The future is virtual — but the legal consequences are real.
At Centrik, we explore the evolving techno-legal landscape and decode the challenges of law beyond physical boundaries.
INTRODUCTION
The metaverse is an artificially created three-dimensional virtual environment where an individual, while sitting in a room, café, hotel, or any other location, can shop, travel, study, and perform various other activities using specialized headsets or smart glasses. It has been suggested that the metaverse may represent the future of digital interaction, extending beyond current technological imagination. The term ‘metaverse’ is derived from two components: ‘meta,’ a Greek prefix meaning ‘beyond,’ and ‘verse,’ referring to ‘universe.’ Thus, the metaverse signifies a realm beyond the physical universe. The concept is often associated with the idea of a ‘multiverse,’ which refers to the theoretical existence of multiple universes. Traditional internet usage is largely limited to two-dimensional interfaces accessed through computers and mobile devices. In contrast, the metaverse provides an immersive three-dimensional experience. For example, watching a cricket match on television offers a two-dimensional experience, whereas virtual reality technology can provide a 360-degree immersive viewing experience. The metaverse may be described as a ‘post-reality’ ecosystem that amalgamates digital virtual environments with physical reality.
LEGISLAIVE OUTLOOK GOVERING THE METAVERSE PLATFORM AND INDUSTRY
The concept of the metaverse has existed for over a decade, albeit in indirect and evolving forms. This technology is still in its primary development phase. However, significant technological and regulatory developments are still required to ensure its seamless functioning. The major regulation framework of metaverse is the law. Presently there are no provisions and law that can directly govern the offences under meta universe. Therefore, a comprehensive regulatory framework is necessary for the proper functioning of the industry. To deal with the matters related to metaverse and with the virtual spaciousness there are general laws for security, transparency and uniformity. Laws to regulate metaverse industry are:
Intellectual Property Laws
Intellectual Property laws govern the rights of the inventor, the one who composes, produces, designs the new inventions, creations and most importantly inventions. As NFTs i.e. Non-Fungible Tokens are part of metaverse, intellectual property laws are required for the proper governance.
Copyright
Under the copyright law it is important to understand the subject matter of copyright and works protected under the copyright law. The provisions for the same are under Section 13 and 14 of the Copyright Act, 1957. Copyright protects the originality of expression, moral rights and economic rights. Copyright law is very significant for the metaverse realm as users create avatars, virtual estate, new inventions and creations, etc. If in metaverse platform a person creates work that already exists in the real world then the original creator can sue the person for the infringement of copyright. If a user creates an avatar of an NFT that already exists then the original owner can sue for the infringement and the defaulter might also need to pay compensation to the real owner.
Patent
The advancement in VR and AR tools will also require Intellectual Property laws for patent rights. Patent protection may be necessary for new technological inventions, software mechanisms, hardware systems, and innovative processes developed for immersive virtual experiences within the metaverse.
Trademark
Trademark law will apply where brands, logos or trade names are used in the metaverse platform and any unauthorized use may amount to infringement. It may also extend to cases of passing off, brand impersonation, and the creation of deceptive virtual goods bearing registered marks, which can mislead users and dilute brand value.
Contract Law
The metaverse also provides platform for buying and selling of goods and property. People can trade goods and lands virtually. Hence essential elements of e-contract shall apply, such as offer and acceptance, free consent between the parties, lawful consideration, the agreement made between the parties must be lawful, the contract between the parties must be enforceable by law and parties must be competent enough to contract. Now there can be legal issues either of the parties may have. Hence, they can be sued for the breach of contract and compensation for damages from the defaulting party under the contract law.
Law of Torts
When there is a civil wrong, the matter will be decided under the tort law. When we talk about metaverse harmful activities, it can include damage to property, assault, emotional stress and defamation. The party liable shall be asked by the court to pay compensation to the party to whom damage has been caused. Defamation is another issue in which false accusing and damaging the status of the user will be charged under defamation law.
CONCLUSION
There is an urgent need for a comprehensive regulatory framework governing metaverse technology. Like any emerging technology, the metaverse may prove to be either a boon or a challenge for the society, depending upon its regulation and usage. The metaverse has the potential to significantly transform human interaction and economic structures.
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