Following the arrival of the internet and social media, the number of ways to profit from digital content ownership has increased dramatically. The music and film industries, for example, encountered copyright infringement difficulties and overall disruption in the early days of the internet. These were some of the first sectors to be obliged to adapt to the internet in order to protect their product ownership. Music and films were swiftly stolen and circulated in a matter of seconds once this content became widely available on the internet, causing music companies and film production studios to lose cash and potential clients.
These sectors gradually adapted to these developments by creating accessible media libraries and eventually adopting what we now know as streaming platforms, after years of developing marketing techniques geared at luring consumers to acquire their products and services. With the help of blockchain technology, it is clear that these difficulties are gradually disappearing. The way intellectual property rights (“IPR”) are recorded and handled, for example, has been changed by Distributed Ledger Technology (“DLT”). DLT is the best technology for ensuring that the owner of a product can control the contractual rights that are transferred and related to the sale of that product due to its transparency, automation, and possibilities of smart contracts.
Existing legal and regulatory frameworks were not created with digital assets, such as non-fungible tokens (“NFTs”), in mind. Existing legislation, however, still applies in many circumstances, based on the token’s features and the acts undertaken with respect to the token. As a general rule, the rights that come with a digital asset are determined by the digital asset’s seller, which means that NFTs have metadata that identifies the related item to which they are linked. NFT issuers own the IPR linked with the underlying asset and, as a result, decide what rights to provide the token buyer. (Of course, this requires that the seller is the rightful owner of the underlying asset’s rights, which isn’t always the case.)
In the case of NFTs and in-game avatars found in the metaverse, the original creator will have the exclusive right to edit, distribute, and sell their work to others if they choose to retain the copyright of the underlying work (which is the norm). As a result, the buyer receives a digital token as well as precise rights to use and/or resell that exact copy of the asset. The inherent conditions and license terms attached to the acquisition of the applicable NFT will govern the scope of these usage rights.
While NFTs can be acknowledged as “property,” they are most commonly accepted as transparent proof of legal title to the asset’s digital counterpart. In essence, the bearer of an NFT has a unique numerical code that functions as a token in their wallet, allowing them to transfer the NFT as they like. This factual control, similar to property rights, establishes a basic link to the asset. This, too, will be determined by the terms of sale incorporated in specific smart contracts. (If the issuer is to be paid a percentage of ongoing payment transactions or royalties, for example, smart contracts will reflect this.)
The ownership of a tokenized asset is publicly recorded in a transparent manner thanks to blockchain technology. Simply said, if someone buys a tokenized product, they will be registered as the owner of this one-of-a-kind digital asset, which will be transferred to someone else when the object is sold. The Metaverse is offering an ecosystem where ownership and originality are unquestionable in a society full of identity politics, where the people are keen to follow the trend.
When assessing the application of existing intellectual property laws within a virtual environment, however, not everything is evident. The metaverse raises a lot of difficulties, especially when it comes to identifying the regulatory structure of a platform and the contractual rights associated with its use. When it comes to applying for trademark and patent registrations in the metaverse, businesses will have to tread carefully, as issues about who oversees these registrations and what legal jurisdiction the metaverse falls under may arise.
(Jurisdiction and territoriality are two other significant issues that have gotten a lot of attention from those who are still skeptical of the metaverse’s commercial potential.) While the metaverse strives to be a global jurisdiction in which we are all connected, the fact is that these platforms are frequently owned and managed by a single corporation. In order to ensure the protection of your brand, you may need to arrange IP licensing agreements with each platform provider.)
In order to make use of the metaverse’s immersive features, trademarks and legally protected content will have to act in unconventional ways. These concerns will have to be addressed by trademark registration regulations that are flexible enough to accommodate new products and services. At the same time, the emergence of the metaverse and associated infringement will force brands to devote more resources to analyzing trademark and copyright engagement and detecting potential infringement issues early on.
Overall, the metaverse will pose concerns and raise questions regarding intellectual property rights, as well as their legal protection and ownership. It will, however, give a plethora of chances for enterprises with intellectual property to improve their strategy and become compatible with ecosystems like the virtual world. One company works to stand out from the pack to ensure protection and transparency. Redline Blockchain aims at providing a platform for NFTs that offer some intriguing new properties in which they’re one-of-a-kind, scarce, tradeable, and applicable to a wide range of applications. Where you can do whatever, you want with them, just like you do with tangible products. You may give them to a friend halfway around the world, or sell them on the open market. Where they do have all of the programmability of digital goods, unlike physical things.
As Metaverse and Web3 evolve, new sorts of goods, services, trademarks, and patentable virtual reality-related technologies may emerge.