Government Rejects Call for Code of Conduct to Protect Against NFT Copyright Infringement
The UK Government has dismissed calls for the implementation of a new code of conduct to safeguard creators, consumers, and sellers in the rapidly growing world of non-fungible tokens (NFTs). In a report published in October, the Culture, Media and Sport Committee (CMS Committee) raised concerns about copyright infringement risks associated with NFTs in the art industry. However, the Government’s response, released this week, states that it will continue to “monitor developments” rather than take immediate action.
Risks of NFTs in Art and Crypto Assets in Sports Ignored by Government
The CMS Committee’s report also highlighted potential risks posed by the promotion of crypto assets in professional sports. The Committee warned that the increasing use of NFTs in art could lead to widespread copyright infringements, while the promotion of crypto assets in sports could put supporters at risk of financial harm. However, the Government’s response fails to address these concerns and provides no concrete plans to mitigate these risks.
CMS Committee Criticizes Government’s “Wait and See” Approach on Cryptocurrency
Chair of the CMS Committee, Dame Caroline Dinenage MP, expressed her disappointment with the Government’s response. She criticized the Government’s “wait and see” approach, stating that it would allow issues such as copyright infringement and fraudulent advertising to persist in the creative industries and sports. The Committee had called for a new code of conduct to protect creators, consumers, and sellers from infringing and fraudulent material on NFT marketplaces, but the Government has declined to implement such measures.
Impact of Copyright Infringement and Fraudulent Advertising on Consumers and Sports Fans
The government’s refusal to act on the CMS Committee’s recommendations may have serious implications for consumers and sports fans. The proliferation of NFTs in the art world without proper safeguards against copyright infringement could harm both creators and buyers. Additionally, the promotion of crypto assets in sports raises concerns about potential financial scams and reputational damage to clubs. Without a code of conduct or regulatory framework in place, consumers and sports fans remain vulnerable to these risks.
Parliament Provides Further Information on Select Committees and Watching Debates
For those interested in learning more about select committees and how to watch parliamentary debates, the Parliament website provides useful information. Select committees play a crucial role in scrutinizing government policies and holding officials accountable. The website also provides details on how the public can watch committees and debates, offering transparency and accessibility to the parliamentary process.
Image: Pexels
Analyst comment
Negative news: The UK Government has rejected calls for a code of conduct to protect against NFT copyright infringement and risks associated with crypto assets in sports. This “wait and see” approach may lead to persistent copyright infringement, fraudulent advertising, and financial harm for consumers and sports fans. Without proper safeguards, the market remains vulnerable to these risks.
