Metaverse
In the metaverse, the offline and online worlds become one: thanks to a combination of virtual reality and virtual assets, a new, cross-platform iteration of the internet towards the Web3 will connect all aspects of society. In the metaverse, not only can consumers communicate, consume, invest, play or participate in digital events, but industry can also use it to digitalise its business processes, build a corporate presence and employ people.
Metaverse meets business – innovative legal advice in greater demand than ever
It may sound like a vision of the future, but the metaverse has long featured on many companies' agendas. Transferring business processes and corporate structures to the digital world entails many technical and legal questions. The first step is to clarify which jurisdiction applies in the metaverse in the first place. Finally, the Web3 combines a multitude of aspects that companies who want a presence in the metaverse in order to reach consumers and other companies through it must evaluate for themselves, for example:
Data protection, trade marks and copyrights in the metaverse
- What competition law and data protection requirements apply if companies wish to be active in the metaverse? What pitfalls does the GDPR hold in store?
- What about copyrights and trade marks? How can companies effectively protect their intellectual property and trade secrets in the metaverse?
- What innovative advertising strategies are allowed in the metaverse? What data from the metaverse can be used for personalised advertising?
- Do the legal requirements for online shops and contracting in the metaverse differ from those of the Web 2.0?
- What claims can smaller competitors bring against the big platform operators?
Founding and trading in the metaverse
- What partners do companies rely on to expand their presence in the metaverse and how do I hedge against one of these partners failing?
- What tax treatment applies to the sale of goods and services in the Metaverse?
- What do I need to consider when setting up Decentralised Autonomous Organisations (DAOs)?
- Is Decentralised Finance (DeFi) allowed?
- What special features of labour and liability law apply to the deployment of employees in the metaverse? Are companies allowed to employ staff in the metaverse and what social security contributions are payable?
- What needs to be considered when using artificial intelligence and digital twins? What applies when contracts are mapped and automated on the blockchain by means of "smart contracts"?
Other rules and regulations in the metaverse
- Are my business activities regulated in the metaverse? My company works with cryptocurrencies or other blockchain-based tokens – does it need a German Federal Financial Supervisory Authority (BaFin) licence?
- Are there any restrictions on the construction of virtual buildings on digital real property and might I really have to demolish a building again because it violates German neighbourhood law?
- How can companies or private individuals protect themselves from the actions of third parties? What protection is there under criminal law?
- What are the requirements for providing and trading virtual assets such as Non-Fungible Tokens (NFTs)?
The list of possible issues is practically endless. It is important to keep track of developments and, in light of the countless innovations, not to lose sight of the market standard. This requires many years' experience, knowledge of the industry and a thorough understanding of the complexities involved in digital transformation.
Working in international and interdisciplinary teams, our lawyers can advise you on all issues relating to digital transformation and will support you in getting your company ready for the metaverse. You benefit from our lawyers' many years of experience, who have the technical expertise to put your digital business processes on a legally secure footing when it comes to digital transformation (including Web3). Our crypto team has the necessary market knowledge, knows the relevant market players and understands the specific jargon involved.
Definition of the metaverse – what is it exactly?
The metaverse isn’t the product of a single company, but rather a concept, a vision of the Internet of the future based on the contribution and involvement of a large number of different parties. The metaverse comprises multiple virtual worlds.
The lack of an identifiable originator and the fact that it cannot be traced back to a single company means there is no generally accepted definition of the metaverse, which in turn leads to diversity. While some see the metaverse as being about virtual worlds where we will eventually live our daily lives (associated technologies and trends: virtual reality, augmented reality, mixed reality, spatial computing), others expect that we will soon be able to use the metaverse to buy, use, hire out or sell virtual items or plots of land, or hand them down to subsequent generations (associated technologies and trends: blockchain, Web3, non-fungible tokens). Others in turn see the metaverse less as a frontend development than as the evolution of technologies used in the backend. For example, they expect an Internet which, as a semantic web, can not only reproduce the content of websites, but also understand it. This would enable the metaverse to deliver individualised results to users, or even generate content itself (associated technologies and trends: Web 3.0, semantic web, generative artificial intelligence (AI)). Another scenario would be an Internet in which people and machines are connected and can interact (associated technologies and trends: smart wearables, smart home, automated driving, automated drones, Industry 4.0, Internet of Things).
AI vs the metaverse: Is the hype around the metaverse wearing off?
Reports about AI trends and investments have dominated the headlines recently, and AI-related start-ups are currently able to raise capital faster than firms in the metaverse sector. However, this merely reflects the misconception that AI and the metaverse are mutually exclusive.
The movers and shakers in AI and the metaverse actually come from the same ecosystem. So there is good reason to assume that AI is a major driver of the metaverse and will speed up its development, thus unleashing the full potential of the metaverse. For example, AI could provide support for designing new digital worlds and help to make completely new and different experiences possible in the virtual space (e.g. at events). AI is therefore not the nail in the coffin for the metaverse, but rather a catalyst for its development.
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