A bipartisan UK parliamentary committee has pressed the government to strengthen protections for creators against copyright violations associated with trading non-fungible tokens (NFTs) of digital art and collectibles.
In a statement, the committee warned of threats to artists’ intellectual property rights as NFTs spread without commensurate safeguards for original owners.
Preventing NFT IP Theft and Fraud
Committee chair Dame Caroline Dinenage stated: “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.”
The committee advocated for collaborating with NFT marketplaces to implement a code of conduct addressing copyright risks and preventing sales of counterfeit or fraudulent NFT content.
Scrutinizing Sports Fan Token Offerings
The UK committee also expressed concerns around sports teams issuing crypto “fan tokens” with exclusive benefits marketed to supporters and members.
Citing teams like Manchester City and Tottenham Hotspur, the committee argued these tokens often fail to deliver promised advantages and should face prohibition.
Balancing Innovation With IP Protections
As adoption of emerging digital collectibles like NFTs accelerates, policymakers face tricky balancing acts around enabling innovation while defending content creators’ rights.
By championing prudent regulations now, the UK parliament committee aims to promote ethically functioning NFT markets where original artists flourish and consumers receive fair value.
Their recommendations underscore that realizing the positives of novel technologies requires establishing rules and norms to prevent foreseeable downsides early on.