Dear Expert: How to Troubleshoot Legal Issues That Relate to the Metaverse

Hello Not VersedLet me start by putting you at ease The Metaverse may be today39s hot topic but aside from generic discussions most people do not fully understand the concept or the implications of becoming involved from a legal standpointSimply put the Metaverse is the concept of interconnected virtual worlds that users can access through a variety of platforms To do so they utilize avatars virtual representations of the user Within the Metaverse users can interact and purchase digital assets and virtual services using digital currencies and nonfungible tokens NFTsExisting virtual platforms do not yet function on an interconnected level but that39s expected to change as the Metaverse evolves Therefore a company would be best served by planning staged involvement with both existing virtual platforms and the presumed eventuality of interconnected worldsCompanies can design their own Metaverse platform participate in existing platforms or move forward with some combination of the two Use cases range from virtual meeting spaces which allow for global collaboration to differentiated customer experiences including virtual branding opportunities customer interactions performance spaces and product sales A wealth of investment opportunities in digital assets also exists These range from virtual real estate to tokenized artFrom a legal perspective venturing into the Metaverse is complicated It can raise a host of concerns that relate to data protection privacy cybersecurity antitrust intellectual property protections real estate tax and financial regulationsCompanies seeking to establish their own virtual space within the Metaverse should develop their platform in lockstep with legal experts Here are some considerationsAd Partner Integrations Product placements ad sales or branded entertainment may require a company to enter licensing and trademark agreements prior to launch Tightly crafted nondisclosure agreements are needed to protect confidential and proprietary information and avoid unintended prelaunch leaksPlatform Rules Users should receive and agree to detailed rules or community guidelines that make them aware of prohibited interactions The restrictions should include barring users from impersonating others using avatars and infringing copyrights and trademarks owned by third parties In addition to outlining banned behaviors the rules should also describe the consequences of misuse of the platform including termination of use and legal recourse optionsIntellectual Property Whether or not a business decides to participate in the Metaverse it is important to take affirmative steps to protect against IP infringement by third parties acting within it Companies should determine whether their existing trademarks adequately protect their brand in the Metaverse and whether new trademarks may be needed Trademark and copyright infringement should be monitored across Metaverse platforms Companies may also want to consider developing their own NFTs to protect against other parties tokenizing their works services or productsPrivacy Virtual platforms will by their nature collect a wide range of information from their users based on their activities However platform owners will not be the only entities collecting this information Businesses participating in the Metaverse through service offerings or property purchases may also collect personal information from users Each of these entities will need to develop privacy policies that reflect their individual practices And they should be mindful of the range of privacy laws that could apply to a global base of usersGoverning Law Because the Metaverse is accessible from anywhere businesses must think about what laws apply to Metaverse users based on their geographic location the countries or US states where they reside Platform owners must also consider how regulated activities on their site such as gambling or purchases of real estate or products may be impacted by local state federal and international law For example which jurisdiction is entitled to tax a digital transaction in the Metaverse The use of avatars complicates questions related to geographic location A Metaverse platform may not be able to identify the location of a user hiding behind an avatarUnderstanding the concept of the Metaverse is only the first step in evaluating whether your company decides to venture into the commercial social work and gaming spaces of the future Developing a flexible multistep compliancedriven plan will provide a foundation for achieving a foothold in this stillevolving area of businessThis article was written by Rebecca Jacobs Goldman who is a Member of the law firm Lerman Senter PLLC She can be reached at rgoldmanlermansentercomClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Dear Expert: How to Troubleshoot Legal Issues That Relate to the Metaverse

Publish date

Channel

FEMA and the Ad Council Encourage AANHPI Communities to Enhance Disaster Preparedness in New PSAs - Ad Council InSites

More Videos:

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Dear Expert: How to Troubleshoot Legal Issues That Relate to the Metaverse

Enjoying This Commentary? There's More to Love

TAGS:

FEMA and the Ad Council Encourage AANHPI Communities to Enhance Disaster Preparedness in New PSAs - Ad Council InSites

Cookies