A group made up of representatives from several political parties in the UK wants the government to cooperate with non-fungible token marketplaces to combat copyright infringement and establish a code of conduct to better protect authors, according to a study made public on Wednesday.When an NFT is made from a creative work without the owners’ or creators’ consent, copyright infringement may have taken place.There have been various court cases in both the UK and the US.
“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,” Dame Caroline Dinenage MP, chair of the Culture, Media and Sport Committee, said in an accompanying press release.
In November, the group began looking into NFTs.Some English football teams have started issuing tokens that allow supporters to access membership benefits including voting on club decisions, goods, and one-of-a-kind events.
“We are also concerned that clubs may present fan tokens as an appropriate form of fan engagement in the future, despite their price volatility and reservations among fan groups,” the report said.
The committee warned that football supporters who speculate on crypto assets based on sports might jeopardize their finances as well as the standing of football clubs.
“In the world of sport, clubs are promoting volatile crypto asset schemes to extract additional money from loyal supporters, often with promises of privileges and perks that fail to materialize,” Dinenage said in the press release.
The committee urged people who support NFTs to accept accountability for safeguarding consumers.