Overview of metaverse
Protecting and enforcing brand rights in metaverse
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This article is part of a series exploring the evolving IP landscape in the Internet, digital media and e-commerce industries.(1)
Facebook's recent rebranding to Meta has significantly increased interest in the "metaverse". Although the concept of the metaverse is still evolving, it is generally understood to be a persistent virtual environment where users can interact with each other, and increasingly with brands.
This new environment will pose both challenges and opportunities for brand owners seeking to extend their engagement with consumers to the virtual world. For instance, brand owners seeking to promote their trademarks in the metaverse may be able to do so through a variety of means, including virtual billboards, hosting virtual sponsored events and even in virtual "malls" where consumers may explore a brand owner's virtual offerings.
Indeed, some brand owners are already actively engaging with consumers in the metaverse, through various decentralised game applications and by selling exclusive virtual clothing lines using non-fungible token (NFT) technology (for further details of IP issues relating to NFTs, see "NFTs: art meets crypto – traditional copyright issues in tokenised world").
Protecting and enforcing brand rights in metaverse
Well-executed marketing efforts in the metaverse may increase brand loyalty (particularly among younger, tech-savvy consumers) and increase sales of both digital and real-world goods. However, as more and more brand owners start offering branded digital goods and services in the metaverse, trademark infringement and counterfeits will inevitably follow. Since the exact form of infringement may be difficult to predict, it will be important for brand owners to secure enforceable trademark protection that extends to the metaverse.
Brand owners who fail to secure their trademark rights for virtual goods and services may find it difficult to combat infringement and effectively enforce their rights in the metaverse. Some forward-looking brand owners have already taken steps by applying to register their trademarks for goods and services relating to the metaverse, including downloadable virtual goods for use in online virtual worlds, retail stores featuring virtual goods and providing digital collectible services.
Some recent examples of brand protection in the metaverse include the following:
- Nike recently made headlines by filing trademark applications with the US Patent and Trademark Office for such goods and services for many of its iconic brands like NIKE, JUST DO IT and its AIR JORDAN logo.
- Converse has also filed multiple applications to obtain trademark protection for virtual goods and services for its famous marks, such as the well-known ALL STAR CHUCK TAYLOR logo.
- Abercrombie & Fitch has filed trademark applications for its bird and moose silhouette designs covering virtual goods.
The metaverse provides challenges and opportunities for brand owners seeking to engage with a new consumer base and increase brand loyalty using digital and virtual goods and services. As more and more brand owners begin providing goods and services in the metaverse, it will become increasingly important to secure trademark protection for virtual goods and services to combat inevitable infringement.
For further information on this topic please contact Akiv Jhirad or Mark Biernacki at Smart & Biggar by telephone (+1 613 232 2486) or email ([email protected] or [email protected]). The Smart & Biggar website can be accessed at www.smartbiggar.ca.
Endnotes
(1) For the first article in the series, see "NFTs: art meets crypto – traditional copyright issues in tokenised world".