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INLEX:  ow do you protect your brand in the metaverse



              Many companies are launching onto the metaverse which, for lack of proper regulations, looks
              like a ruthless world...Nastasia Germain-Tournière, intellectual property lawyer at Inlex Monaco,
              gives some key advice on how best to protect a brand from abuse.


                                                   and (2) that the defendant has used the same   arise) in connection with the metaverse and
                                                   or a similar mark in commerce in connection    FTs, intellectual property issues are amongst
                                                   with the sale or advertising of goods or   the largest and most important. Current
                                                   services, without their consent. We must   regulations provide food for thought and
                                                   first remember that trademarks obey the   initial responses; nevertheless, it is certain
                                                   principle of speciality, that is to say that the   that adaptations and additional regulations
                                                   protection conferred by a trademark title is   are to be expected for better legal certainty.
                                                   valid only for the products and services which
                                                   are designated at the time of filing and may   Are NFT-related contracts contracts like
                                                   extend to products and services similar to   any other? In the case of sale of NFTs, what
                                                   these. Thus, trademarks protected for physical   contractual aspects should be considered?
                                                   products (clothing, perfumes etc) do not   This is the typical case for which the classic
                                                   necessarily protect their virtual equivalents,   regulations may apply.  ust as a collector does
                                                   due to their distinct nature. It is, therefore,   not hold copyright on a painting he buys, the
                                                   necessary to protect them specifically.  sale of an  FT associated with a tokenised
                                                                                       work does not imply, by default, the transfer of
                                                   What legal weapons currently exist to protect   the copyright of the artist for the benefit of the
               Nastasia Germain-Tournière,         trademarks in the metaverse?        buyer. It is, therefore, necessary to distinguish
               juriste en propriété intellectuelle / intellectual property lawyer  Many companies are setting out to conquer   between the sale of the  FT (considered as
                                                   the  virtual  world  and  anticipate  the   a certificate of authenticity) and the sale
              It seems that disputes between certain   exploitation of their brand in the metaverse or   of the copyright associated with the work.
              major brands and artists or, in some cases,   in the form of  FTs, by re-branding activities   There is indeed confusion amongst  FT
              unscrupulous people on the Web3 are   with a new wording. In our opinion, it is   collectors insofar as the  FT is associated
              becoming more common?                necessary to anticipate as much as possible   with the idea of rarity and uniqueness so, by
              In registered trademarks we can also cite   projects related to the metaverse in order to   acquiring an  FT, its holder imagines that
              several cases involving major brands, such   protect brands and these kinds of products   they can exploit it as they wish.  owever, this
              as the MetaBirkin case for example, in which   and services as early on as possible. Several   is not the case, since the acquirer of an  FT
               FTs named Baby Birkin and MetaBirkin,   classes of products and services may be   does not automatically hold the copyright
              strongly inspired by the famous  erm s   involved in a project related to the metaverse   associated with the tokenised creation. In
              bag, were created and sold by an artist,   and, in particular: Class 9, relating to non-  the event of a silent contract, the purchaser
              without prior authorisation.  erm s, therefore,   fungible tokens ( FTs); Class 35, relating to   is only deemed to be the holder of the token
              initiated legal proceedings against the creator   online retail services offering downloadable   and not of the rights attached to the work.
              of these  FTs in the  ew  ork Civil Court,   virtual goods; Class 36, relating to the   Thus, he or she is not entitled, for example,
              in particular for infringement of the Birkin   transfer of  FT-authenticated downloadable   to market the work on derivative objects (or
              trademark. According to the artist,  erm s’   digital files; and finally Class 41, relating to   other media) following the purchase of the
              allegations were unfounded since he did not   online entertainment and computer games    FT. In addition, different types of licence
              create or sell fake Birkin bags   rather he had   intended for use in virtual environments.   are used today on the platforms, such as the
              made works of art that depicted imaginary    evertheless, the drafting of the wording of   CC0 licence, the commercial licence or the
              Birkin bags covered in fur. Whilst waiting for   activities must be done on a case-by-case   “no licence”. It therefore seems essential to
              the debate to be decided by the court, we may   basis by a professional, in order best to cover   provide by contract the scope of the transfer
              well wonder how luxury brands can protect   all activities planned by a company, whilst   of copyright associated with tokenised works,
              themselves against this type of situation.  being precise enough to avoid refusals from   according to the buyer’s project: authorisation
                                                   the Intellectual Property Office.   to modify a tokenised work for example, or
              Is the intellectual property of a company in                             even concerning the simple fact of being able
              fact protected by registering a trademark?  Do current Monégasque and international   to exhibit the tokenised work in the metaverse,
              To be successful in a case such as MetaBirkin,   regulations apply to the metaverse or is it   which remains a prerogative of the creator
              the plaintiff must demonstrate that they own   a no man’s land?          in the absence of a specific provision on
              (1) a valid trademark eligible for protection   Of the many legal issues that arise (or will   this point.



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