Navigating the Metaverse Patent Regime

Navigating the Metaverse Patent Regime
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January 11, 2023
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Industrial Design

The Metaverse represents a frontier of possibilities, enabling the layering of digital experiences onto the physical world and the transference of real-world attributes into an entirely virtual domain. It combines immersion, real-time responsiveness, user control, interoperability across devices, and the simultaneous participation of vast numbers of people. As a shared, persistent environment built on augmented and virtual reality technologies, it blurs the lines between reality and simulation. Industries such as entertainment, gaming, education, fashion, and finance are expected to feel the earliest impact. Businesses are now aggressively exploring this space, protecting their innovations with patent filings. Signzy, an Indian fintech company, recently secured a U.S. patent for a novel system of customer onboarding within the Metaverse. A review of filings shows that numerous metaverse-related applications have already been made in prior months. This article examines the challenges of protecting such technologies through patents.

Hardware Innovations

In February 2022, Disney was granted a patent for a theme park system that merges physical and virtual experiences through simultaneous localization and mapping (SLAM). Using 3D projection imaging, it creates immersive holographic overlays of characters that interact with visitors in real-world spaces (US11210843B1). Both hardware and software are crucial to such developments. Within the Metaverse, patentable subject matter may include everything from VR headset functionality to algorithms for generating virtual environments through gestures or gaze tracking, as well as systems for shared viewing or avatar creation. With VR technology evolving at a rapid pace, distinguishing genuine novelty from incremental tweaks presents a significant challenge for patent examiners and courts alike. Many devices differ only marginally, making determinations of inventive step increasingly complex. Even so, subtle advances continue to support patentability, as seen in the growing volume of global filings.

The landscape is also shifting beyond entertainment. Medical training simulators, visualization of complex health data, and rehabilitation platforms demonstrate how practical applications are driving new hardware patents. Courts will likely need to determine whether an invention created for real-world use may also be extended into VR or AR contexts by competitors.

Software Protection

Unlike hardware, securing patent rights for metaverse-related software remains more difficult. Eligibility hurdles often arise where inventions are deemed abstract processes implemented on computers. Courts and examiners ask whether a digital process in the Metaverse is truly distinct from its offline counterpart. This standard, affirmed in Alice Corp. v. CLS Bank, continues to influence examination. Applicants may face obstacles if their claims differ from prior art only in that they are limited to the Metaverse.

In the United States, the 2019 Patent Eligibility Guidance broadened interpretations of “abstract ideas,” including human activity, mental processes, and mathematical formulas, slightly easing the path for innovators. By contrast, the European Patent Office has underscored in decision G1/19 that simulation-related inventions remain challenging to protect.

Design Rights

Design protection extends to the aesthetic aspects of metaverse creations. In North America, design patents are available, while Europe and many other regions rely on registration systems. Companies entering virtual marketplaces are expected to guard ornamental designs for digital goods and experiences. Guidance issued in December 2020 clarified that computer-generated icons, holograms, and VR/AR projections may qualify as protectable designs if they meet statutory requirements.

Fashion has already embraced the Metaverse. Virtual Fashion Weeks, such as the first event in March 2022, highlight unresolved legal issues. Questions remain as to what constitutes “first publication” when designs appear simultaneously online and offline — an issue courts must now address.

Looking Forward

Traditional patent frameworks were not designed with hybrid digital-physical realities in mind. The Metaverse, much like blockchain and artificial intelligence, compels legal systems to adapt. The coming years will require patent practitioners and examiners to refine approaches, ensuring intellectual property law remains dynamic enough to encompass immersive technologies. The evolution of patents in this space will depend on balancing innovation with clarity, preserving protection while accommodating rapid technological change.