Until recently, interacting in virtual environments was an idea only conceivable in science fiction movies. Today, this has changed. The metaverse exists! It is one of the most globally discussed technological innovations! And it was no surprise that numerous brands were interested in launching products and promoting themselves in this virtual environment. Connecting with young and technologically sophisticated consumers is an opportunity that few renowned firms are willing to miss. Although doubts persist about its future, the race to secure intellectual property (IP) rights and trademark protection in the metaverse has already begun. It is likely that the way these rights are protected and enforced in the coming years will be significantly influenced by advances in this digital realm.
Basic elements to understand the importance of trademark protection in the metaverse
In simple terms, the metaverse would be a combination of virtual reality (VR) and augmented reality (AR), supported by blockchain technology and digital media concepts that allow for the creation of a 3D virtual world. All of this enables users in such immersive environments to establish social connections and interact as if they were real-world experiences. For those unfamiliar with this trend, what we just said might sound crazy.
In this context, registered trademarks are fundamental for identifying and giving identity to virtual goods, services, and entities. They help consumers distinguish between products, provide legal protection against unauthorized use of intellectual property, and foster brand recognition and trust within the digital sphere. Seen this way, trademark protection in the metaverse safeguards the identity, reputation, and integrity of virtual goods, experiences, and businesses.
Protection in the metaverse beyond law
Indeed, the metaverse offers trademark holders a unique opportunity to extend their presence into the virtual space in an innovative way. This enhances brand recognition and consumer trust. By employing registered and consolidated trademarks in the digital realm we are discussing, companies will be able to establish a solid connection with their users. This creates a differentiation with respect to the competition and allows them to leverage their brands as powerful marketing assets.
In fact, many corporations are already formulating specialized marketing strategies aimed at leveraging the great potential and opportunities offered by this new virtual environment. A very relevant characteristic is that the metaverse requires companies to adapt to its particular communication approach. This implies that interactions fit the context of each platform. The idea is to ensure an effective relationship with the unique audience that frequents these spaces. Come on! It’s more or less like what happens with the social media platforms we know.
Now, as firms increasingly orient themselves towards establishing themselves in the virtual universe, it is essential to properly register their trademarks. In this way, their virtual assets are protected under strong trademark protection in the metaverse. For these purposes, brand strategy must include strong control mechanisms, appropriate licensing agreements, and well-defined terms of use. Only in this way will companies be able to safely navigate the virtual environment we are referring to and exploit its full potential.
Towards legislation on metaverse and trademarks
To tell the truth, there is no specialized regulation for the metaverse at present. Creating laws applicable to interaction in such spaces will require criteria that go beyond traditional law. In this sense, it is essential to address issues related to digital rights, intellectual property, data protection, and other critical aspects in this digital era.
Globally, registering trademarks in the metaverse is a novelty. Hence, firms like Coca-Cola, Prada, Nike, Ferrari, and Gucci are pioneers in filing applications to register their trademarks in the virtual realm to promote and sell their products there.
As metaverse platforms continue their global expansion, companies worldwide are increasingly seeking trademark protection for virtual goods and services online. For example, the European Union Intellectual Property Office (EUIPO) warns of an increase in trademark protection applications in the metaverse through the registration of these and various digital assets.
By the way, several trademark disputes have been resolved in legal proceedings. Among the most notable are Nike’s lawsuit against StockX for trademark infringement regarding its NFT sneakers. On the other hand, there is the lawsuit that Hermès won against artist Mason Rothschild for his “MetaBirkins,” a collection of 100 NFT images in which he reproduced elements of its recognized Birkin bags. In Nike’s case, the plaintiff was able to argue that virtual goods can constitute a representation or proof of ownership of a physical product.
Registered trademark and virtual products or goods
Suppose you proceed to register a trademark in Spain. Once this registration is granted, you acquire rights as the holder and consolidate your company’s legal position. Likewise, you will have access to specific legal mechanisms to prevent third parties from making unauthorized use of your trademark.
The problem is that currently there are no precise legal definitions of terms such as “digital products” and “virtual goods.” What uncertainty! If something is basic for solid protection of virtual assets, it is that trademark legislation has very specific definitions and classifications. And, of course, that it also has efficient administrative systems.
Trademark rights in the metaverse
As you can see, digitalization is transforming the way consumers acquire and own goods. In particular, the metaverse introduces completely new challenges in terms of ownership and rights over virtual products. Unlike physical goods, whose ownership is completely transferred to the buyer once the purchase is made, virtual goods are subject to significant restrictions. The big question is: what rights does a user truly have over a digital item they acquire in a virtual environment?
Have you played Fortnite? Well, this video game is a very illustrative example of what we are proposing. On the aforementioned platform, players buy virtual items such as “skins” for their avatars, but their ownership is conditioned on remaining within the platform. Contrary to what happens with a tangible asset, these digital items cannot be freely resold or transferred without restrictions, as their use is linked to specific license terms.
If the metaverse evolves into an interoperable ecosystem, where digital goods can be used across multiple platforms, the question of buyer’s rights will become even more critical. Will users be able to transfer their virtual assets between different digital spaces, or will they be limited to a specific environment controlled by the provider?
On the other hand, NFTs (Non-Fungible Tokens) have added an additional layer of complexity to this discussion. By representing unique digital assets with significant value, NFTs have generated disputes over ownership and use rights. Examples like the sale of Beeple’s NFT for 69 million dollars highlight the need for clarity regarding intellectual property rights associated with these digital assets. By the way, be sure to read our post on NFTs and intellectual property, which will shed more light on this topic.
Strategies for trademark protection in the metaverse
The expansion of the metaverse poses significant risks to the integrity of brands, making it essential to implement effective protection strategies such as the following:
- Extension of trademark coverage to virtual goods. Indeed, companies must ensure that their trademarks are registered not only for their physical products but also for their digital equivalents within the metaverse. This will allow them to safeguard their identity in the virtual realm and prevent unauthorized use by third parties.
- Registration of trademarks in multiple classes. Certainly, an effective approach is to register trademarks in various classes that include both physical and virtual goods. In this way, broader protection is guaranteed, and the risk of legal disputes with third parties attempting to exploit the trademark in digital environments without authorization is reduced.
- Clear definition of terms of service. As we mentioned, metaverse developers must establish detailed terms of use that include clauses on intellectual property. These conditions must specify restrictions on the use of trademarks within the platform and define the legal actions available in case of infringement.
- Constant monitoring of intellectual property. To prevent the misappropriation of their trademarks, companies must invest in monitoring systems that allow them to track the use of their corporate identity in the metaverse. Specialized agencies – such as ISERN Patentes y Marcas – provide this service to their clients. Detecting infringements in real time will allow preventive measures to be taken and prevent major problems.
- Proactive enforcement of trademark rights. Undoubtedly, companies must act quickly to enforce their trademark rights in case of infringement. This may involve sending cease and desist notices or filing legal actions within the metaverse to ensure the protection of their corporate identity.
Do you have questions about how to protect your trademark in the metaverse? Consult us!
At ISERN Patentes y Marcas, we offer specialized advice to safeguard your company’s rights in the digital environment, defining clear conditions for their use. Our team of experts in intellectual property in the metaverse, along with a track record of over 100 years in the registration and protection of trademarks, patents, and creations, guarantees a reliable service in and outside of Spain.
Ensure solid trademark protection in the metaverse for your organization! Contact us and visit us at any of our 12 offices in the main cities of the country!