The bipartisan parliamentary committee of the UK has called on the government to safeguard the rights of creators against copyright violations linked to NFTs.
They have stressed in a press release the necessity to handle any potential problems that could arise from sporting groups issuing digital assets.
The committee members emphasized that the threat to artists’ intellectual property rights is the most pressing issue. This is partly because the creation of NFTs is a quick and simple process, in contrast to the drawn-out legal processes that artists must go through to defend their rights.
The committee’s leader, Dame Caroline Dinenage, noted that artists run the risk of having the results of their labor stolen and promoted without their consent. Fraudulent and deceptive advertisements also put investors in an already risky industry at risk.
The committee has recommended that the government work with NFT marketplaces to address copyright infringement problems by putting in place a code of conduct that safeguards creators, buyers, and sellers in an effort to stop the sale of fake or potentially fraudulent content on these platforms. This recommendation is contained in an accompanying report.
The committee has suggested that these digital assets be outlawed due to its concerns regarding the possible risks involved with sports leagues or teams developing their own cryptocurrency for supporters.
It comes after some British football clubs, including Manchester City and Tottenham Hotspur, started giving “fan tokens” to their fans and club members. These tokens are advertised as offering special benefits and privileges, but the committee claims that they frequently fall short of living up to their claims.
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