The number of trademarks filed regarding the metaverse were at a peak at the beginning of the year. However, more recently the number of trademark applications regarding anything ‘metaverse’ has begun to drop.
In a report from Adweek, details regarding trademark applications were highlighted. This data showed that between January and October 2022, approximately 5000 US trademark applications for the metaverse and virtual goods were filed. These included some big-name brands such as Versace and Adidas. In March the number then peaked at a total of 773, but by October had dropped to less than half – 334 – a significant decline.
Trademark attorney and founder of law firm Gerben Perrott, PLLC, Josh Gerben noted that “The gold rush era of Web3 is over. The folks that are going to file trademark applications going forward are likely going to be the companies doing serious work in the space. The speculators are likely spending less and have fewer resources now than they did earlier this year.”
Securing your assets
The idea of the metaverse has seen new fuel heaped on board through recent years with many companies jumping aboard the virtual train. However as things settle and the realities of what’s possible and who’ll want it comes to bear, it’s only natural to see some lose interest in the market.
Despite this, large brands will still want to secure their IP because while protecting your assets in the virtual world is not too dissimilar to protecting them in the real one, it does pose its own problems. Trademarks for the virtual world mean that brands have far greater protection if someone were to come along and attempt to replicate their product or monetise it.
CEO of GK Digital Ventures Greg Kahn expressed the importance of trademarks saying, “By filing trademarks, [companies] have more authority to monitor brand activity and protect against digital look-alikes. Companies should prepare for Web3 by conducting an audit of all their current trademark portfolios. They should ensure that they file any new applications that will cover new classes of goods or services that could become possible in metaverse or Web3 environments.”
Grab now, answer questions later
Even if a brand isn’t prepared to enter the metaverse now, it may decide to in the future as the space continues to develop. In the long run filing for a trademark could prove more beneficial than risking a legal battle over representation rights. To file for a trademark in the metaverse could cost anywhere between $5000 to $10,000 which sounds like a hefty price to pay but for companies that are worth millions or even billions, it’s a small price to pay to secure a brand digitally, potentially, forever.
Paige Cook is a writer with a multi-media background. She has experience covering video games and technology and also has freelance experience in video editing, graphic design, and photography. Paige is a massive fan of the movie industry and loves a good TV show, if she is not watching something interesting then she's probably playing video games or buried in a good book. Her latest addiction is virtual photography and currently spends far too much time taking pretty pictures in games rather than actually finishing them.
