02-Jan-2024
Written by: Faisal Amaan
INTRODUCTION
The concept of the metaverse is seen as a potential progression in the development of the internet. The term “metaverse” was first introduced by Neal Stephenson in his 1992 literary work titled “Snow Crash.” In which, Stephenson portrays a virtual reality realm through a virtual reality headset where individuals engage in various activities such as employment, recreation, and commerce.
The idea of a metaverse is becoming more and more evident as new technologies such as virtual reality, enter into the market. In the world of the internet, the “metaverse” referred to as a virtual shared space, where users engage with one another through avatars and digital assets. This virtual shared space offers a fresh possibility for creative expression, business ventures, and social interaction. To put it simply, the term “metaverse” is used to describe a computer-generated virtual world where people can interact socially or professionally, depending on their needs.
As the nature of the internet is evolving day by day, it has led to an increasing sense of urgency regarding infringement of intellectual property (IP) rights. The metaverse encompasses a wide range of legal complexities related to IP that require careful navigation.
In this article, we explore into the intricate legal aspects surrounding IP rights in the metaverse and explore how one can navigate these evolving challenges.
INTELLECTUAL PROPERTY IN THE METAVERSE
The concept of IP in the metaverse is similar to that in the real world. As a range of creative works, artistic work, symbols, names, marks, and images are all considered forms of IP in the metaverse. Not only this, the metaverse also accepts novel digital manifestations, especially Non-Fungible Tokens (NFTs), which are an asset based on the blockchain concept, which is a unique form of IP where one person creates a form of digital asset and sells it to the users who are interested in it. The concept of NFTs has been hyped in recent times as it is a new form of cryptocurrency in which many users were interested.
The data in metaverse depends on user-generated content (UGC), which is made and shared by users. With the rapid growth of the internet, crime related to IP infringement is also increasing as users start sharing, posting, or copying any UGC material available on the internet, which includes but is not limited to any avatar, original video content, music, or images, to their social media platform or on YouTube without seeking consent or sharing any royalty with the real owner. The ownership of works produced within the metaverse is a difficult and unanswered question as it is very difficult to identify the real ownership of who owns or created the UGC.
With the popularity of the metaverse, many brands are involving themselves in this technology to earn more profit by publishing their brands and NFTs in the metaverse to reach a wider audience and create new customers. However, with the wide range of metaverses, other users started sharing and copying their trademark products or copyrighted work for their personal gain without seeking approval, which is a major IP infringement.
The case of Hermes v. Mason Rothschild, which has gathered recent attention, serves as a notable illustration of the convergence between trademarks and non-fungible tokens (NFTs). This legal dispute brings to the forefront crucial inquiries regarding the scope of real-world trademark protections and their applicability within the metaverse in which premium brand Hermès initiated legal action against NFT developer Mason Rothschild on grounds of trademark infringement.
HOW TO OVERCOME THESE CHALLENGES
Multiple international treaties, such as the Berne Convention and the WIPO Copyright Treaty, form the basis for the legal framework that ensures IP security in the metaverse. The majority of the world's countries have agreed with this convention's core conditions for copyright protection. However, in order to legislate a solution, various legal measures such as patents, trademarks, and copyrights that are specific to the metaverse need to be endorsed. These safeguards will play a crucial role in ensuring that creators and innovators are granted exclusive rights to their inventions, designs, and creative works within the metaverse.
For example, patents can provide legal protection for the functional components of virtual objects, encompassing the underlying technologies employed in their creation. Trademarks serve as a means of safeguarding the branding and logos affiliated within metaverse enterprises, whereas copyrights provide protection for the artistic components found within metaverse, including but not limited to avatars, UGC and various other digital content. By implementing these measures, individuals and businesses can safeguard their IP and prevent unauthorized use or infringement in the metaverse, including the ownership of digital assets, the protection of IP, and the confidentiality of user data.
Furthermore, it is imperative for businesses operating within the metaverse to establish terms of service agreements that users must adhere to. The aforementioned agreements will delineate the guidelines and protocols governing the utilization of the metaverse, while also establishing the entitlements and responsibilities of both businesses and users.
Moreover, education plays a significant part in promoting users in understanding of their rights and responsibilities within the metaverse, which is a critical function to play.