The bipartisan parliamentary committee of the United Kingdom has called on the government to safeguard the rights of creators against copyright violations linked to non fungible tokens (NFTs).
In a press release they have emphasized the need to address potential issues arising from sports organizations issuing digital assets.
The committee members stressed that the most immediate concern is the threat to artists’ intellectual property rights, primarily due to the rapid and uncomplicated process of creating NFTs, which stands in contrast to the sluggish procedures artists face when seeking to protect their rights.
“Artists are at risk of seeing the fruits of their hard work pinched and promoted without permission while fraudulent and misleading adverts add an extra layer of jeopardy for investors involved in what is already an inherently risky business,” said committee chair Dame Caroline Dinenage.
In an accompanying report, the committee has suggested that the government collaborate with NFT marketplaces to tackle issues related to copyright infringement by implementing a code of conduct that protects creators, buyers, and sellers, aiming to prevent the sale of counterfeit or potentially fraudulent content on these platforms.
The committee has expressed concerns about the potential risks associated with sports leagues or teams creating their own cryptocurrencies for fans and has recommended that these digital assets should be prohibited.
It follows several U.K.-based football organizations like Manchester City and Tottenham Hotspur issuing “fan tokens” to their supporters and club members. These tokens are marketed as providing exclusive privileges and advantages, but the committee argues that they often fail to deliver on these promises.