Metaverse law

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Metaverse law refers to legal systems, policies and theories concerning metaverse technologies involving virtual reality, augmented reality, mixed reality, and hyperreality. [1] Metaverse Law also refers to a privacy, AI, and cybersecurity law firm founded in 2018. [2]

Contents

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. [3] 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. [4] 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. [5] [6] 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. [7] [8]

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, [9] 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. [10]

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, [11] [12] and the metaverse market has been struggling to achieve stability. [13] Other critics point out that metaverse is not any more unique than a game. [14] For example, some technology leaders, like Microsoft CEO Satya Nadella, do not distinguish metaverse from a game. [15] [16] 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). [17]

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). [18] 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, [19] and in 1956 Congress of the International Astronautical Federation. [20] Additionally, Haley's metalaw theory has been cited by early and modern legal scholars strictly in space law context, [21] [22] including his critics. [23] 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. [24]

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. [25] 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. [26] 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. [27] [28] 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. [25]

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. [29]

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, [30] privacy experts raise concerns that immersive metaverse experience opens bigger doors for privacy abuse and surveillance by companies. [31] So perhaps unsurprisingly, privacy has been a frequently examined topic in metaverse law and legal experts, [32] and proponents of privacy governance argue that self-governing metaverse communities are insufficient to safeguard privacy protection of users. [33] 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. [33] 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. [34]

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. [35]

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. [36]

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. [37] Similarly, a personal injury law firm was publicized for opening a metaverse law firm. [38] 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 FalconRappaport & 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." [39] The United States Patent and Trademark Office's trademark registry shows that "METAVERSE LAW" is a registered trademark for Metaverse Law Corporation. [40] The recent dispute has been settled by the parties. The parties agreed that the term "METAVERSE LAW" remains Metaverse Law's trademark and Metaverse Law maintains the right to prosecute any non-descriptive infringement of the mark's use, but descriptive uses of the term are permitted. [41] Metaverse Law Corporation is a proponent of decentralized virtual reality spaces (as opposed to the panopticon of a singular dystopian metaverse) and advises tech companies and law firms alike on consumer privacy, ethics, and good governance inside and outside of their metaverses.

Related Research Articles

<span class="mw-page-title-main">Privacy</span> Seclusion from unwanted attention

Privacy is the ability of an individual or group to seclude themselves or information about themselves, and thereby express themselves selectively.

<span class="mw-page-title-main">Virtual reality</span> Computer-simulated experience

Virtual reality (VR) is a simulated experience that employs pose tracking and 3D near-eye displays to give the user an immersive feel of a virtual world. Applications of virtual reality include entertainment, education and business. Other distinct types of VR-style technology include augmented reality and mixed reality, sometimes referred to as extended reality or XR, although definitions are currently changing due to the nascence of the industry.

<span class="mw-page-title-main">Internet culture</span> Culture that has emerged from the use of computer networks

Internet culture is a quasi-underground culture developed and maintained among frequent and active users of the Internet who primarily communicate with one another online as members of online communities; that is, a culture whose influence is "mediated by computer screens" and information communication technology, specifically the Internet.

<span class="mw-page-title-main">Computer-mediated reality</span> Ability to manipulate ones perception of reality through the use of a computer

Computer-mediated reality refers to the ability to add to, subtract information from, or otherwise manipulate one's perception of reality through the use of a wearable computer or hand-held device such as a smartphone.

The ethics of technology is a sub-field of ethics addressing the ethical questions specific to the Technology Age, the transitional shift in society wherein personal computers and subsequent devices provide for the quick and easy transfer of information. Technology ethics is the application of ethical thinking to the growing concerns of technology as new technologies continue to rise in prominence.

A virtual office is part of the flexible workspace industry that provides businesses with any combination of services, space and/or technology, without those businesses bearing the capital expenses of owning or leasing a traditional office.

<span class="mw-page-title-main">Metaverse</span> Collective three-dimensional virtual shared space

The metaverse is a loosely defined term referring to virtual worlds in which users represented by avatars interact, usually in 3D and usually focused on social and economic connection.

Virtual crime, can be described as a criminal act conducted in a virtual world -- usually massively multiplayer online role-playing games, MMORPGs. To grasp the definition of virtual crime, the modern interpretation of the term "virtual" must be assessed to portray the implications of virtual crime. In this sense, virtual crime describes those online acts that “evoke the effects of real crime” but are not widely considered to be prosecutable acts.

An Internet hosting service is a service that runs servers connected to the Internet, allowing organizations and individuals to serve content or host services connected to the Internet.

<i>Fordham Intellectual Property, Media & Entertainment Law Journal</i> Academic journal

The Fordham Intellectual Property, Media & Entertainment Law Journal is a specialty law journal of Fordham University School of Law that publishes articles on topics in patent, trademark, copyright, First Amendment, and media law. According to the 2019 Washington & Lee journal and law review rankings, it is ranked number one in the US for intellectual property law, number two in communications and media law, number three for arts, entertainment, and sports law, and was the most cited US law journal devoted to intellectual property law. The Fordham IPLJ articles have been read into the Congressional Record, cited in the Court of Appeals for the Second Circuit, and in amicus briefs to the U.S. Supreme Court.

J. Thomas McCarthy is a Professor Emeritus at the University of San Francisco School of Law and an internationally recognized authority in the field of trademarks. He is the founding director of the McCarthy Institute for Intellectual Property and Technology Law. He has practiced, written, and taught in the field of trademarks and unfair competition and is a frequent speaker on the subject. He is the author of the authoritative work on intellectual property law, McCarthy on Trademarks and Unfair Competition.

Improbable Worlds Limited is a multinational technology company founded in 2012 and headquartered in London, England. It makes metaverse infrastructure and applications, as well as simulation software for video games and corporate use. It reported revenues of £78m in fiscal 2022, up 260% over 2021.

Information technology law(IT law) or information, communication and technology law (ICT law) (also called cyberlaw) concerns the juridical regulation of information technology, its possibilities and the consequences of its use, including computing, software coding, artificial intelligence, the internet and virtual worlds. The ICT field of law comprises elements of various branches of law, originating under various acts or statutes of parliaments, the common and continental law and international law. Some important areas it covers are information and data, communication, and information technology, both software and hardware and technical communications technology, including coding and protocols.

<span class="mw-page-title-main">Digital privacy</span>

Digital privacy is often used in contexts that promote advocacy on behalf of individual and consumer privacy rights in e-services and is typically used in opposition to the business practices of many e-marketers, businesses, and companies to collect and use such information and data. Digital privacy can be defined under three sub-related categories: information privacy, communication privacy, and individual privacy.

Cross-device tracking is technology that enables the tracking of users across multiple devices such as smartphones, television sets, smart TVs, and personal computers.

A online dating application, commonly known as a dating app, is an online dating service presented through a mobile phone application. These apps often take advantage of a smartphone's GPS location capabilities, always on-hand presence, and access to mobile wallets. These apps aim to speed up the online dating process of sifting through potential dating partners, chatting, flirting, and potentially meeting or becoming romantically involved.

Decentraland is a 3D virtual world browser-based platform. Users may buy virtual plots of land in the platform as NFTs via the MANA cryptocurrency, which uses the Ethereum blockchain. Designers can create and sell clothes and accessories for the avatars to be used in the virtual world.

Ray-Ban Meta Smart Glasses, formerly known as Ray-Ban Stories, are smartglasses created as a collaboration between Meta Platforms and EssilorLuxottica. The product includes two cameras, open-ear speakers, a microphone, and touchpad, all built into the frame. The glasses, announced in August 2020 and released on September 9, 2021, had a controversial reception stemming from mistrust over Facebook’s privacy controls. The small size of the recording indicator light has also led to controversy post-release. Ray-Ban Stories are the latest in a line of smartglasses released by major companies including Snap Inc and Google and are designed as one component of Facebook’s plans for a metaverse. Unlike smart glasses previously created by other companies, the Ray-Ban Stories do not include any HUD or AR head-mounted display. On September 27, 2023, Meta removed the "Stories" name and announced the second generation of Meta Ray-Ban Smartglasses, which featured a Qualcomm Snapdragon AR1 Gen1 processor, upgrade of the cameras to 12 MP, improved audio, livestreaming to Facebook and Instagram, and Meta AI.

Viverse is an open platform for virtual worlds and environments developed by HTC and encompassing multiple devices and applications. Conceived as a metaverse, the platform is intended to create an interconnected series of virtual worlds, and includes elements of augmented reality. The Viverse platform consists of various components, including virtual reality headsets, social applications, and content creation tools.

TSB Gaming, doing business and commonly known as The Sandbox, is a metaverse platform developer. Founded in 2011, the company is now a subsidiary of the Hong Kong-based Animoca Brands. The company's chief product is The Sandbox, a 3D blockchain-based video game, platform, and game creation system released in 2021, a sequel to the 2D world-building mobile game developed by the company in 2012.

References

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  2. ↑ "Metaverse Law Firm CA | Privacy, Cybersecurity, and AI Law". Metaverse Law. Retrieved 2024-03-11.
  3. ↑ Crutchfield, Ken (2022-01-25). "The Metaverse And The Practice Of Law". Above the Law. Retrieved 2022-03-13.
  4. ↑ Raczynski, Joseph (2021-10-11). "The Metaverse is coming: Is the legal market prepared?". Reuters. Retrieved 2022-03-14.
  5. ↑ Greene, Jenna (2021-05-20). "Reed Smith boldly goes where no law firm has gone before — the metaverse". Reuters. Retrieved 2022-03-13.
  6. ↑ 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.
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  9. ↑ 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.
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  11. ↑ Chee, Foo (2022-02-08). "EU's Vestager Says Analysing Metaverse Ahead of Possible Regulatory Action". Reuters via U.S. News.
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  13. ↑ Horowitz, Julia. "Wall Street's metaverse dreams take a hit". CNN. Retrieved 2022-03-15.
  14. ↑ Hachman, Mark (2022-02-03). "Microsoft CEO: The metaverse is just games, really". PCWorld. Retrieved 2022-03-19.
  15. ↑ 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.
  16. ↑ 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.
  17. ↑ McCollum, Ciarán (2022-01-24). "Metalaw: the Law of the Metaverse". IoT For All. Retrieved 2022-03-13.
  18. ↑ Haley, Andrew (1956). "Space law and Metalaw – A Synoptic View". Harvard Law Record.
  19. ↑ Haley, Andrew (1957). "Space Law and Metalaw - Jurisdiction Defined". Journal of Air Law and Commerce. 24–3– via Law Journals at SMU Scholar.
  20. ↑ Haley, Andrew (1956). "Space law and metalaw : a synoptic view". Stanford University.
  21. ↑ McCollum, Rathuel (1959). "Tort Aspects of Space Technology". Cleveland State Law Review. 8: 4.
  22. ↑ 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.
  23. ↑ York, Kenneth (1958). "Basic Problems in Metalaw". Brief. 53: 243–245 – via HeinOnline.
  24. ↑ 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.
  25. 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.
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  27. ↑ Shen, Michelle. "Sexual harassment in the metaverse? Woman alleges rape in virtual world". USA TODAY. Retrieved 2022-03-14.
  28. ↑ 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.
  29. ↑ "Objectives – Metaverse Law Nucleus". The Wayback Machine. 2022-03-14. Archived from the original on March 14, 2022. Retrieved 2022-03-14.
  30. ↑ Uberti, David (2022-01-04). "Come the Metaverse, Can Privacy Exist?". Wall Street Journal. ISSN   0099-9660 . Retrieved 2022-03-14.
  31. ↑ Hunter, Tatum (2022-01-13). "Surveillance will follow us into 'the metaverse,' and our bodies could be its new data source". The Washington Post.
  32. ↑ Fuller, Michaela (2021). "Legal Issues Ripe for Picking with Shift to the Metaverse". Richmond Journal of Law and Technology. Retrieved 2022-03-15.
  33. 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)
  34. ↑ Palmer, Bristows LLP-Jake (2022-10-06). "Copyright in the metaverse". Lexology. Retrieved 2023-01-27.
  35. ↑ "Intellectual Property in the Metaverse. Episode IV: Copyright". intellectual-property-helpdesk.ec.europa.eu. Retrieved 2023-01-27.
  36. ↑ Mack, Olga V. (2022-04-18). "What Laws Apply In Metaverse? - Above the LawAbove the Law" . Retrieved 2023-01-27.
  37. ↑ "Falcon Rappaport & Berkman PLLC Launches First-of-its-Kind Metaverse Law Firm". PRNewswire. Falcon Rappaport & Berkman. 2021-08-26. Retrieved 2022-03-13.
  38. ↑ Lyle, Moran (2021-12-20). "Why this personal injury firm set up shop in the metaverse". American Bar Association Journal. Retrieved 2022-03-14.
  39. ↑ Jaeger, Max (2021-09-22). "California Firm Can't Claim 'Metaverse Law' TM, Rival Says". Law360. LexisNexis. Retrieved 2022-03-13.
  40. ↑ "Trademark Electronic Search System (TESS)". United States Patent and Trademark Office. Retrieved 2022-03-14.
  41. ↑ Law, Metaverse (2022-07-26). "Press Release - Metaverse Law". Metaverse Law. Retrieved 2024-03-11.
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