How brand owners might achieve success in the virtual world through branding in the metaverse

The recent rebranding of Facebook to Meta has sparked a rise in interest in the “metaverse.” Although the definition of the metaverse is still evolving, it is widely believed to be a persistent virtual world in which people may connect with one another and, progressively with brands. For brand owners trying to maintain their relationship with customers in the digital reality, this new environment will present both challenges and opportunities.

For example, brand owners hoping to commercialize their trademarks in the metaverse may be likely to do this through virtual billboards, virtual sponsored events, and even virtual “shops” where customers may browse a brand owner’s virtual products. Furthermore, several brands are already interacting with customers in the metaverse through decentralized game apps and the sale of special virtual clothing lines utilizing Non-Fungible Token (“NFT”) technology.

The definition of metaverse

The term “metaverse” refers to a persistent virtual world, a “place” that exists alongside the real world and includes augmented reality, virtual reality, 3D holographic avatars, video, and other forms of communication, in which people can “live” and connect in real-time with others inside a virtual world.

With anything from concerts and conferences to virtual excursions around the world, the metaverse allows people to connect online for work, entertainment, and stay connected with friends, family, and colleagues.

The present state of brand engagement in the metaverse

Offering rare or “limited edition” digital copies of products through online games and digital marketplaces had been an early strategy for brand owners to reach consumers in the metaverse.

Brands have also begun cooperating with existing metaverse-like web platforms to produce original digital products, allowing them to reach a new generation of digitally savvy consumers.

Protecting and enforcing trademark rights in the metaverse

Well-executed metaverse marketing activities, such as the ones mentioned above, may enhance brand identification (especially among younger tech-savvy customers) and sales of both digital and IRL (in-real-life) products. Nevertheless, since more brands begin to provide trademarked digital products and services in the metaverse, trademark infringement and counterfeiting will undoubtedly arise. Because the precise form of infringement may be impossible to foresee, brand owners will need to get effective trademark protection that applies throughout the metaverse.

In the metaverse, brand owners who fail to protect their trademark rights for virtual products and services may find it difficult to prevent infringement and properly enforce their rights. Some perceptive brand owners have already taken measures by registering their trademarks for metaverse-related goods and services, such as available for download virtual goods for usage in online virtual environments, virtual goods retail storefronts, and digital collectable services.

Brand owners trying to connect with a new customer base and improve customer retention through digital and virtual products and services may experience both challenges and opportunities in the metaverse. As more brands begin to provide products and services in the metaverse, securing trademark protection for virtual goods and services will become increasingly essential to prevent eventual violation.