As the metaverse rapidly evolves into a significant marketplace, intellectual property (IP) law, particularly trade mark protection, face new challenges in safeguarding brands within virtual environments. A recent UK government-commissioned report highlights these emerging issues as businesses seek to establish a presence in the metaverse.

What is the Metaverse?

At its core, the metaverse is a virtual space where users can interact, shop, collaborate, and explore, all from the comfort of their homes. While certain functionalities already exist within gaming platforms, the vision for the metaverse is far more expansive—a digital world where consumers can purchase virtual goods, attend virtual events, and engage in various activities, often through avatars.

In this digital world, consumers are already spending real money on virtual products, often in the form of non-fungible tokens (NFTs), which are unique digital assets. The growing popularity of NFTs, along with virtual goods, is creating substantial economic value within the metaverse. This rise in virtual commerce brings with it many new legal and trade mark considerations.

Brands and the Metaverse

Many industries, particularly gaming, sports, entertainment, fashion, and cosmetics, are exploring new opportunities within the metaverse. For instance, sports leagues are selling NFT trading cards, and music artists are hosting virtual concerts, like the well-known performance by Travis Scott in Fortnite.

Tech giants like Meta, Microsoft, and gaming platforms like Roblox are investing heavily in the metaverse, seeking to claim their share of this burgeoning digital world.

Trade mark Challenges in the Metaverse

Just as in the physical world, businesses must address a range of legal issues in the metaverse, including privacy, competition, free speech, and most notably, intellectual property rights. Brand protection is particularly crucial here.  Companies should focus on securing appropriate trade mark registrations, implementing monitoring strategies, and defining clear terms of use.

For businesses considering offering branded virtual goods, it’s vital to act quickly by filing trade mark applications for digital assets. Descriptions of goods and services and classifications will be key factors in these applications. Early movers like Nike, Converse, and other fashion brands are already filing applications to protect their marks in connection with virtual offerings, providing a framework for future applicants.

Key international trade mark classifications that companies are targeting include:

Countering Bad Actors in the Metaverse

As with any new marketplace, the metaverse has attracted bad faith actors attempting to capitalise on well-known brands. Instances of counterfeit trade marks and fraudulent sales have already been reported. For example, luxury brand Hermès is currently engaged in a legal battle over the unauthorised sale of MetaBirkin NFTs, which imitate their famous Birkin bags.

If your company does not plan to engage in the metaverse, protecting your trade mark from unauthorised use could still be essential. While famous brands like Hermès can argue that meta-use tarnishes their reputation, smaller brands may need to rely on trade mark infringement claims based on the likelihood of confusion.

Policing and Enforcement

Monitoring brand use in the metaverse presents new challenges. With the NFT market growing and fraudulent activity rampant, companies need to stay vigilant to protect their trade marks. Policing the metaverse may require advanced tools for detecting misuse, alongside traditional legal responses such as cease-and-desist letters and litigation.

Does Exhaustion of Rights Apply in the Metaverse?

The principle of trade mark exhaustion, which allows buyers of physical goods to resell or alter them freely, raises new questions when applied to virtual goods. Do trade mark rights extend to virtual products after sale, or do they remain under the control of the brand owner? This issue is especially pertinent in the case of NFTs, where ownership and rights are often unclear. As the metaverse continues to expand, courts will need to address these complexities.

Key Takeaways for Businesses

For companies looking to venture into the metaverse, careful planning around trade mark registrations and enforcement strategies is essential. A comprehensive IP strategy will help safeguard your brand from misuse, ensure consumer trust, and maximise commercial opportunities in this emerging space.


At National Business Register, we specialise in helping businesses protect their intellectual property rights in both the physical and virtual worlds. Whether you’re expanding into the metaverse or simply want to safeguard your brand, we can assist with trade mark registration, monitoring, and enforcement strategies. Contact us today for expert advice and ensure your brand is ready for the digital future on Info@nbrg.co.uk or by calling 0800 069 9090.