British MPs Call for Action on NFT Copyright Infringement and Crypto Fan Tokens

Protecting Creators' Rights

A bipartisan parliamentary committee in the UK has urged the government to take action in protecting creators from copyright infringement related to nonfungible tokens (NFTs). The committee expressed concern over the ease and speed at which NFTs can be minted, compared to the slow process of enforcing artists' intellectual property rights.

Code of Conduct for NFT Marketplaces

The committee recommended that the government collaborate with NFT marketplaces to address these infringements by implementing a code of conduct. This code of conduct would safeguard creators, consumers, and sellers from fraudulent and potentially harmful material being sold on these platforms.

Concerns Over Sporting Groups and Cryptocurrencies

The committee also raised concerns over sporting leagues and teams creating cryptocurrencies to offer to fans. It called for a ban on such digital assets due to their potential harms. The report highlighted the release of "fan tokens" by football organizations like Manchester City and Tottenham Hotspur, stating that the promised exclusive rights and benefits often did not materialize.

Protecting Fans from Financial Harm

The committee emphasized that the volatility of these tokens could lead to financial harm for fans who are unaware of the risks associated with such assets. It criticized clubs for promoting crypto asset schemes without adequately informing supporters about the inherent risks involved.

Exclusion of Fan Tokens in Sports Regulation

The committee concluded that any measurement of fan engagement in sports, including regulation of football, should explicitly exclude the use of fan tokens. It expressed concerns about clubs presenting these tokens as a form of fan engagement despite their volatility and reservations among fan groups.