Intellectual property in the metaverse
The creation of a parallel universe requires all fields of law to be adapted to that new space. Intellectual property is no exception. The protection and enforcement of IP rights in the metaverse must be considered carefully – by organizations and individuals alike – from the creation of avatars to the organization of large-scale business activities.
Let’s enter the metaverse and look at the IP issues that can arise:
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Intellectual property in the metaverse
The creation of a parallel universe requires all fields of law to be adapted to that new space. Intellectual property is no exception. The protection and enforcement of IP rights in the metaverse must be considered carefully – by organizations and individuals alike – from the creation of avatars to the organization of large-scale business activities.
Let’s enter the metaverse and look at the IP issues that can arise:
Key legal risks / issues
Protection and enforcement of IP rights
- risk of unauthorized use of third-party IP
- IP infringement risks
- use of IP in scenarios not compatible with brand image
- uncertainty around the applicability of the Nice classification to virtual goods
Creation and sharing of content
- legal protection and ownership of virtual creations
- possibility to use IP-protected works in the metaverse under existing agreements
- allowing third parties to use IP-protected rights in the metaverse
NFTs
- issue of identifying the rules applicable to NFT contract chains and IP ownership principles
- ability or authorization to create an NFT over a copyrighted work
- amending existing agreements and negotiating future agreements to include NFT challenges
Questions to consider
Employees/Independent Contractors
- do the creations developed by employees and independent contractors qualify for legal protection and ownership in the metaverse?
- do agreements include the necessary rights (assignment/license) to use intellectual property including in or to NFTs, avatars, interfaces and other design elements generated by employees or contractors in the metaverse?
- do agreements cover the creation of NFTs of a copyrighted work or trademark?
- would creators have to be compensated/paid royalties for the sale of assets/NFTs based on their work in the metaverse?
Clients/Users
- are organizations monitoring the use of their IP in the Metaverse?
- are organizations extending their trademark applications to virtual goods?
- have remediation strategies been implemented to eliminate/reduce IP-related risks in the metaverse (for example, brand dilution)?
- are organizations prepared for IP infringement lawsuits in the metaverse over virtual and tangible goods?
Suppliers
- do existing IT suppliers provide services tailored for the Metaverse?
- do agreements include the necessary rights (assignment/license) to use intellectual property generated by suppliers in the metaverse?
Distributors
- do distribution agreements cover reselling through the metaverse?
- do agreements include exclusivity provisions and what could be their impact in the context of reselling through the metaverse?
- has a metaverse policy been drawn up covering requirements in terms of products and services and trademarks are to be used and displayed by distributors in the metaverse?
Contact
Emmanuel Ronco
Gaëtan Cordier
Click on the topics of interest available below to explore the legal issues arising in the metaverse. We will be releasing further reading on a variety of topics periodically.
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