Trademarks in the metaverse

• Author: Kathryn Park
• Position: Principal, Strategic Trademark Initiatives, Connecticut, USA

While the metaverse is still developing, it has gained a foothold in a number of sectors and is expected to expand and become an ever richer environment for users. (Photo: Diamond Dogs / iStock / Getty Images Plus)

What is envisioned is nothing short of a sophisticated make-believe world in which consumers can experience life virtually. For example, shoppers can buy virtual products, online simulacrums of a real item with which to adorn their avatar or can attend concerts and sporting events as virtual VIPs, buy expensive and unique works of art, drive virtual autos or yachts, travel and dine in special and exotic locations and more. The metaverse is expanding day by day.

Many of these new virtual experiences or goods will have the added allure of being an NFT (read more about IP and NFTs), a unique digital creation. And lots of not so imaginary value will be created, as consumers of this new virtual and augmented reality spend real money, albeit in the form of digital currencies, to participate.

While the metaverse is still developing, it has gained a foothold in a number of sectors. 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”.

Sports leagues are joining in, with opportunities for purchasing NFT trading cards, or attending the next generation of fantasy league events. Participants can attend a virtual musical event like a concert by American rapper Travis Scott. This is just the beginning. The metaverse is expected to expand, becoming a richer environment for the user community.

Meta, the Mark Zuckerberg-led company that owns Facebook, is deep in development as it attempts to capture the bounty of the Metaverse for itself. But other tech companies, from Microsoft to gaming companies like Nvidia and Roblox, are equally eager to capture as much real estate in the metaverse as they can.

As is the case in the physical world, there are a host of legal issues that will arise in the metaverse. Privacy and data collection, antitrust or anti-competition, free speech and defamation, as well as intellectual property issues, from copyright to patents to trademarks. For brand owners, protecting their brands in the metaverse will be critical, and getting ready to play in the new meta sandbox will require a legal strategy.

Brand owners should be considering how to construct their virtual marketplace with appropriate trademark registrations, a robust policing strategy and...