Brands flocked to file trademark applications for metaverse earlier this year. Now the number of those applications has decreased. causing some to announce the end of the gold rush
Approximately between January and October 5,000 U.S. trademark applications for metaverse and virtual goods or services were filed, according to public filings. From brands such as Nike, Adidas, Tommy Hilfiger, Levi’s and Versace in March. The maximum number is 773. The 2021 total is 1890. However, applications for October are only 334, half of that number in March. That shows signs of decline, according to Josh Gerben, a trademark attorney and founder of Gerben Perrott Law Firm, PLLC.
“The Web3 gold rush is over,” Gerben said. Speculators tend to spend less and have fewer resources than they did earlier this year.”
Marketing professionals have long known the importance of brand trademarks to protect their identities in the real world. However, in the virtual world it’s a little more complicated. Due to ongoing high-profile cases such as Nike accusing retailer StockX LLC of violating the brand’s intellectual property by incorporating its logo into its NFT collection.
“What’s being sold in the metaverse is computer code when rendered by virtual reality to look like shoes,” said Michael Kondoudis, trademark and patent attorney at The Michael Kondoudis law firm. Addressing this protection gap is to file a metaverse trademark application and list virtual goods and services.”
Protecting Digital Lookalikes
Brands want to protect their IP, and ultimately It is the only party monetizing similar and digital services in Metaverse.
“By filing a trademark [companies] There is more power to monitor brand activity and protect digital lookalikes,” said Greg Kahn, CEO of GK Digital Ventures. “Companies should prepare for Web3 by conducting a review of their current trademark portfolio. all of their They should make sure they submit any new applications that will cover potential new types of goods or services in a metaverse or Web3 environment.”
Meanwhile, brands are also looking at what their competitors are doing in the metaverse. For example, after Nike filed for a trademark in November 2021, brands like Puma, Adidas and Reebok followed suit.
“Most applications are speculative rather than actual plans,” Gerben said, meaning that Although brands Has applied for a trademark But they may not have plans to launch an immediate campaign in the metaverse yet, but they have four years to do so. McDonald’s and CVS are currently patenting key elements of the brand in anticipation of the growth of the metaverse.
Brands consider trademark filings to be a cost-effective mechanism to protect their brands. compared to the sky-high legal fees. The cost of filing a trademark in the metaverse is $5,000 and $10,000 for larger companies. Including legal fees by source.
The app points to the brand’s metaverse strategy.
Public trademark files indicate a brand’s intentions in the metaverse.
Applications filed by fashion brands such as Tommy Hilfiger, Levi’s and Versace show that these companies aim to create immersive experiences, such as the opportunity for people to attend virtual fashion shows. This is similar to Decentraland’s Metaverse Fashion Week, featuring brands like Dolce & Gabbana and Hugo’s Boss.
Similarly chain restaurants Chuck E. CheeseThe trademark application of ‘ represents the intent to create “Virtual arcades, concerts and theatrical performances” in the metaverse.
Other brands are seeking revenue streams through simpler virtual meetup spaces. Wendy’s, for example, partnered with Meta’s Horizon Worlds to launch a virtual restaurant called Wendyverse in April. Similarly, Capital One has listed the name of the virtual cafe in the trademark application.
“It appears to be a direct way to monetize the metaverse where you can get hundreds of people in your meeting space while running ads on virtual walls,” Kondoudis said.
Prominent holds for trademark applications and activation of Metaverse are insurance companies and health service groups. This is because of the complex regulations they have to go through, such as the Health Insurance Portability and Accountability Act (HIPPA), before entering the metaverse.