April 19, 2024
UK Lawmakers Address NFT Copyright and Sports Crypto token
NFT

UK Lawmakers Address NFT Copyright and Sports Crypto Tokens

A bipartisan parliamentary committee in the United Kingdom has called on the government to take action in safeguarding the rights of creators concerning nonfungible tokens (NFTs) and addressing potential issues arising from sports organizations issuing digital assets.

The committee, comprised of members from the Culture, Media, and Sport Committee, has identified the “most pressing issue” as the risk to artists’ intellectual property rights in the context of NFTs. They emphasized the concern that NFTs can be easily and rapidly created, while artists face a slower and more cumbersome process to enforce their rights. The committee’s chair, Dame Caroline Dinenage, expressed that artists risk having their work misappropriated and promoted without permission, and this issue is exacerbated by fraudulent and misleading advertisements, creating additional risks for investors in an already inherently risky market.

In a report accompanying the press release, the committee recommended that the government collaborate with NFT marketplaces to combat infringements by introducing a code of conduct. This code of conduct would aim to protect the rights of creators, consumers, and sellers by preventing the sale of infringing and potentially fraudulent materials on these platforms.

The committee also raised concerns about sporting leagues or teams creating cryptocurrencies to offer to their fans. It specifically called for any metrics measuring fan engagement to exclude such tokens. This concern arises as several U.K.-based football organizations, including Manchester City and Tottenham Hotspur, have introduced “fan tokens” for their followers and club members. These tokens are intended to provide exclusive rights and benefits to fans, but the committee found that this is often not the case. They expressed worries that clubs may continue to promote fan tokens as a form of fan engagement in the future, despite the price volatility and reservations among fan groups. The committee argued that the instability of these tokens could financially harm fans who are unaware of the inherently risky nature of such assets.

Image by pikisuperstar on Freepik

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