UK MPs Urge Action Against NFT Copyright Infringement, Crypto Enthusiast Tokens
A bipartisan parliamentary committee has urged the UK government to protect creators from copyright infringement related to non-functioning tokens (NFTs) and to redress the potential harm caused by sports teams issuing digital assets.
At a press conference on October 11, members of the Culture, Media and Sport Committee warned that “the most pressing issue” is the threat to artists' intellectual property rights arising from the ease and speed with which NFTs can be implemented. Artists who want to protect their rights.
Committee chair Dame Caroline Dynage said: “Fraudulent and misleading advertising adds to the risk for investors involved in an inherently risky business when artists are pinched for their hard work and promoted without permission.”
In an accompanying report, the committee recommended that the government work with NFT marketplaces to address these violations by enacting a code of conduct that protects creators, consumers, and sellers from violations and potential fraud.
The committee also warned of the potential harm of sports leagues or teams creating cryptocurrencies to offer to fans and called for the banning of such digital assets.
It follows a number of UK-based football organizations, including Manchester City and Tottenham Hotspur, in issuing “supporter tokens” to supporters and club members. Buying such tokens is supposed to provide special rights and benefits, but the committee found that this was often not the case.
Passion knows no bounds.
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“Furthermore, we are concerned that clubs may offer Supporter Tokens as a form of appropriate supporter engagement, despite their price volatility and position within supporter groups,” the report said.
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The committee said the volatility of these tokens could lead to financial losses for fans who are unaware of the “inherently risky” nature of the asset.
“In the sports world, clubs are introducing flexible crypto asset schemes with the promise of more privileges and benefits to extract more money from their loyal fans.”
The committee concluded that “any measure of fan participation in sport, including future football regulations, should expressly exclude the use of fan tokens.”
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