Trademark in Metaverse

What exactly is the metaverse? To put it simply, it is a virtual space in which users can and will interact and connect with one another in a variety of ways - gaming, collaborating, shopping, and exploring - without leaving the comfort of their couch. Some of these features are already available in gaming platforms.

Many of these new virtual experiences or goods will have the added allure of being an NFT. And a lot of non-imaginary value will be created as participants in this new virtual and augmented reality spend real money, albeit in the form of digital currencies.

While the metaverse is still in its early stages, it has established itself in a number of industries. The gaming universe, for example has been a leader in developing new space, with gamers able to make in-game purchases using the virtual in-game currency of digital objects, like "skins".

There will be a slew of legal issues in the metaverse, just as there are in the physical world. Privacy and data collection, antitrust or anti-competition, free speech and defamation, and intellectual property issues ranging from copyright to patents to trademarks are all topics covered. Protecting brands in the metaverse will be critical for brand owners, and preparing to play in the new meta sandbox will necessitate a legal strategy.

In terms of ownership, NFTs require special consideration. They can sell for millions of dollars as a one-of-a-kind virtual item. Christie's auctioned off an NFT by the artist Beeple for USD 69 million to a meta collector. If something goes wrong, the enormous price tags for such virtual property will undoubtedly spark heated legal challenges.

As they seek to expand in the metaverse, brand owners should consider how to build their virtual marketplace with appropriate trademark registrations, a robust policing strategy, and appropriate licences and terms of use (mindful to avoid legalese to ensure users are not put off from participating). If these trademark issues are handled carelessly, consumer goodwill may suffer if they become dissatisfied with the way branded virtual merchandise is marketed in the metaverse. A faux pas in the metaverse, as on social media, is likely to have immediate negative consequences for the brand.