguarding the interests of consumers.