Look at your feet. Many of you (raises his hand) wears Nikes right now. For the fiscal year ending May 31, 2021, Nike reported its revenue increased 19% to $ 44.5 billion for the year. But it’s here. What about Metaverset?
Why Nike is interested in Metaverse
For those who are not yet familiar with the concept, the easiest – but very incomplete – way to imagine Metaverse is to imagine that you exist in a real video game. Nike goes in and gives very cool meta-things.
This is no joke. Nike is very serious about Metaverse.
Patent applications that go all the way back to the pre-Metaverse universe in 2018 reveal that Nike has seriously built up the tools that they can do business in Metaverse. These digital tools will include sneakers, but also avatars and other forms of virtual branding. Of course, Nike intends to sell you digital products (and you want to buy them because Nike knows how to make you want them), but the meta-plan revolves around entire digital worlds.
Is it just Nike that is Nike? Of course, but if we choose to define it as creating new net revenue streams, as it has done throughout its history, then that’s good for it. Someone is going to own Metaverse swag, and it might as well be Nike.
Metaverse has rules that will be new to Nike
Nike must be prepared for the idea of destruction by duplication. In this time world, Nike has been a lot litigious too late with his intellectual property (IP). Yet duplication in Metaverset will transcend our current perception of what is legal. The value of Nike’s metavars will definitely be affected by what the company would consider pirates and others would call artists.
In the real world, there’s a real art project called the Museum of Forgeries with significant commercial use. In short, Brooklyn’s art collective Mschf bought an original Warhol for $ 20,000 and made 999 exact fakes. It then blended into the original and sold all 1,000 “maybe real” Warhols for $ 250 each for a total of $ 250,000, of which $ 230,000 is profit.
The same will happen in Metaverset. Some rare Nike drops (what we sneakerheads call a new release of a shoe or even a color – known as the “colorway” – of a shoe) will be genuine, some may be real, and some will be either intentionally or unknowingly fake.
Metaverse is new to the courts
Regarding how the courts will ultimately handle these metaverse disputes, Samir Patel, a Miami attorney and a nominee for the Miami-Dade Cryptocurrency Task Force, recently tweeted:
A judge’s lack of knowledge about blockchain technology is completely missed by developers who believe that their inventions circumvent the law. Judges judge by what they know, not what you know. https://t.co/QDnLihGu9e
– Samir Patel (amSamirPatelLaw) October 26, 2021
I spoke with Patel about the realities of the new Metaverse and how it becomes a quick, harsh discovery when judges realize that precedent of ordinary law will be more of an obstacle than an aid in settling Metaverse cases. As Patel said:
“Legal doctrine such as property rights, breach of wet contracts and copyright infringement of human-derived work will govern the relations in the metaverse (MV).”
He continued: “So when Nike wants to participate in MV, whether it is with virtual storefronts, avatar equipment or creating new products exclusively for the MV, then its lawyers need to create a connection between MV’s legal infringement or claims. . and meatspace. “
Just the fact that few to no judges (and very few lawyers) have used or even heard the term “meatspace” is in itself a problem. The term refers to our physical world, as opposed to cyberspace or a virtual environment such as Metaverse.
So yes, Metaverse claims have to be stupidized for judges, at least in the beginning written in such banal ways, by using such a traditional language so that the judges do not get lost.
Can Nike help build a Metaverse legal structure?
Patel sees a real opportunity here. Nike has the resources to train judges through a lawsuit because they can afford to pay their lawyers to sue, but other smaller petitioners would have a hard time convincing a judge that they own virtual property located on a virtual cadastral register, maintained by a decentralized blockchain, “he said.
Patel explained to me that if he were to buy virtual land in Metaverse, the judge would probably see the transaction as a sale of goods and not a transfer of real estate. Because statutory provisions do not contain or maintain the concept of virtual real estate, this virtual land cannot be registered in a virtual cadastral register because that register is not controlled by a municipality or sovereign.
“So if Nike were to sell a pair of virtual sneakers, but not supply sneakers to the buyer, then it is a breach of contract in the sale of sneakers. But the negotiated exchange of value still needs to be articulated and possibly registered in meatspace, ”Patel explained.
What this will mean in practice is a mystery to judges where there is no evidence that a contract has been entered into in Metaverset, such as a verbal contract entered into by two avatars. So how can a judge state one side of this dispute? It’s exactly the same as an oral contract made in meatspace. If an avatar can prove reliance on the verbal contract in Metaverse, just as they might be able to do so in meatspace, then there may be evidence to support a plaintiff’s claims.
Metaverse can be as lawsuits as meatspace
And there will be plenty of claims. If Nike has a problem with its creations being altered in meatspace without its permission, and defendant in Nike cases bravely reply that change is art, not IP theft, just imagine Metaverse. Patel noted:
“IP laws will be tested in MV if artificial intelligence is used to create landscapes or other virtual objects.”
He added: “It’s because AI-derived work is not covered by US copyright laws. So if I were to implement AI in the MV and the AI creates something wonderful, I have no rights to the derivative work, and a others can imitate the work and claim copyright to themselves.It will be extremely difficult to protect its copyrights because the MV can be so large and the infringer can be an AI-developed entity.Rjudices will address these issues using the meatspace legislation on copyright. “
This leaves us with the only viable way to change how judges view and decide cases in Metaverset: by changing our existing laws to meet virtual reality. Without this change, seen through the eyes of the judges, everything is meatspace, and virtual reality does not exist as a legal reality.
The true legal reality, as Patel pointed out, is that “Nike would be wise to hire lawyers who are well-versed, and I mean really well-versed, in real estate, the Uniform Commercial Code, as well as experts in blockchain technology.”
As Metaverse offers a new virtual world of opportunities to create, sell, buy and sue, it becomes fascinating to look through societal, commercial and legal glasses. Just the fact that Nike has gotten ready to create, sell and sue in this new space means that you too need to get ready for the reality of Metaverse, which will soon be coming to a computer or phone very close you.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Aron Salomon is a senior legal analyst at Esquire Digital and has taught entrepreneurship at McGill University and the University of Pennsylvania. Solomon was named Fastcase 50, which recognizes the top 50 legal innovators in the world. His work has been featured in CBS News, CNBC, USA Today, TechCrunch, The Hill, BuzzFeed, Fortune, VentureBeat, Yahoo! and many other leading publications.
Disclaimers for mcutimes.com
All the information on this website - https://mcutimes.com - is published in good faith and for general information purpose only. mcutimes.com does not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information you find on this website (mcutimes.com), is strictly at your own risk. mcutimes.com will not be liable for any losses and/or damages in connection with the use of our website.