In a bid to combat copyright violations tied to nonfungible tokens (NFTs) and deter potential misuse of digital fan tokens by sports entities, a cross-party parliamentary committee in the UK has called for immediate action.
The Culture, Media, and Sport Committee pinpointed the swift creation of NFTs as a significant threat to artists’ intellectual property rights. With NFTs being minted faster than artists can safeguard their rights, many creators find their work being used and promoted unauthorizedly. “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,” highlighted committee chair, Dame Caroline Dinenage.
To tackle this, the committee’s report advocates for a collaboration between the government and NFT platforms. Introducing a code of conduct will ensure that creators, consumers, and sellers remain protected from copyright breaches and deceptive content on these digital platforms.
Moreover, the committee expressed apprehension over sports clubs, including premier football organizations like Manchester City and Tottenham Hotspur, launching fan tokens. These digital assets, promoted as exclusive tokens providing special rights and perks, often do not deliver on their promises. The report remarked that despite being pitched as valuable fan engagement tools, these tokens are highly volatile, leading to potential financial risks for unsuspecting fans.
The committee firmly believes that such tokens should not be considered a genuine measure of fan engagement. Emphasizing their stance, they stated that fan tokens should be explicitly left out of any official metrics assessing fan participation in sports, especially in impending football regulations.
By taking these steps, the committee aims to establish a safer digital realm for both creators and sports enthusiasts.
Source: https://cointelegraph.com/news/uk-committee-urges-nft-rules-sport-fan-crypto-token-ban
Image: https://unsplash.com/photos/D68vlyckZhs
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