The Impact of the Metaverse in Law

Mark Zuckerberg, CEO of Meta, predicts the metaverse will be “the biggest opportunity for modern business since the creation of the internet.” While Zuckerberg recently faced backlash over the reportedly low current usage, one cannot help but notice the continued hype, partnerships, investments, and developments in the space. Large and small businesses, celebrities, and even law firms continue to stake their places in the metaverse, thereby begging the question of when, not if, the metaverse predictions will come to fruition. Just as the internet changed the practice of law, introducing new methods of communication, research, and legal challenges, the metaverse will do the same. Preparing and informing ourselves for this digital disruption will be key in maintaining legal competency, ethics, and competition. Below, we venture into some legal areas which are already being affected.

Privacy and Security

Privacy and security are far from new legal topics. Both global and domestic privacy laws have been a focus over the last few years, with the emergence and focused enforcement of laws such as the General Data Protection Act (GDPR), California Consumer Privacy Act (CCPA), and the Illinois Biometric Information Privacy Act. As companies are grappling to maintain compliance with the ever-changing privacy landscape, the metaverse will likely bring forward heightened and new considerations. One Forbes article quoted that in just twenty minutes of virtual reality use, technology can generate some two million unique data elements. Right as heightened concern over consumer privacy has elicited regulatory enforcement concerning privacy violations involving biometric and location data, the metaverse entails a virtual world, accessed by virtual-reality goggles and haptic vests, collecting millions of unique data elements such as the way you breathe, walk, think, move or stare. While some may see opportunity for tailored experiences, technologies and companies collecting and leveraging this information must ensure compliance with applicable privacy laws.

Intellectual Property

Intellectual property is an area already immersed in litigation and legal speculation. As businesses and consumers adjust to the digitization of business opportunities, trademarks, copyrights, and patents are front and center. Litigation involving virtual Birkin handbags known as “MetaBirkins,” knock-offs of Bored Ape Yacht Club Non-Fungible Tokens, and unauthorized images of Nike shoes were quick to make headlines and incentivize companies to protect themselves in a digital world. In fact, a source from The Law Office of Michael Kondoudis detailed that between January and September of 2022, the USPTO received more than 9,000 metaverse-related trademark and patent applications.

Electronic Contracting

As businesses continue to immerse themselves in the industrial nature of the metaverse, there is an increase of e-commerce,

(continued on page 12)

Be the first person to email the correct answer to Adrienne.BennettCluff@ nashvillebar.org, and your name—along with the correct answer—will appear in the next issue.

OCT/NOV GOLDEN OLDIES

Congratulations to Judge Cynthia Chappell of the Criminal Court, Division VI for correctly identifying the individuals in last issue’s photo! From left to right: Cecil Branstetter, Jane Stranch, & Harry Phillips.

NBA staff and members marched in the Nashville Veterans Day Parade.