UK Committee Urges Government to Safeguard Artists from NFT Infringements, Warns Against Sports Crypto
Summary:
A UK legislative committee advises the government to defend creators from NFT-related copyright infringements and mitigate risks from sports entities issuing digital assets. The committee stresses urgency to protect artists' intellectual property rights due to the swift creation of NFTs. They propose a code of conduct with NFT marketplaces to curb violations. The committee also warns against the dangers of sports organizations launching crypto offerings for fans, advocating to outlaw such digital assets. They caution about the potential economic detriment to unsuspecting fans due to token volatility.
A mixed-party UK legislative committee has advised the government to provide safeguards for creators against copyright violations linked to nonfungible tokens (NFTs), as well as address potential risks posed by sports organisations floating digital assets. On 11 October, the Culture, Media and Sport Committee stressed the urgent need to protect artist’s intellectual property rights, which are in danger due to the swift and easy creation of NFTs, contrasted with slow rights enforcement. Dame Caroline Dinenage, the committee chair, highlighted the threat of artists’ work being illegally reproduced and sold, coupled with misleading advertising, that adds to the risks for those investing in this inherently risky market. They proposed a code of conduct, developed in collaboration with NFT marketplaces, to curb these violations and protect artists, consumers and sellers from fraudulent materials. The committee also emphasised the dangers of sports organisations launching crypto offerings for their fans, advocating to outlaw such digital assets. They noted the trend among UK football clubs like Manchester City and Tottenham Hotspur offering fan tokens, claiming these as fan benefits, although, according to the committee, this often fails to materialise. The report raised concerns over these tokens being viewed as suitable forms of fan engagement, notwithstanding their price volatility and scepticism among fans. The committee warned about the potential economic detriment to unsuspecting fans due to token volatility. They reported “sports clubs are endorsing changeable crypto-asset schemes to extract extra funds from faithful fans with often unfulfilled promises of benefits and special treatment”. The report concluded with a recommendation to explicitly exclude fan tokens from any measurement of fan involvement in sports.
Published At
10/11/2023 4:22:55 AM
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