Possible Copyright Challenges That Might Arise In Established Metaverse

Author: LawSphereX

Category: Intellectual Property

Published: 2026-08-23T20:45:40.814677+00:00

Updated: 2026-08-26T17:10:06.797+00:00

POSSIBLE COPYRIGHT CHALLENGES THAT MIGHT

ARISE IN ESTABLISHED METAVERSE

Alagappan. K, Tamilnadu Dr. Ambedkar Law University, Chennai

ABSTRACT

The metaverse has been receiving a lot of attention after Facebook changed its name to Meta in the year 2021. Metaverse is nothing but a new version of using the Internet to connect people from all over the world, to play, work and to do a lot more activities. This brought in a lot of confusion all over the Metaverse. Metaverse is described as the using of internet with headphones and other devises. There are also digital representations used in the metaverse known as the avatars. There might be a lot of issues arising in terms of Copyright due to Metaverse. One of the prime questions that arises is that, does metaverse falls under the regime of Copyrights or is there a need to bring in new laws and regulations for the same. As we are in the starting stage of the improvement, copyright laws can be used to regulate Metaverse.

Keywords: Metaverse, Copyright, challenges, Three-dimensional, Meta.

Introduction: After October 2021, after Facebook changed its name to Metaverse, the word Metaverse has been used a lot all over the media platform. Meta planned to construct the new version of Metaverse once it got renamed, where people could connect with lot of other people and do a lot more activities. Many companies started to invest a lot on new technologies once this new was spread. All the attention grabbed by the metaverse started to disappear, few months after the wide spread of the news. Metaverse is described in a lot of ways by people. Metaverse is already there in the form of digital games and other online platforms is the contention of some people. On the other hand, Metaverse is the future of the internet after 10 years is being argued by other set of people.

The proper definition of Metaverse, the challenges arise to copyright in terms of Metaverse and the confusion it causes are clearly clarified under this article. Everything wise is easy. How people experience the internet is all about Metaverse. The immersive internet is the best way to describe a metaverse, which is a three- dimensional online platform that allows people to use headphones and other equipment. The internet that we experience currently is only two-dimensional and you have only limited computer screens and mobile phones. The users need different avatars to represent themselves as the metaverse has immersive internet. Metaverse makes everything you witness is to be real. To interact in the digital environment, people use the avatars to represent themselves. To create a Crash type digital world a lot of attempts have been taken.

Technologies weren’t made a lot available for many centuries. Though a lot on online games and video games exist nothing could be compared to the reality that Metaverse has created. To make a full scale metaverse a lot of various technologies have come together. Though a lot of various technologies have come together, it doesn’t provide with the same level of comfort, more power and available at low cost like the Augmented reality and the virtual reality. By the end of this year there is a lot of opportunity for Metaverse to make around 800 billion Dollar USD. A lot of companies all over the world planned to enter Metaverse after this. Many reputed companies such as the Adidas, Nike, Walmart, Gap etc started entering Metaverse. The first lender to enter the Metaverse was a US Bank named the JP Morgan.

It opened an Onyx Lounge which is a virtual Longue in Decentraland, which is nothing but a virtual world on Blockchain. Pricewaterhouse which is an accounting firm and has its unit in Hong Kong revealed that it needs virtual real estate in Sandbox, which is nothing but a digital forum where players could

play and monitor their own visual experiences. Digital Beer in the Decentraland was presented by the Heineken. Although the drink cannot be tasted, Heineken states that it will gather people altogether in one place. Metaverse might be the Opium for the masses, which is yet another statement. The CEO of the Tesla, Elon Musk says that Metaverse is going to rule the future. To make an alternative to the Metaverse Musk in his Neuralink company has developed a chip. So, the main purpose of this chip is that it can be implanted surgically inside of the brain which takes users to virtual reality. The version of Internet Metaverse is not as bad as compared to the Musk’s proposal. Can the Copyright regime be brought to the new technologies such as the Metaverse is an important question to be answered. Is there a regulation for novel Copyright is needed to protect Metaverse is another question.

Metaverse could arise a lot of problems related to users’ privacy, access to their data. No matter how much new issues it brings in, it must be brought under the ambit of Copyright Law. No matter how much challenges and issues arise out of Metaverse it must not change the core of Copyright law. The initial stages of the Metaverse can be governed by the laws of Copyright itself. A lot of technologies such as the augmented reality, virtual reality, blockchain, Artificial Intelligence, cryptocurrencies are some platforms where Metaverse merges with. Metaverse seems to be a bit of a challenge as how it is compatible with all the other technologies. The issues in the Metaverse would create a lot of confusions in regulating the present framework of Copyrights. We can focus on digital content which gives the experience that of the Metaverse instead of using the Metaverse Technologies.

This digital content may include a lot of things such as audios, videos, tests etc. , This makes Metaverse same from that of already existing digital games and digital platforms. Metaverse is not the greatest issue in purview of Copyright law. The core of the Copyright law is strong enough to face challenges and the confusion causes by the Metaverse. Metaverse Definition: Defining the internet in the early 90s is how it feels to define a Metaverse now. It cannot be defined as the Metaverse itself. Everyone who is using the Metaverse has their own way of defining and interpreting what a metaverse is. 1 Meta and Universe, that is how we part the term

1 Coin telegraph, What is Metaverse in Blockchain? 2022.

Metaverse. There are two groups in which a Metaverse can be explained. On one hand some people argue that Metaverse is the future of the Internet, as it will show its supremacy in about

10 years. Mark Zuckerberg gave this statement saying that only if you use the Metaverse, you

will start to know how it works, but it gets a little tough as Metaverse is not the reality yet. On the second note, many online games and virtual technologies are available already in the form of Metaverse. 2 To understand the enormity, it is okay to use Metaverse as a distinctive descriptor as said by Matthew Ball. 3 There appears to be a lot of advantages in the rise of the new technologies and the technologies such as the metaverse ill cause a lot of important changes. Metaverse has already came into force and it will start to stay and evolve. Natural evolution of Web 3. 0 is how the Metaverse is defined at times. 4 To explain this the internet history may be divided into 3 aspects. The first one is the Internet 1. 0 where people only get the read-only content. 5 The second one is the Web 2. 0.

It is the supremacy right now which helps the users to interact, create and share their own content all over the world. 6 But the users won’t get any benefits for the content they create. Last and the third one is the Web 3. 0, which is considered to be the future of the Internet, where users could create and share their own content and they will also get benefits out of it. The web 3. 0 cuts off the intermediaries allowing the users to get benefits for their own content. So, the question that arises now is whether Metaverse is web 3. 0. but Metaverse is different from that of the web 3. 0. who owns and controls the internet content is all about web 3. 0. On the other hand, how users experience the internet is all about Metaverse. Metaverse can be termed to be as an immersive world, where users not only have three-dimensional view but also represent them in the form of various avatars.

Web 3. 0 is based upon the blockchain as it gives full control over the data of its users. A lot of equipment such as headsets, goggles, head-mounted device, suits, gloves,

smartwatches, and even more is required to use a metaverse. To transfer big data, there is no

2 Geri Mileva, Top 10 Metaverse Games to Immerse Yourself, 2022.

3 Adi Robertson and Jay Peters, what is Metaverse, and do I have to care? 2021.

4 Thought Leadership Metaverse: The natural evolution to Web 3.0, WAMDA, 2022.

5 Nupur Choudhury, World Wide Web, and its journey from Web 1.0 to Web 4.0, 5 INT’L J.

COMP.SCI.INF.TECH, (2014).

6 Lisa Veasman, Piggy Backing on the Web 2.0 Internet, HASTINGS COMM & ENT L.J. 311, (2008).

need for speedy internet in terms of Metaverse. This hardware had been developed in terms of its existence itself. Oculus was introduced by the Facebook in the year 2014. It is nothing but where headsets for gamers are made for about 2 billion dollars and started improving the technology of headsets.7 More than 6 billion headphones have been sold by the Meta in the year 2021.8 The headsets were experimented by a reporter of Wall Street Journal to attend meetings and meet other avatars and got a result that he ended up with headache and eye pain. Over the years the Metaverse will rule the world and the size of the headsets will be like that of regular glasses.9 A 3D avatar is needed to start interacting with other people in a Metaverse. Avatars are nothing

but how the users represent themselves in the Metaverse world.10 Many issues relating to the ownership of copyrights may arise in terms of Avatars. Content on the Metaverse that got previously licenced by the Copyright: There might start issues relating to previously licenced copyright content on the Metaverse in the future. A lot of licenses were signed by the parties when the Metaverse was not in existence. It cannot be said to be a new problem when the there appears to be a copyright issue due to a newly invented technology.11 In the case of Random House, Incorporated v. Rosetta Books LLC the issues relating to digital technologies were discussed.12

Transfer of rights under the copyright laws allows the holders of copyright to get freedom of contracts.13 If the transfer appears to be vague or if the rights must be spilt down for both the parties, that is when problem arises. If those problems arise that is when there is a need to find the true parties. The parties already know the future scenario in terms of singing licenses. To find a technology that is several centuries advanced is hard to find. Metaverse id one among those rare technologies. During the time of unfair negotiations, the creator’s work is said to be protected. For works relating to hiring, joint authorships, the termination right will not appear. Transfer of technologies in terms of copyright is not used in certain countries such as the Spain,

7 Kurt Ivy, how these entrepreneurs made the switch, 2022.

8 Tonya M. Evans, Crypto kitties, Cryptography and Copyright, 47 AIPLA Q. J, (2019).

9 Pixelplex Team, Decentalised economy, the role of Blockchain in the Metaverse, PIXELPLEX, (2022).

10 Andrew D. Kasnevich, IP in the Metaverse, CIRCLEID, 2022.

11 Doug Dawson, Network Requirements for the Metaverse, CIRCLEID, 2022.

12 David Chen, the metaverse is here, 2022.

13 Molly Wood, when Facebook bought oculus did it make the VR firm less relevant? 2019.

Belgium, Poland etc. , which remains to contrary to the US laws. Of fair use the justification is given to the restrictive approach. Most creators are being vulnerable to negotiate and end up getting unfavourable terms in protecting their original works. Transfer of rights are not prohibited under the US laws. To claim back the rights of the owners is allowed in the US laws. 14 It gets difficult for those creators to get rights due to the legislative restrictions. If might cause huge problem to the creators if the Metaverse gets into a transfer agreement. The date on which the Metaverse had been created would also become a problem to find. Every problem arising out of this case must be solely addressed by the courts of such countries. Who owns the Metaverse rights must be clearly defined by the parties in the license to copyright.

There are no clear definitions to Metaverse as already mentioned above. There is no need to mention only the Metaverse rights alone in the Copyright license. To problems relating and arising out of digital platforms such as the Metaverse, there is a need to widen up the copyright laws so that the other creators wouldn’t be affected. Metaverse software Copyright: The most important backbone of Metaverse is the software. There is a need for more developers in creation of these software. 15 A 3D Metaverse software platform such as Nvidia has started an access to omniverse. 16 For the sake of having Metaverse engineers the company is being working. More than one ten thousand downloading is done by Omniverse in 2022 according to Nvidia. Software is a literary work under copyright work in many countries.

Computer programs are also considered to be as literary works since 1980 by the Copyright Act of the US. To regulate the copyright and to clarify the copyright protection over the software, a software directive was agreed by the European community in the year 1991. 17 Software can be considered as both open source and closed source. Like the software related to android, open source allows anyone to develop and study. That software cannot be considered as a standard copyright work. Free access and distribution of software is available widely to maximize the copyright work. The software producers earn revenue by giving

14 Tyler T. Ochao, who owns an Avatar? 14 VAND. J. ENT & TECH. L. 959-961, (2012).

15 Matthew Ball, the metaverse: what it is, where to find it, and who will build it, 2020.

16 Mark A. Lemley & Ziv Shafir, who chooses open-source software, 78 U. CHI. L. REV. 139, (2011).

17 Brandy Betz, Nvidia Makes its Metaverse-Building software, COIN DESK, 2022.

consultation and other services rather than from selling as the open source allows users to use it for free. Metaverse is a software created by a lot of different software developers, so interoperability is not as important for metaverse like other fields. Other software would relate to closed source. 18 Ans others will be based upon open source. Which approach will prevail over the other will depend on the future of Metaverse. Reverse engineering for software is needed for interoperability in Metaverse. Many Jurisdictions allows the software reverse engineering with certain conditions under the copyright law. With the development of Metaverse, this would become a very great problem. Metaverse and the Block chain Technology: In Metaverse Blockchain will have a great impact. If only the Metaverse is open to all, the Metaverse can be said to be successful.

19 Data are collected by the big companies to make profit in the Web 2. 0. Control over the data of users are given by the Blockchain. All sort of digital information can be stored in Blockchain. Blockchain is nothing but a Ledger technology that works under peer-to-peer network. The data stored in the Blockchain is not controlled by an individual controller. Instead, it is controlled by all users jointly. A lot of technologies such as the crypto currency, peer-to-peer networks are blended into the

Blockchain technologies. It is a platform that lets the users to store their data in a secured way as it is transparent and is tamper resistant. As Blockchain works on pseudonymous technology and not on anonymous technology, it lets the users to protect their identity. The main pillar of Metaverse can be said as Blockchain. More than the centralised infrastructure, blockchain is said to be safer platform. Many other aspects such as the cryptocurrency, NFT and smart contracts are allowed in the Blockchain technology. The interoperability of various Metaverse platforms is facilitated by the Blockchain. Without the centralised authority’s involvement Blockchain gives access to the Metaverse globally. Copyright infringement can be controlled if technologies such as the Blockchain rule over the Metaverse. Blockchain can solve problems which are created by various digital technologies.

18 BBC News, Facebook to hire 10,000 in EU to work on the Metaverse, BBC, 2021.

19 Guy Zyskind, Decentralising Privacy: Using Blockchain to protect personal data, 2015.

Conclusion: Who is going to own the Metaverse is still a matter of question. And how to define Metaverse is still a matter of debate. Two things are clear, despite the confusion in Metaverse. There are a lot of chances for Metaverse to become the truth, as it looks so realistic. 20 More issues relating to copyright law may arise in terms of Metaverse in the future. Various frameworks that are stringent enough are needed to guide the issues and confusion arise out of it. Metaverse id considered as an immersive internet, as it allows the users to utilize the online platforms with the help of headsets and other equipment where it has three-dimensional digital platform. In the Metaverse world the users are represented in the form of Avatars. There appears to be a thin faded line between the real world and the virtual reality. Things like this are possible in the future approach.

Before a proper legal regulation could be built, the Metaverse will start to evolve faster than that. Other challenges include framing a global framework as well. Without knowing the core of the Metaverse if we bring regulations, it will not bring in the needed results. The damages it causes cannot be reversed if the Metaverse goes out of hand and it will become hard to control. No matter how many technologies arise in this new era like that of the Metaverse, it must not bring in any changes to the existing copyright law. To address the issues and the confusion that arises in terms of Metaverse can be dealt by the Copyright principles. On the other hand, we must put the fact that copyright law is not advanced enough to look upon the challenges that arises out of new technologies.

All the challenges arise out of Metaverse cannot be dealt by the Copyright regime and all the problems in Metaverse has not found any relatable solutions. To create a talk about the potential problems, arise out of it, is the main motive. The privacy of the users may be affected in terms of Metaverse is still a matter of debate. There are more chances where metaverse can collect the data of the users by using the face expressions, their emotions, the moment of eye, body language etc. , Possession of such data is not available in the giant techno companies. In what ways the techno companies will analyse the users and use that information? There is answer to it, as it remains vague. Lawmakers must be known of all these issues before it gets into the hands of the big companies. Because, after

20 Nitin Kumar, Six Unaddressed legal concerns for the Metaverse, FORBES, 2022.

that the information of the users will remain with those companies and it becomes hard to get back. Metaverse can be used in many rightful ways instead of using it for exploitation.