Last year, Facebook relaunched itself as META, and automatically the world began talking about the metaverse. The metaverse is the next generation of the internet, where virtual worlds coexist with human interaction. The key to the metaverse is that it allows users to be present through virtual reality—such as an avatar—and interact with other virtual users. This interaction is projected to eventually utilize other technologies like blockchain and cryptocurrencies, which will enable the transfer of digital assets through virtual reality. Therefore, if digital assets with their respective trademarks are going to be transferred within the metaverse, it is only natural that major companies have initiated trademark registration processes for use in the metaverse. Where is a trademark registered for use in the metaverse? How are trademark rights protected in the metaverse?

The first industries focusing on trademark registration for use in the metaverse have been the video game and entertainment industry, and the fashion industry. The former, because video games such as Fortnite currently utilize this type of interaction; the latter, because the avatars representing users in the metaverse can dress just like the users themselves, wearing the same brands. Nike is one of the companies that has filed trademark applications in the United States for its most emblematic brands, protecting “downloadable virtual goods, virtual retail store services, entertainment services, namely, providing online non-downloadable virtual footwear and clothing for use in virtual environments.” These new trademarks within the fashion industry are not being applied for under the clothing category (Class 25); on the contrary, they are entering categories previously reserved for purely digital products or services (Class 9 and Class 42, among others).

In Costa Rica, where a trademark right is granted through its registration before the Registry of Industrial Property (Registro de Propiedad Industrial), one might think that a third party with no relation whatsoever to Nike, for example, could apply for a NIKE trademark in Class 9 for technological services. This would allow them to misappropriate the recognition that the brand has achieved within the clothing industry and use it to their advantage for use in the metaverse. Trademark Registry Offices will have to face these types of scenarios and provide adequate protection to legitimate owners against initiatives that attempt to unfairly take advantage of a brand's recognition.

It is not yet clear what the metaverse will look like; what is clear, however, is that it will revolutionize consumption, and all brands will need to adapt to compete in this new market. The Intellectual Property team at Facio & Cañas is preparing to assist its clients facing the new demands of the technological and Intellectual Property market.

[1] Taken from the website of the United States Patent and Trademark Office (https://www.uspto.gov/patents/search).