A British committee made up of members from several political parties wants the country’s government to work with non-fungible token marketplaces to tackle copyright infringement and introduce a code of conduct to better protect creators, according to a report that was released on Wednesday.
Copyright infringement can occur when an NFT is created from a creative work without the permission of the creators and owners. There have been several legal disputes in the UK and US
“Artists risk having the fruits of their hard work pinched and promoted without consent, while fraudulent and misleading advertising adds an extra layer of risk to investors involved in what is already an inherently risky business,” said Dame Caroline Dinenage, MP , chairman of the committee. Committee on Culture, Media and Sport, according to an accompanying press release.
The group launched an investigation into NFTs in November.
Some British football clubs have issued tokens that give members access to membership benefits, such as voting on club decisions, merchandise and unique experiences.
“We are also concerned that clubs may in the future present fan tokens as a suitable form of fan engagement, despite their price volatility and reservations among fan groups,” the report said.
Football fans speculating on sports-based crypto assets could cause financial harm to fans and damage the reputation of football clubs, the commission said.
“In the sports world, clubs promote volatile crypto asset schemes to extract additional funds from loyal supporters, often with promises of privileges and perks that do not materialize,” Dinenage said in the press release.
The committee also asked those promoting NFTs to take responsibility to protect consumers.