TOTAL LICENSING
LICENSING OPPORTUNITIES Tiffanie Lane, Product Manager OpSec Security
The full-blown metaverse might not yet be here, but the dream of a 3D, socially connected virtual world is certainly being shaped in front of our eyes now. As consumers slowly increase their adoption of virtual reality technology and the VR content market is expected to grow by 160% over the next five years, organizations are being presented with new opportunities to benefit from IP licensing and royalties in the metaverse. Expanding customer base with new partnerships In the limitless metaverse, anything is possible. We can already buy virtual Gucci goods for Roblox avatars and watch live concerts on Fortnite, proving new, unexpected partnerships are not only possible, but can also be a great way for businesses to reach new audiences and earn their loyalty. And its not just the luxury brands that are looking to make the move to the metaverse, with Walmart also appearing to be taking steps to enter this new space.
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The concept of a virtual shopping mall where consumers can browse through stores and try things on in the comfort of their own homes is, therefore, not that far-fetched. Online retail is ever-present and expanding, so why shouldn’t it be at the centre of the metaverse conversations? Leveraging licensing partnerships within the virtual retail space can enable brands of all shapes and sizes to achieve great scalability and the ability to convert hard-to-reach consumers faster than ever before. With the metaverse breaking down the geographical barriers, organizations can push their branded products easier to new markets, licensing out their IP and making it work harder for them. It could be a real game-changer to open up new revenue streams and enable fast growth. Brands should, therefore, start establishing clear IP licensing agreements with various metaverse platform providers, ensuring the scope of any license will help protect their reputation in a crowded metaverse space.
Future-proofing licensing strategies The metaverse’s interoperability and the ocean of user-generated content that comes with it will lead to a certain degree of IP mixing and brands being used in unpredicted ways. As such, the risk of infringements arises if a business loses track of its new partnerships or its licensing programs operate in silo. To reduce the risk, organizations can set restrictions to their licensing agreements, maintaining full control and ownership of their IP and preventing specific licensees from selling in some virtual shopping malls or gaming spaces. They also can – and should – ensure one point of access to all partnerships through a license management system. With multiple metaverse platforms and endless partnership possibilities, a single source of truth will not only help protect brand’s reputation but also ensure safe shopping experiences for consumers.
