Metaverse law refers to legal systems, policies and theories concerning metaverse technologies involving virtual reality, augmented reality, mixed reality, and hyperreality.[1]

Metaverse law in practice

Metaverse law is in the early stages of development in legal scholarship and legal practice compared to other established legal fields.[2] And not all legal practitioners and scholars have recognized metaverse law as a specialized area of study, given the early stage of metaverse technology adoption in the public.[3] Instead, some legal practitioners and scholars anticipating the metaverse technology have examined the metaverse by looking at the relationship between traditional legal frameworks and the metaverse.[4] [5] So for many individuals, metaverse law is spoken in the context of existing laws involving and applying to the metaverse, rather than treating metaverse law as a legal field.[6] [7]

Emerging metaverse law theories

Metaverse law theory

While some people view the metaverse law under the umbrella of established legal fields, others have taken a broader position. For instance, one legal think tank has proposed the theory that metaverse law is a new area of study that must be recognized as a legal field in entirety,[8] rejecting the view that metaverse law is a sub-discipline of an existing legal discipline. In similar vein, some legal scholars have claimed that the metaverse demands an entirely new legal infrastructure such as independent virtual jurisdiction, legal order, and self-regulating government bodies and constitutions.[9]

However, some say that the metaverse law theory falls short in practice. Regulators have stated that they need to have a better understanding of the metaverse to create metaverse-specific laws,[10] [11] and the metaverse market has been struggling to achieve stability.[12] Other critics point out that metaverse is not any more unique than a game.[13] For example, some technology leaders, like Microsoft CEO Satya Nadella, do not distinguish metaverse from a game.[14] [15] Distinguishing the metaverse from a game was an important distinction in Epic Games v. Apple, where the plaintiff was unsuccessful in the claim that its software could avoid defendant Apple Inc.'s commission charges on in-app game purchases because plaintiff's software is classified as a metaverse, as opposed to a game. Additionally, proponents of the metaverse law theory also agree that establishing the metaverse law as a legal field necessarily involves studying the intersection between existing legal theories and the metaverse.[1]

Metalaw

In one opinion article, McCollum suggested that metalaw will emerge as the legal system that governs the metaverse. Citing Haley's 1956 article, Space Law and Metalaw – A Synoptic View, McCollum claimed that metaverse will adopt the terminology, "metalaw," to represent laws associated with metaverse because metalaw describes conditions and rules by which "sapient beings of a different kind" do not follow, unlike the way human beings do on Earth, alluding that extraterrestrial beings may be anything other than humans (i.e., robots).[16]

On the other hand, Haley had coined the term, "metalaw," in the context of space law and its relationship to possible governing laws with extraterrestrial life in galactic space (a.k.a. aliens).[17] Haley's intent of defining metalaw for interactions with extraterrestrial beings in space was reaffirmed more than once in a 1957 paper, Space Law and Metalaw - Jurisdiction Defined,[18] and in 1956 Congress of the International Astronautical Federation.[19] Additionally, Haley's metalaw theory has been cited by early and modern legal scholars strictly in space law context,[20] [21] including his critics.[22] Some modern scholars have argued that metalaw could be aptly used to create rules governing artificial intelligence; however, this suggestive concept narrowly applies to the relationship between humans and robotic intelligence, which is not specific to the metaverse.[23]

Crime

The word, "metaverse," first appeared in criminal law studies in 2008, Fantasy Crime: The Role of Criminal Law in Virtual Worlds, by Susan W. Brenner.[24] Because metaverse existed in limited forms at the time of publication in 2008, Brenner anchored her analysis from Neal Stephenson's 1992 novel: Snow Crash, which is credited to be the birth of the metaverse concept by many people.[25] In her legal analysis, Brenner addressed harms that can theoretically transfer from virtual spaces to the physical world such as virtual rape and pedophilia. Even though Brenner published her study more than a decade ago in 2008, the types of harm addressed by her paper surfaced as a common issue topic in the 2020s, where people frequently report unwanted sexual contacts and threats by other metaverse users.[26] [27] At the same time, Brenner examined the metaverse as a subset of virtual crimes under criminal law, as opposed to treating the metaverse law as a legal field or as a subset of cyberlaw.[24]

Sub-discipline perspective

Some legal scholars have approached the metaverse law subject through a subclass perspective. Although these scholars have adopted the "metaverse law" terminology to represent a legal discipline, they view metaverse law as a sub-discipline of cyberlaw.[28]

Existing laws regulating the metaverse sector

There is still a lot of development needed in the Metaverse to understand the full scope of law that will be applicable in the field. Some of the laws that are currently being practiced in this field are listed below:

Privacy Law

Because companies often collect user information and share data without user knowledge as common practice,[29] privacy experts raise concerns that immersive metaverse experience opens bigger doors for privacy abuse and surveillance by companies.[30] So perhaps unsurprisingly, privacy has been a frequently examined topic in metaverse law and legal experts,[31] and proponents of privacy governance argue that self-governing metaverse communities are insufficient to safeguard privacy protection of users.[32] In a 2007 paper, Privacy in the Metaverse, Leenes distinguished metaverse from a game, arguing that metaverse is a social microcosmos whereby ordinary people develop complex social behaviors and psychological effects unique to the metaverse space.[32] Unlike the legal practitioners who have viewed metaverse laws as a subset of existing legal frameworks, Leenes left open for readers to interpret possible privacy implications in the metaverse space by discussing government surveillance, metaverse marriage, borderless communication in common spaces, and how metaverse developers like Second Life do not sufficiently address privacy concerns.

The purpose of copyright law is to protect the original work of creators, artists, and writers. When discussing the Metaverse, the statute includes user-generated digital content such as avatars, virtual real estate, and artwork. Platforms such as The Sandbox enable users to construct, develop, and own 'LANDS' virtual regions. People spend tens of thousands of dollars to acquire a piece of Metaverse real estate. With the popularity of digital assets, copyright law assumes greater significance in the Metaverse.[33]

Intellectual Property Laws

The IP law protects the creators' rights to their inventions, trademarks, and other works. With the rise in popularity of Non-Fungible Tokens, an unavoidable component of the Metaverse space, intellectual property law has become crucial for effective governance. Soon, technology companies will compete to create more sophisticated AR and VR tools, such as high-tech eyewear, headsets, etc., which will open up new industry opportunities for Intellectual Property Rights, such as new software and device patents.[34]

Tort Law

Tort law governs civil wrongs, including both property and personal damages. In Metaverse, the law regulates any harmful activity perpetrated by users against other participants. This can include psychological distress, physical assaults, and property damage. For instance, if one person physically injures another within the Metaverse ecosystem, the injured party can file a lawsuit against the perpetrator. The law will then require the accused to pay for the injuries, medical expenses, and other damages resulting from the act.[35]

There are other laws like defamation & overall regulation scenario of Blockchain & NFT, which depend on the type of transactions & activities done on a Metaverse platform. With time new laws and regulations may shape the future of the metaverse & laws around it.

Metaverse law firms

Some legal practitioners have used the terminology, ''metaverse law,'' to represent their law firm's name. In other contexts, a real estate and business law firm claimed to be the first "metaverse law firm" in the metaverse.[36] Similarly, a personal injury law firm was publicized for opening a metaverse law firm.[37] For these legal practitioners, the usage of the phrase, metaverse law, indicates the virtual location of a law firm in the metaverse, as opposed to recognizing metaverse law as a subclass of existing legal frameworks or a specialized legal field.

Trademark dispute

Law firms using the metaverse law as their business name or description have led to a trademark dispute between at least two law firms. In Falcon Rappaport & Berkman PLLC v. Metaverse Law Corporation, Falcon filed a trademark claim against Metaverse Law in the United States District Court for the Southern District of New York, objecting that the Metaverse Law firm should not have a monopoly over the phrase "metaverse law."[38] The United States Patent and Trademark Office's trademark registry shows that "METAVERSE LAW" is a registered trademark for Metaverse Law Corporation.[39] However, a registered trademark can become canceled if the trademarked name becomes a generic name for goods or services rendered by the trademark owner.[40] The outcome of the trademark dispute will determine whether Metaverse Law Corporation will be able to maintain the exclusive rights to the terminology in legal practice, including in the metaverse space. The question of whether a law firm can maintain trademark rights in the metaverse space is a notable point because the plaintiff in this case operates the law firm in Decentraland, which is a metaverse platform that can be theoretically owned by communities outside of the United States through decentralized network protocol, thereby raising trademark issues that often receive attention from legal scholars and practitioners.[41]

References

  1. 1 2 "Pioneering The Metaverse Law". Metaverse Policy Institute.
  2. ↑ Crutchfield, Ken (2022-01-25). "The Metaverse And The Practice Of Law". Above the Law. Retrieved 2022-03-13.
  3. ↑ Raczynski, Joseph (2021-10-11). "The Metaverse is coming: Is the legal market prepared?". Reuters. Retrieved 2022-03-14.
  4. ↑ Greene, Jenna (2021-05-20). "Reed Smith boldly goes where no law firm has gone before — the metaverse". Reuters. Retrieved 2022-03-13.
  5. ↑ Garon, Jon (2022-01-03). "Legal Implications of a Ubiquitous Metaverse and a Web3 Future". Conference on American Bar Association Business Law. Rochester, NY. doi:10.2139/ssrn.4002551. S2CID 245900453 – via SSRN.
  6. ↑ Moore, Schuyler. "Law In The Metaverse". Forbes. Retrieved 2022-03-13.
  7. ↑ Wiederhold, Jesse (2022-03-02). "Tech and law experts explain "metaverse"". NBC. Retrieved 2022-03-22.
  8. ↑ Kim, Jinhee; Ramos, Arnaldo R.; Kramer, Michael J.; Gigliotti, Ray (2021-10-01). "Let's create Metaverse Law Theories". Metaverse Policy Institute. doi:10.13140/RG.2.2.36101.42720/1 – via ResearchGate.
  9. ↑ Mostert, Frederick; Yeoh, Wei Ting (2022-03-10). "Meta-Worse, a lawyer's mega paradise". Journal of Intellectual Property Law & Practice. jpac008 – via Oxford University Press.
  10. ↑ Chee, Foo (2022-02-08). "EU's Vestager Says Analysing Metaverse Ahead of Possible Regulatory Action". Reuters via U.S. News.
  11. ↑ Stolton, Samuel (2022-01-18). "Vestager: Metaverse poses new competition challenges". POLITICO. Retrieved 2022-03-14.
  12. ↑ Horowitz, Julia. "Wall Street's metaverse dreams take a hit". CNN. Retrieved 2022-03-15.
  13. ↑ Hachman, Mark (2022-02-03). "Microsoft CEO: The metaverse is just games, really". PCWorld. Retrieved 2022-03-19.
  14. ↑ Waters, Richard (2022-02-03). "Satya Nadella: 'Being great at game building gives us permission to build the next internet'". The Financial Times. Retrieved 2022-03-15.
  15. ↑ Chen, Brian X. (2022-01-18). "What's All the Hype About the Metaverse?". The New York Times. ISSN 0362-4331. Retrieved 2022-03-15.
  16. ↑ McCollum, Ciarán (2022-01-24). "Metalaw: the Law of the Metaverse". IoT For All. Retrieved 2022-03-13.
  17. ↑ Haley, Andrew (1956). "Space law and Metalaw – A Synoptic View". Harvard Law Record.
  18. ↑ Haley, Andrew (1957). "Space Law and Metalaw - Jurisdiction Defined". Journal of Air Law and Commerce. 24–3 – via Law Journals at SMU Scholar.
  19. ↑ Haley, Andrew (1956). "Space law and metalaw : a synoptic view". Stanford University.
  20. ↑ McCollum, Rathuel (1959). "Tort Aspects of Space Technology". Cleveland State Law Review. 8: 4.
  21. ↑ Bohlander, Michael (2021). "Metalaw – What is it good for?". Acta Astronautica. 188: 400–404. Bibcode:2021AcAau.188..400B. doi:10.1016/j.actaastro.2021.06.039. ISSN 0094-5765.
  22. ↑ York, Kenneth (1958). "Basic Problems in Metalaw". Brief. 53: 243–245 – via HeinOnline.
  23. ↑ Muzyka, Kamil (2020). "The basic rules for coexistence: The possible applicability of metalaw for human-AGI relations". Journal of Behavioral Robotics. 11: 104–117. doi:10.1515/pjbr-2020-0011. S2CID 215770191.
  24. 1 2 Brenner, Susan (2008). "Fantasy Crime: The Role of Criminal Law in Virtual Worlds". Vanderbilt Journal of Entertainment & Technology Law. 11 – via Vanderbilt University.
  25. ↑ Huddleston Jr., Tom (2021-11-03). "This 29-year-old book predicted the 'metaverse' — and some of Facebook's plans are eerily similar". CNBC. Retrieved 2022-03-14.
  26. ↑ Shen, Michelle. "Sexual harassment in the metaverse? Woman alleges rape in virtual world". USA TODAY. Retrieved 2022-03-14.
  27. ↑ Frenkel, Sheera; Browning, Kellen (2021-12-30). "The Metaverse's Dark Side: Here Come Harassment and Assaults". The New York Times. ISSN 0362-4331. Retrieved 2022-03-14.
  28. ↑ "Objectives – Metaverse Law Nucleus". The Wayback Machine. 2022-03-14. Archived from the original on March 14, 2022. Retrieved 2022-03-14.
  29. ↑ Uberti, David (2022-01-04). "Come the Metaverse, Can Privacy Exist?". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-03-14.
  30. ↑ Hunter, Tatum (2022-01-13). "Surveillance will follow us into 'the metaverse,' and our bodies could be its new data source". The Washington Post.
  31. ↑ Fuller, Michaela (2021). "Legal Issues Ripe for Picking with Shift to the Metaverse". Richmond Journal of Law and Technology. Retrieved 2022-03-15.
  32. 1 2 Ronald, Leenes (2007). "Privacy in the Metaverse" (PDF). The Future of Identity in the Information Society. Vol. 262. p. 97. doi:10.1007/978-0-387-79026-8_7. ISBN 978-1-4419-4629-4. S2CID 8632227 – via Springer. {{cite book}}: |journal= ignored (help)
  33. ↑ Palmer, Bristows LLP-Jake (2022-10-06). "Copyright in the metaverse". Lexology. Retrieved 2023-01-27.
  34. ↑ "Intellectual Property in the Metaverse. Episode IV: Copyright". intellectual-property-helpdesk.ec.europa.eu. Retrieved 2023-01-27.
  35. ↑ Mack, Olga V. (2022-04-18). "What Laws Apply In Metaverse? - Above the LawAbove the Law". Retrieved 2023-01-27.
  36. ↑ "Falcon Rappaport & Berkman PLLC Launches First-of-its-Kind Metaverse Law Firm". PRNewswire. Falcon Rappaport & Berkman. 2021-08-26. Retrieved 2022-03-13.
  37. ↑ Lyle, Moran (2021-12-20). "Why this personal injury firm set up shop in the metaverse". American Bar Association Journal. Retrieved 2022-03-14.
  38. ↑ Jaeger, Max (2021-09-22). "California Firm Can't Claim 'Metaverse Law' TM, Rival Says". Law360. LexisNexis. Retrieved 2022-03-13.
  39. ↑ "Trademark Electronic Search System (TESS)". United States Patent and Trademark Office. Retrieved 2022-03-14.
  40. ↑ "Trademark Manual of Examining Procedure, 1209.01(c)(ii) Terminology". United States Patent and Trademark Office.
  41. ↑ Zim, Jared (February 2, 2022). "The Future of Trademarks in the Metaverse". University of Miami School of Law.
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