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Research by BU academic on NFTs, Blockchain and IP law cited in Parliamentary Report

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A report on ‘NFTs and the Blockchain: the risks to sport and culture’ recently published by the Parliamentary Culture, Media and Sport Committee (CMSC) cites research by Bournemouth University’s (BU’s) Professor Dinusha Mendis.

The report follows the consultation that was conducted by the Department for Culture, Media and Sport (DCMS) in November 2022 and outlines how Non-Fungible Tokens (NFTs) and blockchains should be tackled in the future, particularly in relation to art and culture; professional sport and advertising.

In relation to intellectual property rights (IPRs), the report cites copyright infringement, limited recourse and redress (for consumers and creators), the scale of infringement, consumer confusion and the inflexibility of transferring IP as the main issues that needs consideration.

In responding to these issues, the report cites the research by Prof. Mendis calling for more protection for consumers and creators as a result of rising IP infringements, scams and frauds. The report also identifies the unique nature of NFTs and blockchains and cites Prof. Mendis’ research in demonstrating how current laws – such as ‘notice and takedown’ or ‘the right to be forgotten’ – which apply in other circumstances relating to piracy and counterfeiting, may not necessarily apply to online marketplaces. As such, the report recommends a code of conduct to be adopted by online platforms dealing with NFTs.

The hype surrounding NFTs was short-lived and in mid-2022, investors saw a collapse in the NFT market. However, as the report states, “cryptoassets such as NFTs continue to have advocates … [and] even if NFTs never again reach the peak they achieved over the last few years, areas of concern [in relation to regulation] remain”.

As such, based on the research presented in this report relating to intellectual property, the CMSC recommends that the “Government engages with NFT marketplaces to address the scale of infringement and enable copyright holders to enforce their rights”. In relation to sports, the report identifies the financial risks and harm which NFTs present to fans and the reputational harm it presents to clubs and recommends that “any measurement of fan engagement in sports, including in the forthcoming regulation of football, should explicitly exclude the use of fan tokens”.

Finally, in relation to advertising, and once again citing the research by Prof. Mendis, the report recommends that the Government respond to misleading and/or fraudulent advertising for NFTs.

For further information and for the full report, please see here: https://committees.parliament.uk/publications/41611/documents/205745/default/

CIPPM Co-Director publishes three Reports for the UK Government detailing the IP Implications of 3D Printing

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CIPPM Co-Director Dr. Dinusha Mendis together with Dr. Davide Secchi (From April 2015, Associate Professor, University of Southern Denmark) and Dr. Phil Reeves of Econolyst Ltd have published a sequence of three reports on the intellectual property implications of 3D printing resulting from a project commissioned by the UK Intellectual Property Office.  The three reports can be accessed here.

In 2012, the Big Innovation Centre, in their Report ‘Three Dimensional Policy: Why Britain needs a policy framework for 3D Printing’ provided a number of recommendations.  A key recommendation was to review the intellectual property (IP) implications of 3D printing.

In 2013, the UKIPO highlighted the lack of empirical evidence relating to 3D printing and the difficulty in determining whether this emerging technology will have an impact on IP laws.  The aim of the current project was therefore to respond to this limited research.  In doing so, the Studies adopted a legal, quantitative and qualitative approach.

Study I titled ‘A Legal and Empirical Study of Online Platforms and an Analysis of User Behaviour’ explores 17 online platforms dedicated to 3D printing and provides a legal and empirical overview of how the online platforms operate and aims to provide a clearer understanding of ‘how’ the sharing happens.  In this context, Study I provides an understanding of the ‘parameters’ for sharing, e.g. terms and conditions, rules and regulations that apply, together with restrictions and bounds that apply to the user behaviour and file-sharing.  As such, Study I evaluates the extent of this phenomenon amongst users.  In doing so, the research examines the price, downloads, licences, type of physical objects, which are shared and the implications for intellectual property laws and in particular analyses the legal provisions arising from the sharing and the copyright implications relating to software.  As such, Study I presents new findings on the current status of 3D printing relating to online platforms.  

Study II titled ‘The Current Status and Impact of 3D Printing Within the Industrial Sector: An Analysis of Six Case Studies’ explores the status, impact and adoption of 3D printing in the Replacement Parts, Customised Goods and High Value Small Status Goods Industries.

To map the impact that 3D printing technology is having on the UK’s economic and legal landscape, Study II represents six case studies which consider the current and future consequence of 3D printing.  The first two case studies address issues relating to Replacement Parts and consider how 3D printing will affect the supply of aftermarket parts to the consumer.  The two case studies within the Customised Goods theme address how 3D printing enables unique products to be manufactured that are tailored to consumers’ needs, and the IP challenges that arise from this. Finally, the two case studies within the High Value Small Status Goods theme look at the impact that 3D printing is having on consumer products that have a low functional purpose, such as collectible figurines or sculptures.

The third publication – an Executive Summary – brings together the findings and conclusions from the two Studies and provides recommendations.

The Studies concluded that there is no urgency to legislate at present as 3D printing is not a mass phenomenon yet.  It warned that a premature call for legislative and judicial action in the realm of 3D printing could stifle the public interest of “fostering creativity and innovation and the right of manufacturers and content creators to protect their livelihoods”.

However, as 3D printing continues to grow it is important to address the IP issues arising in this area in order to cultivate a climate better suited to tackling impending IP issues more successfully and in a manner, which takes into account the interests of all stakeholders.

As such, the Studies make some important recommendations to Government, the Industry and Intermediaries (online platforms) about how to regulate 3D printing without resorting to legislation.

Recommendations to Government suggest the setting up of a Working Group to review the technology and the IP status particularly the position in relation to the software (Computer-Aided Design (CAD) Files) and the traceability of spare parts. The Reports also suggest that the Government should adopt a ‘wait-and-see’ approach.

The Studies conclude that 65% of users engaged in the activities of 3D printing on online platforms do not license their work, leaving their creations vulnerable and open to infringement whilst losing the ability to claim authorship. The Study therefore recommends that online platforms provide more awareness and understanding of the different types of licences. The Study suggests that this aim can be achieved by explaining the nuances relating to each licence in clear and simple language, rather than simply ‘encouraging’ the user to adopt a particular type of licence. Furthermore, online platforms can assign the most appropriate licence as a default with ‘opt-out’ as an option.

Finally, in relation to Industry, the Study recommends the adoption of new business models and provides a number of suggestions in this regard. The Reports also suggest the licensing of CAD files more widely, thereby opening up doors to a range of outlets selling 3D CAD files. This will avoid locking the manufacturer into an agreement through a system such as a ‘one-stop-shop’ for (spare) parts. Although a one-stop-shop may take away the costs of manufacture, transportation and storage whilst reducing potential infringement of IP laws, it can lead to a monopoly-situation, which should be avoided.

A press release led to the research being picked up by various media outlets including IPP Pro, Pan European Networks, Phys.org, Nanowerk and 3Dprint.com amongst others.

A further write-up of the research was published by the UKIPO following the publication of the reports.  Bournemouth University’s Research Chronicle also presented a feature article in March 2015 on the research and its findings.

Following the publication of the reports, Dr. Dinusha Mendis, the Principal Investigator of the project, was invited by the Australian Government to present the research in March 2015, highlighting the impact of this research in another jurisdiction.  Dr. Mendis also presented the research in March at the University of Tasmania in Australia and the Swinburne University of Technology, Melbourne.

CIPPM Researchers launch Copyright Resource for A/AS Level Media Studies

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Researchers at the Centre for Intellectual Property Policy and Management (CIPPM) in collaboration with CREATe, the RCUK Centre for Copyright and New Business Models in the Creative Economy at the University of Glasgow have launched an educational web resource aimed at A/AS Level Media Studies. The project, which was carried out during 2013-2014, was funded by RCUK under a contract with CREATe, University of Glasgow (Principal Investigator: Dr. Dinusha Mendis, Co-Director, CIPPM).

The Centre for Excellence in Media Practice (CEMP) at Bournemouth University is also part of the collaboration.

The web resource and downloadable PDF forms part of the already established Copyrightuser.org  (initially funded by the Fusion Investment Fund, 2012-2013) and is titled, Contemporary Media Regulation: A Case Study in Copyright Law.

In particular, this educational web resource addresses Critical Perspectives in Media, Section B: Contemporary Media Issues and was approved by Oxford Cambridge and RSA (OCR) Examination Board at their Annual Conference on 21 March 2014.

The resource was disseminated to a large network of Schools in England and Wales in January 2015 and during 2015-2016, the researchers will map the impact of this educational resource by identifying how many Schools / students have opted to study Copyright Law as part of the Critical Perspectives in Media, Section B: Contemporary Media Issues.

The value of this educational resource has already been identified by the UK Government.  In October 2014, Copyrightuser.org was mentioned by Mike Weatherley MP in his report Copyright Education and Awareness, in which he specifically mentioned this resource as an attempt to introduce copyright law into the AS/A Level Media Studies curriculum in schools in England and Wales. A write-up about it can be found here.

The content is shaped to enable teachers to explain the complexity and importance of copyright in media, and for the students to research copyright regulation and demonstrate their understanding within the Contemporary Media Regulation exam question.

This educational resource provides teachers with simple and straightforward information about copyright law. The focus is to bring together different perspectives on copyright issues. There is a consideration of the historical, contemporary and future copyright issues, with an emphasis on present.

The resource was formally launched in February 2015 by the Arts and Humanities Research Council (AHRC) and the press release titled ‘What we Should Teach Students about Copyright Law’ can be accessed here.

The educational resource was produced by a team consisting of:

Authors: Ms. Hayleigh Bosher and Dr. Dinusha Mendis (CIPPM)

Illustrations: Mr. Davide Bonazzi

Editor: Professor Ronan Deazley (Professor of Copyright Law, CREATe, University of Glasgow)

Educational Resource Development: Dr. Julian McDougall (CEMP)

Production: Mr. Bartolomeo Meletti (CREATe, University of Glasgow)

Questionnaire Respondents: see here