Metaverse , NFTs - a new threat to brands ?
By Sonica Wilken and Onthatile Leshilo , associates at KISCH IP
The “ Metaverse ” and nonfungible tokens ( NFTs ) are buzzwords often heard when one listens to the radio or reads newspapers , but “ what do they mean ?”
The Metaverse is a platform of online 3D or virtually integrated environments that provide users with access to a virtual reality with virtual experiences . Investopedia defines NFTs as “ cryptographic assets on a blockchain with unique identification codes and metadata that distinguishes them from each other ”. However , NFTs must not be confused with cryptocurrency and although they use the same underlying technology ( i . e ., blockchain ), they are better described as “ digital collectors ’ items ”.
The Metaverse also creates a platform for e-commerce transactions . This virtual reality creates a novel experience for the consumer and presents an extremely profitable income stream for online shopping businesses . It is also believed that the Metaverse could , one day , support its own digital economy where its users will be able create virtual assets ( goods ) to buy and sell online .
With the creation of this new virtual word , it has become important for brand owners to understand how to optimise their trademark protection on this platform as it has created a unique shoppingcommerce experience . That said , with this “ new world ” comes increased risk of misuse of intellectual assets and in turn the need for broader brand and trademark protection to shield against the misappropriation of protected brands .
Although one could argue that our existing trademark law should be sufficient to enforce trade mark rights in the Metaverse , trade mark applications for NFTs and virtual marks increased by more
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