Insights

A 2023 U.S. Supreme Court decision limiting the reach of U.S. trademark law outside of the country could lead to further litigation by trademark holders looking to push back on those boundaries, says Crowell & Moring partner Preetha Chakrabarti, a member of the firm’s Technology & Intellectual Property Department and the Advertising & Brand Protection Group.

Endless articles, commentary, and blog entries have been rattling the cage about the brave new world of the metaverse and the unprecedented legal issues that may arise and, in some cases, that have already arisen.

At times, the real world can feel too set in its ways to change. Can the metaverse serve as an opportunity to wipe the slate clean and start over? If so, what would you consider? How would you create it with environmental, social, and governance principles in mind?

Through the metaverse, the global fashion marketplace is experiencing unprecedented digital transformation that will fundamentally reimagine and expand how consumers experience fashion. The power of the metaverse does not end in its untapped monetary valuation (estimated at $800 billion over the next 10 years); it also provides a digital platform that creates new ways for global companies to connect with their consumers. With all that this medium has to offer, it is no surprise that major fashion brands are tuning in and entering the metaverse in droves.

The term “metaverse” was coined by science fiction novelist Neal Stephenson in his 1992 dystopian thriller, “Snow Crash.” Stephenson’s metaverse allowed users to create almost limitless avatars and experience a new, virtual world firsthand, accessible through virtual reality goggles or “terminals.” Thirty years later, what was once science fiction is now reality. Immersive and interactive 3D digital worlds housed on a variety of virtual platforms are gaining in both prevalence and popularity—accessible through virtual or augmented reality goggles, smartphones, and computer screens. Each virtual platform, or metaverse, functions as its own world, with unique rules, currency, and user experiences.

Emerging technology leads to evolving brand guidelines. With the rise of e-commerce, trademarks were being copied and exploited in ways they had never been before, and guidelines began to emerge for internal and external teams online. Next, brands had to adapt to social media. The Federal Trade Commission began to against influencers, and brands had to carefully monitor what claims influencers were making. Brands also had to attentively manage how their own employees were interacting with social media.