The digital age, characterised by the rise of the metaverse, requires a re-evaluation of intellectual property (IP) protection strategies. The recent adoption by the European Parliament of two key pieces of legislation, the Community Design Regulation and the Design Directive, together with the European Commission's Recommendation on Combating Counterfeiting, mark a significant step towards adapting the EU's IP framework to the needs of the digital age. This article examines these developments and their implications for IP rights in the metaverse.

The Design Package: A modern approach to IP in the digital age

On 14 March 2014, the European Parliament adopted two key proposals aimed at revolutionising the EU design protection system. The amendments to the Community Design Regulation (EC) No 6/2002 and the recast of Directive 98/71/EC (the Design Directive) aim to make the design protection system in the EU more accessible, efficient and adapted to digital developments.

Key aspects of this legislation include the introduction of new digital design types, such as those enabled by 3D printing technologies, and reforms to make application and registration procedures faster, cheaper, and more predictable. This legislative package now awaits adoption by the Council and subsequent publication in the Official Journal (OJ), signalling a major step forward for individual designers, SMEs and design-intensive industries seeking IP protection in the EU.

The Design Package's recognition of digital products, including those enabled by 3D printing and other digital design technologies, is particularly relevant for the Metaverse. This acknowledgment ensures that virtual goods—from fashion items worn by avatars to furniture in virtual homes—receive protection akin to their physical counterparts. This move not only encourages creative endeavors within the Metaverse but also protects the economic interests of designers who venture into these new digital frontiers.

Moreover, the inclusion of "movements, transitions, or any other sort of animation" under the protection of design rights directly impacts the dynamic nature of virtual worlds. In environments where user interaction and experience are predominantly visual and animated, safeguarding these elements becomes essential. This approach ensures that creators can innovate confidently, knowing their contributions to the virtual experience are protected.

The Commission Recommendation on the fight against counterfeiting

On 19 March, the European Commission adopted a comprehensive recommendation to improve the enforcement of intellectual property rights and combat counterfeiting. This initiative, known as the EU Anti-Counterfeiting Toolbox, underlines the importance of cooperation between right holders, service providers and law enforcement. It proposes strategic actions and specific tools to strengthen businesses' ability to protect their intangible assets, including measures against cyber theft.

Key actions include

• Designating single points of contact for IP enforcement matters.
• Encouraging participation in the modernisation of the Memorandum of Understanding on the sale of counterfeit goods on the Internet.
• Adapting enforcement procedures to address new counterfeiting practices, such as mirror sites.
• Promote alternative dispute resolution for IP disputes.
• Encouraging a re-evaluation and possible strengthening of sanctions for serious criminal IP offences.
• The Commission also outlines specific tools to help SMEs, including the SME Fund IP enforcement voucher, a toolkit to prevent cyber theft and a checklist for using AI without compromising intangible assets.

Chapter 4 of the recommendation discusses adapting IP practices to new technologies and combating IP infringement in virtual environments. It encourages stakeholders across the EU to use advanced tracking systems, including blockchain, to improve traceability and compliance. Advanced methods such as data analytics, automated detection and machine learning are recommended to detect counterfeit goods online. Member States are urged to use AI to improve IP application processes and enforcement against counterfeiting. Compliance with legal standards, including privacy and data protection, is emphasised. The chapter also highlights the importance of raising awareness among SMEs and the public about these technologies and their applications in protecting IP rights. It also addresses the need for dialogue on the protection of IP rights in virtual worlds and the implications of the use of NFTs and advocates collaborative efforts to harness new technologies for IP enforcement and respect.

The Commission, in cooperation with the EU Intellectual Property Office (EUIPO), will monitor the implementation and impact of this Recommendation. An evaluation within three years will determine the need for further action at EU level, considering technological advances and the impact of the Digital Services Act and other relevant legislation on IP enforcement.

Conclusion

The Metaverse, a network of 3D virtual worlds focused on social connection, is rapidly evolving beyond a concept into a platform for unprecedented digital interaction and commerce. As these virtual environments become increasingly sophisticated, the traditional boundaries of intellectual property face new challenges. The recent legislative and policy updates are crucial for adapting IP frameworks to the intricacies of digital realms where the lines between the physical and virtual blur.