From fiction to reality!
We are hearing more and more about a new world where our physical and digital lives will converge. Large economic interests are immersed in the world called Metaverse which promises to generate a solid economy that will encompass new forms of entertainment, commerce, health, education, and work.
But what exactly is the Metaverse? Well, It is risky to provide an exact definition which fully encompasses its meaning. If we go back to the early stages of the Internet, no one would have been able to accurately measure its meaning as we understand it today. What we can say is that new technologies are being born and along with them, a new world of rights to observe and protect.
Leading companies are claiming their presence in the Metaverse as it is now very attractive to become pioneers in this new digital space. Brands like Burberry, Gucci, Nike, Ralph Lauren, H&M, just to name a few, are already present in the different Metaverses organizing runways, presenting their new collections, selling clothing, shoes, sunglasses, and other items for avatars. Recently, Dolce & Gabbana set a record by selling a collection of NFT (Non-Fungible Token) for almost 6 million dollars. Leading companies in real estate and events organization, such as concerts, festivals, soccer games, and basketball, are also already offering their services inside the Metaverses, therefore one of the many questions arising are: Where are these services classified in the international classification of Nice? Will the physical form of the products and services be enough to protect them in the digital world? Or will there be another classification for virtual products and services?
In terms of copyright law, new technologies are not staying far behind. In 2021, the prestigious Christie’s auction house sold an NFT by digital artist Beeple for $69 million. For authors and owners of property rights, these new technologies are bringing great advantages to the real world, since it will be possible to guarantee the authenticity of the work and be easier to have a better traceability of the author and the work at the time of resale (droit de suite). The collection of simple remuneration rights by the author will be carried out in a more transparent manner. But one of the many questions that arises is: how will the transfer of property rights be carried out? Well, we must not forget that the Mexican Federal Copyright Law does not recognize the assignment of rights as a definitive act, but rather it specifies that it must be temporary, returning the rights to the author in order to be legally valid. Thus, will the NFTS acquired have a validity period? Doesn’t this somehow contradict the intrinsic meaning of the word NFT? We will have to closely monitor how the Mexican authorities start interpreting and resolving these issues.
Our commitment at Solórzano Linaldi (SL) is and will always be, to be guarantors of protection for our clients, legally advising them in a timely and effective manner in the real world and, also in the so-called Metaverses.
If you need additional information regarding the contents of this document or if you need legal advisory, please contact the following persons:
Guillermo Solórzano Leiro – Partner
Phone: +52 55 50620057
Miriam Orozco Soria – Associate
Phone: +52 55 50620063