By Michael Kondoudis, Metaverse Metaverse Attorney
This is a COMPLETE guide to trademarks and the Metaverse.
Most business owners and entrepreneurs know the importance of trademarks. But how do you legally protect those trademarks in the Metaverse?
This guide has the answers.
So if you want to:
- Understand the basics of the Metaverse
- Why businesses need to prepare for the Metaverse
- How to use the Metaverse for profit
- How to prepare and safeguard your brand for the Metaverse
- Learn about trademarking brands
- Discover how to leverage trademarks in the Metaverse
Then this guide is for you.
Let’s get started.
CONTENTS
PART I: THE BASICS OF THE METAVERSE
In this section, we’ll explore the Metaverse and what makes it so important to the future of business.
What does the word “metaverse” mean?
The term “metaverse” literally means “beyond the universe.”
What is the Metaverse?
At its most basic level, the Metaverse will be a virtual and immersive world that parallels our own. It will be inhabited by digital representations of people, places, and things, and users will be able to experience digital lives that mirror their real lives in many respects. Users will communicate, share, and work with others and interact with elements in the virtual world – just like we do in the physical world.
Features of the Metaverse
The potential of the Metaverse will only be limited by technology – for now. In the future, the only limits will be users’ imaginations. The primary features of the Metaverse ensure this limitless potential.
Some of the features of the Metaverse are:
- Persistence: The Metaverse will always be “on.” It won’t be reset, rebooted, or unplugged. Users will enter and leave it at will, and content will always be available. This constant availability will provide a continuity that will enhance users’ experiences.
- Immersion: Users in the Metaverse will experience a new level of immersive and interactive experiences on par with the real world. As VR and AR technologies improve, so too will users’ sensory experiences. There will be a time when the Metaverse will engage users’ senses as much as in the real world.
- Decentralized: In contrast to today’s social media companies, no single entity or entities will have control over the Metaverse. It will be more like the Internet and less like social media platforms.
- Virtual Marketplaces and Economies: The Metaverse will permit users to participate in virtual marketplaces – including those of ideas, culture, art, and business. These marketplaces will allow users to buy, sell, and share digital assets like NFTs, virtual real estate, event tickets, information, and virtual goods. This is the future importance of digital currencies.
- Amplified social experiences: The Metaverse will empower users to build social links with users and AI entities. Through these links, users will share information, content, and ideas and “co-experience” virtual events.
- Boundless opportunities: Because it will be virtual, the Metaverse will not suffer from the limitations and barriers of the real world. It will be an endless virtual space with extreme accessibility from anywhere at any time.
Why should businesses care about the Metaverse?
Businesses should care about the Metaverse because retail will be one of the largest sectors in it, with social experiences a close second.
Businesses should also care about the Metaverse because it will impact their marketing and branding. For example, information and analytics collected from the Metaverse can be leveraged to increase sales in the real world. Plus, the Metaverse will be a new market for products and services.
The Metaverse will impact marketing because it will be an opportunity (1) to reach customers in an entirely new dimension and (2) to collect consumer information based on how users behave and act in the Metaverse. These new connections and information can then be leveraged to increase sales and brand awareness in both the real world and the virtual world of the Metaverse.
Think about it. The Metaverse will be a world that exists in parallel to our own. It will be inhabited by users living second lives – wholly digital lives – that parallel their real lives. Users will interact with other users, engage in commerce, travel, learn, and consume content – just like in the real world. It will be an untapped market with digital users ready to buy your products and services.
The Metaverse will impact branding. As the Metaverse grows and matures, branding and advertising opportunities will increase. Examples of the opportunities that await in the multiverse include:
- virtual retail stores (signage and displays)
- virtual popups (special events to engage and network)
- virtual training/classes (branded content and sponsorships)
- metaverse events (concerts and performances)
- digital products (NFTs and virtual clothing for user avatars)
- product placements (branded products in games and virtual billboards).
Basically, anywhere we can use branding in the real world will have a digital partner in the Metaverse.
Who is trademarking brands for the Metaverse?
It seems that everyone is getting ready for the Metaverse. The number of brands applying to trademark their brands for Metaverse grows every month. Here are just a few of the first:
Footwear
• Nike
• Converse
Entertainment Brands
• Ticketmaster
• Elvis Presley Enterprises
Sports
• Jerry Rice
• Hendrick Motorsports
Toy Brands
• Hot Wheels
• Bazooka
Retail
• Walmart
• Saks
Publishing
• Sports Illustrated
• Vanity Fair
Do you need help with your trademark?
When can we expect to see the Metaverse?
Authorities estimate that it may not be until 2030 for Metaverse to really take off. Still, aspects of the Metaverse currently exist. Ultra-fast broadband speeds, virtual reality headsets, and persistent always-on online worlds are already up and running, even though they may not be accessible to all. Plus, forward-thinking companies are already preparing their brands for the Metaverse.
PART II: HOW BUSINESSES CAN USE THE METAVERSE
In this section, we’ll explore some of the ways businesses can use the Metaverse to increase revenue and expand brands.
The Metaverse will provide increasingly immersive experiences as it matures and evolves. But, in some ways, the Metaverse is already here, and forward-thinking companies are already offering more and more Metaverse-like experiences.
Examples of Metaverse-like experiences
The National Football League (NFL) has opened a virtual store in the online video gaming platform Roblox. The NFL’s virtual store sells virtual team jerseys and helmets to Roblox players.
• Nike has also opened a new world on the Roblox gaming platform. This digital realm, named Nikeland, offers Roblox users official digital Nike-branded clothing for their avatars, along with mini-games and other “co-experience” events.
• Gucci has turned to the Roblox gaming platform to host a virt100th-anniversary celebration event.
• Burberry has ventured into the Metaverse by collaborating with the video game Honor of Kings to place digital Burberry designs into the gameplay.
Top 7 ways a business can use the Metaverse
The opportunities that will be available in the Metaverse are seemingly infinite, and many haven’t even been conceived of – yet. Still, the Metaverse offers important opportunities for today and in the near future.
These are the top seven ways businesses can leverage the Metaverse:
1. Selling virtual goods – It is estimated that more than $100 billion was spent on virtual products in 2021. More importantly, this $100 billion reflects just a sample of the growing opportunity for businesses to generate revenue in the Metaverse.
2. Virtual Showrooms or vStores – vStores allow customers to take tours of showrooms and interact with all kinds of objects, including products. This ability to visualize and interact with products, such as furniture, cars, fashion, and NFT assets, can happen entirely in the Metaverse – without the burden of a brick-and-mortar footprint.
3. Product Sales Training – The Metaverse will offer “co-experience” events, including training and education seminars. Repetitive training, such as product demos and sales techniques, can be held in the Metaverse at almost no cost.
4. Customizers + Configurators – Because the Metaverse will be immersive, businesses will be able to show their customers “virtual demos” of customized products, such as furniture, automobiles, homes, and commercial spaces.
5. Reducing Returns and Higher Sustainability – With virtual tours and reveals, customers can better visualize products before buying them, which reduces returns and exchanges. Fewer returns lowers overhead and is good for the environment.
6. Lowered Research and Development Costs– Virtual prototypes in the Metaverse will reduce the need for physical prototypes and samples.
7. Advertising – The Metaverse will offer endless opportunities for brand placement in games, signage in virtual stores, and digital products.
PART III: HOW TO PROTECT YOUR BRAND IN THE METAVERSE
In this section, we’ll go over the basics of the trademarking process and how to trademark NFTs
How do you protect a brand in the Metaverse?
The best way to protect a brand in the Metaverse is to trademark the name, logo, and any phrase or slogan that you use to promote your virtual products and services. Trademarks protect brands, including brands in the Metaverse. Trademarking your brand’s name, logo, and phrase for virtual goods and services is the best way to protect it.
Can you legally protect your brand in the Metaverse?
Yes, you can legally protect the name and logo of your virtual products and services with a trademark. Trademarking your virtual product name is official confirmation that you legally own it.
How do you legally protect your brand in the Metaverse?
The most effective way to protect the name of your virtual product or service is to trademark it. Trademarking your virtual product name will protect it by giving you exclusive rights to use it and preventing others from using the same or similar name in the Metaverse.
Trademarks in the Metaverse = Protection for virtual goods and services
What exactly is a trademark?
A trademark is a distinctive word, symbol, or phrase that differentiates the source of goods (or services) from one enterprise from those of others. Trademarks represent brands and protect brands, including brands in the Metaverse. Buyers use trademarks to pick among brands of products and services.
What can you trademark for the Metaverse?
The most common Metaverse trademarks are words (names), phrases, logos, and designs.
Should you apply for a Metaverse trademark?
Yes, if you have a trademark, you should file for a Metaverse trademark. Filing for your trademark in the Metaverse right now is the best way to prevent anyone else from trademarking it for their Metaverse business. Plus, getting a Metaverse trademark ensures that your mark is protected in the virtual world. So, you should file for Metaverse trademarks.
How do trademarks protect brands in the Metaverse?
Trademarks protect a company’s identity and the reputation that it builds in its brand, including in the Metaverse. Also, trademarking your brand is a powerful way to identify and distinguish it from the competition, which:
- makes it easier and less expensive for customers to find your products
- reduces the cost of marketing
- builds your brand identity
Brand identity and distinction will be critical in the immersive world of the Metaverse.
Top three reasons to trademark a brand for the Metaverse
Trademarking your brand for the Metaverse will prevent anyone else from trademarking the brand and taking it from you.
1. It will prevent anyone else from registering the same or similar name for their brand in the Metaverse
2. It will increase customers confidence in your brand, which increases trust and value
3. It is a powerful tool to stop unauthorized use of your brand by copycats in the Metaverse
Where do you get a Metaverse trademark?
You get a Metaverse trademark from the U.S. Patent and Trademark Office (USPTO). To get a trademark for the Metaverse, you need to apply to the USPTO and then navigate an examination process. Metaverse trademarks are granted by the USPTO.
How to get trademark protection in the Metaverse?
Filing for a Metaverse trademark at the U.S. Patent and Trademark Office (USPTO) has four main steps:
1. Clearing the trademark through a professional trademark search,
2. Preparing and applying a strategically crafted trademark application,
3. Navigating the application examination process at the United States Patent and Trademark Office (USPTO), and
4. Properly using your trademark on your digital products and services.
When should you trademark your brand for the Metaverse?
Most authorities agree that in most situations, it is best to file new trademark applications early – even before a business begins selling or marketing in the Metaverse.
Firstly, the trademarking process can take up to 12 months in most cases. So, starting as early as possible will reduce unprotected sales in the Metaverse.
Secondly, filing early reduces the chance that another business has applied to trademark your brand for the Metaverse. Most businesses don’t know that every day of delay is a risk that someone else might apply to register a trademark similar to theirs. If that happens, the USPTO may refuse to register your Metaverse trademarks. Thousands of new applications are filed every day, so waiting for as little as a few weeks can become a risk.
If you have a trademark, you should file for a Metaverse trademark as soon as possible. Filing for your trademark in the Metaverse right now is the easiest way to avoid a costly legal fight over ownership of your trademark in the Metaverse. So, you should file for a Metaverse trademark right now.
What are some products to include in a trademark application for the Metaverse?
• virtual goods
• goods for use in online environments, virtual online environments, and extended reality virtual environments
• downloadable software for users to search, browse, view, and purchase virtual goods,
• retail store services featuring virtual goods
• entertainment services, namely, providing online, non-downloadable virtual goods
• virtual reality software for interactive entertainment and virtual reality gaming
• software for the creation, production, and modification of digital designs and characters, avatars, digital overlays, and skins
Do you need help with your trademark?
How can you check if a brand is trademarked for the Metaverse?
The best way to check whether a brand is trademarked for the Metaverse is to use the USPTO’s trademark registration database via the Trademark Electronic Search System (TESS).
In the BASIC WORD MARK SEARCH function, you can type a brand name and see the products and services for which it has been trademarked. Brands trademarked for products and services such as virtual goods, goods for use in online environments, retail store services featuring virtual goods, and software related to the sale of virtual goods or modifying digital goods.
5 Steps to Protect Your Brand in the Metaverse
1. Register your trademarks: Brand owners are strongly encouraged to register their trademark with the USPTO and foreign equivalents. In the United States, doing so creates a rebuttable presumption that the owner owns the exclusive right to use its trademark in connection with its goods or services and puts the owner in a much better position to enforce against any unauthorized use of its mark in either the virtual world or the real world.
2. Consider subscribing to a trademark watch service: A trademark owner can’t monitor and track every infringing use in the Metaverse. Trademark watch services allow the trademark owner to monitor relevant markets and Internet content for possible infringing activity. Consider designating outside counsel to review these reports as they come in. By working with a watch service, owners can be notified of infringing activity sooner rather than later and can take swift action as these issues arise.
3. Immediately notify platforms and infringers of infringing activity: When infringing activity is detected in the Metaverse, brand owners should report this infringement to the platform. Many of these entities do not want to be liable for any contributory infringement, so they have mechanisms in place to remove infringing content once they become aware of it.
4. Establish a metaverse presence: Finally, brand owners should consider establishing a metaverse presence of their own. Aside from the benefits that come with leveraging the Metaverse as an alternate means of reaching consumers and building brand awareness via a thriving and growing market, it also provides an opportunity to monitor activity, and it may even help thwart trademark infringement by bad-faith actors.
5. Use your trademarks correctly and with the correct trademark symbol: In the Metaverse, users will encounter your brand digitally, much as they do now on a website. Using a trademark symbol conditions customers to recognize your brand names and logos and to start associating them with your business. Read more about trademark symbols here.
PART IV: HOW TO PREPARE FOR THE METAVERSE
In this section, we’ll discuss a strategy that any business can follow to prepare for the Metaverse.
The Metaverse is coming, and it will offer tremendous business opportunities in the near future. The key is to prepare in advance so that you don’t lose your brand in the Metaverse and execute your marketing strategies effectively.
How can you prepare for the Metaverse?
Businesses can prepare for the Metaverse in many of the same ways that they prepare to sell their products and services in a new “real world” market. The Metaverse will be a new virtual market for your products and services. And, like any other new market, businesses need to consider how they present their brand and target their ideal customers.
4 ways a business can prepare for the Metaverse
If your company is developing a digital product or service, or one that can be sold or advertised in the Metaverse, then you need to prepare for the Metaverse. Here are four ways t get ready:
1. Identifying a target customer base for your product
2. Develop a strategy to promote and advertise your brand and products in the multiverse
3. Build a presence in the multiverse by opening a virtual retail shop
4. Ensure that your trademarks are registered for digital and virtual reality products. This is the key to protecting a brand in the Metaverse
TAKE THE NEXT STEP
Take the next step toward LEGALLY owning your brand for the Metaverse!
We have a simple, 5 step process we use to help our clients secure their trademarks. If you’re interested in protecting your trademarks for use in the Metaverse, we invite you to book a FREE brand protection strategy session with us here.
For more than twenty years, Michael Kondoudis has been the go-to trademarking expert for businesses of all shapes and sizes. Michael is a USPTO-licensed trademark and patent attorney, educator, speaker, and author of the Amazon best-seller: Going From Business Owner to Brand Owner. He is also an authority trusted by national news media on major trademark stories.
Fun Facts: Michael is a member of the Bar of the U.S. Supreme Court and an actual rocket scientist (B.S. Astronomy and Astrophysics, Indiana University 1994).