Trade mark dilemmas in the Metaverse: interplay between stakeholders

Alona Yarmak

Journal of Intellectual Property Law and Practice, 2025, vol. 20, issue 5, 339-353

Abstract: The opposite interests of the stakeholders in the Metaverse produce more and more legal uncertainty. The relationship between stakeholders is defined by the author as the triangle of opposite interests, where each interest shapes the development of the Metaverse.If we have too much freedom of expression for developers but little attention is dedicated to IP clearance in which interested trade mark holders find themselves, the Metaverse collapses because of the uncontrolled circulation of fake digital goods. In this situation, developers put pressure on the whole IP system. The value of digital goods decreases which evokes negative reputational consequences for the Metaverse. In contrast, constraints from trade mark holders are also dangerous because the Metaverse will stagnate, and designers will lock in limited creative choices. In this uncertainty, we need to balance conflicting interests and revise lessons from trade mark and technology history.This problem requires an examination of the European Union and the United State case law and scholarly comments because court practice tends to limit the fair use of trade marks in favour of trade mark holders. In contrast, scholars signal potential issues with this approach as overly limiting freedom of artistic expression.

Date: 2025
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