It’s been a busy start to the year for the NFT marketplace, as trading volumes hit record highs. Illicit activity, however, has also drawn the attention of governments from around the world. HitPiece is an NFT marketplace focused on Music.
HitPiece is an NFT marketplace aiming to be “the place for music NFTs online”. The HitPiece goal is to provide artists a platform to earn royalties from NFT sales and a perpetual income stream from the trading of the NFTs.
HitPiece Caught Out Selling Music Without Artist Permission
Last week, HitPiece hit the news wires for all the wrong reasons. Reports of HitPiece selling NFTs without the permission of artists caused a stir in the music world. More significantly, HitPiece was also reportedly creating NFTs without the knowledge of artists.
A HitPiece apology on Twitter received greater condemnation and raised the prospects of action from regulators and even law enforcement. The U.S courts take a hard line against digital crimes and copyright infringements.
There have been a number of major music industry copyright cases in recent years. Cases have included The Verve v The Rolling Stones, Vanilla Ice v David Bowie and Queen, Robin Thicke & Pharrell Williams v Marvin Gaye, and Roy Orbison v 2 Live Crew amongst others.
While Vanilla Ice paid an undisclosed sum to Bowie and Queen after losing in court, the Thicke & Williams case was one of the most punitive. The pair reportedly had to pay $5.3m in damages and 50% royalty fees to the estate of Marvin Gaye. According to the report, this was one of the largest payouts in the history of music copyright cases.
Lawyers Look to Put an End to HitPiece Infringements
Considering the stance of the courts on copyright infringement, HitPiece could be in for a tough time ahead. Overnight news hit the wires of the Recording Industry Association of America (RIAA) sending a demand letter to HitPiece attorneys.
The RIAA is demanding that HitPiece ceases and desists from NFT sales. Within the letter, the RIAA called on HitPiece to stop infringing on the rights of musicians and to accept responsibility for the selling of music NFTs without the consent of the artists involved.
Failure for HitPiece to comply will undoubtedly result in the involvement of the courts. For the broader market, it puts the spotlight back on the NFT marketplace that has seen illicit activity surge in recent months. As a result, NFT activity has also drawn the interest of regulators.
A regulatory framework is likely to hit the NFT marketplace in the months to come amidst heightened regulatory scrutiny.
This article was originally posted on FX Empire