Source · Select Committees · Culture, Media and Sport Committee
Recommendation 1
1
Rejected
Paragraph: 18
Introduce a code of conduct for online marketplaces protecting creators from infringing material.
Recommendation
Intellectual property laws and copyright protection are central to enabling artists to create, innovate and make a living from their work. Emerging technologies that undermine these protections have a profound impact on individual artists and the UK’s world-leading creative industries more generally. We recommend that the Government engages with NFT marketplaces to address the scale of infringement and enable copyright holders to enforce their rights. The Government should also address the impact of safe harbour provisions by introducing a code of conduct for online marketplaces operating in the UK, including NFT marketplaces, that protects creators, consumers and sellers from infringing and fraudulent material sold on these platforms.
Government Response Summary
The government rejects introducing a new code of conduct for online marketplaces, including NFT marketplaces, citing that previous stakeholder engagement showed it wasn't needed and there's no new evidence to change this assessment; however, it will engage with NFT marketplaces to understand infringement threats.
Paragraph Reference:
18
Government Response
Rejected
HM Government
Rejected
The Government understands the concerns raised during the Committee’s inquiry that new technologies such as NFTs create new opportunities for infringement of intellectual property rights. We recognise these concerns and the need for practice to stay apace with technological developments. This is why the UK has a robust and flexible enforcement framework that protects creators, consumers and sellers from Intellectual Property (IP) infringing material sold on a wide range of online marketplaces. The Government believes that a holistic approach is required to tackle online infringement across a range of platforms. This includes a broad range of measures and legal powers, complemented by voluntary practice and practical tools, to achieve an online world that is safe for both IP rightsholders and consumers. The law which regulates the liability of online marketplaces and other intermediaries (often referred to as ‘safe harbour provisions’), provides robust protection against infringement of IP rights. The Government previously considered creating a code of conduct for online marketplaces focused on intermediary liability, but extensive stakeholder engagement showed that a code was not needed at that time. We are not aware of any evidence that would change this assessment in relation to NFT marketplaces. Therefore, the Government does not intend to introduce a new code of conduct for online marketplaces, including NFT marketplaces. Nonetheless, the Government is aware of the potential for NFT marketplaces becoming increasingly popular and understands that the development of new technologies raises questions about its interaction with intellectual property rights. For this reason, the Government continues to monitor developments and will engage with NFT marketplaces to better understand the potential threats of IP infringement posed by those platforms.