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From the dot-com era, to social media and mobile, forward-looking brands have sought to stay ahead of the curve and equip themselves for success in the next Internet age. Today, that means readying for the "metaverse" — a still largely undefined virtual environment where users (and brands) can interact with each other across immersive platforms and move seamlessly from one activity to another. Well-known brand owners are taking strikingly different approaches to this new environment — some jumping in and acquiring virtual real estate or partnering with avant-garde creators and platforms; some participating tepidly with limited releases; and others not participating at all. While it is still unknown how the metaverse will take shape lawyers advising brands should familiarize themselves with the opportunities it presents, the risks involved, and strategies to consider for enhancing and protecting a client's brand.
The metaverse presents brands with an opportunity to reach a new audience, particularly in the realm of gaming — currently the most developed incarnation of virtual worlds. Tens of millions of (mostly young) active users engage regularly on platforms such as Roblox, Decentraland and Fortnite, spending countless hours in online environments that feature limitless opportunities for brand penetration beyond traditional gameplay. These platforms include concerts, fashion shows, e-sports events, and other social and entertainment experiences. As with billboards and real-world event sponsorship, brands can reach new consumers and enhance their relevance among a younger demographic by purchasing valuable real estate and lending their names to these events or even creating their own.
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