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Metaverse Lawyer

Welcome to Attorney Steve® Metaverse Legal Resource Center - Cryptocurrency, Blockchain, Web 3.0, NFT, Digital Assets [Entertainment and IP Law Firm]

digital assets in metaverse

Introduction

Since 2004, we have been helping business owners, creative artists, fashion designers, photographers, and others protect and enforce their intellectual property.  Enter now "THE METAVERSE."  This is an exciting new technology that is part of Web 3.0 as it is called which will focus on the following:

  1.  Increased use and adoption of cryptocurrency to pay for things and to buy and sell the currency (such as Bitcoin, Dogecoin, Eth coin, and others)
  2.  Increased use and adoption of NFT (non-fungible tokens) - things such as digital art and photography that are sold for profit
  3.  Growth of recordation of transactions on blockchain technology, which is a digital ledger that records the history of transactions
  4.  Growth of immersive technology on the metaverse and the use of virtual technology and augmented reality
  5. Growth of companies expanding their digital branding presence including the potential to buy digital real estate assets on sites such as Superworld, Decentraland, the Sandbox, and others
  6. The use of "billboards" in the metaverse and the potential buying, selling, and leasing of digital real estate
  7. The growth of the sale of digital assets such as characters and avatars

At the same time, in July of 2023, we will see the opening of the new "Copyright Claims Board" in Washington D.C. located at the copyright office, and small claims for copyright infringement being brought for UP TO $30,000 for aggregate infringements.  

This promises to be an exciting time for digital architects, photographs, film and video producers, fine art producers, and others and will raise familiar, yet likely novel issues of technology law that we are prepared and equipped to confront.

What is Web 3.0 simply explained

A look at the major Metaverse platforms

Here are some of the major developing platforms.  Many are based on the Etherium blockchain:

    • Cryptovoxels (or “Voxels”)
    • Decentraland
    • Epic Games
    • Nakamoto
    • Roblox
    • The Sandbox
    • Star Atlas
    • Blocktopia
    • Hyperverse
    • Metahero

If a dispute arises with any of these companies, many of these entities will have arbitration clauses or other required dispute resolution processes.  Whether or not the online contract or terms of use are enforceable can depend on a few things.  Here is one case worth looking at to determine the standard California courts may apply to determine if there is a valid enforceable agreement.  In In Doe v. Roblox Corp., 602 F. Supp. 3d 1243, 1256-1257 the California court held:

Whether Doe is bound by the Terms of Use is a question of state law; both parties rely on cases applying California law and I follow suit. The Ninth Circuit has, several times, addressed how to determine whether a valid internet contract was formed under California law in circumstances like these. See Berman v. Freedom Fin. Network, LLC, 30 F.4th 849 (9th Cir. 2022); Nguyen v. Barnes & Noble Inc., 763 F.3d 1171 (9th Cir. 2014). The alleged agreement that Roblox puts forward here is what courts have often called a "sign-in wrap" agreement—an agreement in which an internet user's assent is allegedly shown by clicking a button to sign up for a service accompanied by a message that, by doing so, the user is agreeing to terms of use. See, e.g., Meyer v. Uber Techs., Inc., 868 F.3d 66, 75-76 (2d Cir. 2017) (collecting cases).

Under California law, a valid contract requires the "mutual consent of the parties," [**12]  which is "generally achieved through the process of offer and acceptance." DeLeon v. Verizon Wireless, LLC, 207 Cal. App. 4th 800, 813, 143 Cal. Rptr. 3d 810 (2012) (internal citations omitted). This "mutual consent" is "determined under an objective standard applied to the outward manifestations or expressions of the parties, i.e., the reasonable meaning of their words and acts, and not their unexpressed intentions or understandings." Id. Accordingly, even if an offeree does not know all of the terms of an offer, he "may be held to have accepted, by his conduct, whatever terms the offer contains" so long as there was a sufficient "outward manifestation or expression of assent." Windsor Mills, Inc. v. Collins & Aikman Corp., 25 Cal. App. 3d 987, 992, 101 Cal. Rptr. 347 (1972). But "when the offeree does not know that a proposal has been made to him this objective standard does not apply. Hence, an offeree, regardless of apparent manifestation of his consent, is not bound by inconspicuous contractual provisions of which he was unaware, contained in a document whose contractual nature is not obvious." Id. at 993 (internal citations omitted).

In these particular circumstances, and at this procedural posture, I conclude that Roblox has not met its burden to show that Doe assented to the Terms of Use.

Neither party has found a case that addresses this situation, but usual principles of contract formation support Doe's position. The law has long recognized that children have less capacity than adults to assent to contractual terms. See, e.g., Ballard v. Anderson, 4 Cal. 3d 873, 878, 95 Cal. Rptr. 1, 484 P.2d 1345 (1971).  Indeed, California law (like the common law) permits minors to disaffirm most contracts, rendering them void. Cal. Fam. Code § 6710.8 California "law shields minors from their lack of judgment and experience." Berg v. Traylor, 148 Cal. App. 4th 809, 818, 56 Cal. Rptr. 3d 140 (2007) (internal quotation marks and citation omitted). It is important for contract law to "protect a minor against himself and his indiscretions and immaturity as well as against the machinations of other people." Id. (internal quotation marks and citation omitted).

When it comes to contract formation or interpretation, courts often take into account particular features of individuals doing the contracting. Courts will often, for instance, consider whether a party is legally sophisticated or not. See, e.g., Meadows v. Dickey's Barbecue Restaurants Inc., 144 F. Supp. 3d 1069, 1078 (N.D. Cal. 2015).  Or courts consider whether individuals were impaired or intoxicated, even if they gave manifestations of assent, because those manifestations would be less objectively reasonable. See, e.g., Restatement (Second) of Contracts § 12. Here, both putative contracting parties were aware that Doe was a minor; in light of that fact, it is unreasonable to conclude that she manifested objective assent to be bound.

Why I believe the Metaverse is the future of retail, learning, and social

Let's face the facts, kids are the future, and kids are growing up with technology.  Whether it be gaming, social apps, mobile applications, metaverse, NFT these technologies may be foreign to those over 60 (which I have typically found to be the case, but the younger generation is virtually "LIVING" in online environments like TikTok, Facebook, Instagram, Reddit not to mention the entire gaming universe created by the likes of Microsoft and Sony.  Since we already know a ton of time is spent in the "digital world" (perhaps because it is a more enjoyable place than the "real world") we know this is only going to GROW and not SHRINK.  In fact, a good part of the world is not even "online" yet - but we know they will be.   Some of the great applications for the Metaverse I see are the following (but this is NY no means an exclusive list):

1.   Home-schooling that involves the internet and metaverse as a tool for learning

2.  When you get a speeding ticket or DUI - take your driver's school in the metaverse (heck, you could take your test there as well)

3.  Government services could be provided there (better than sitting in a packed lobby waiting for your number to be called - think about it)

4.  Online dispute resolution.  Who needs to go to court.  Have your online and offline disputes settled online in "Virtual Court

5.  Buy your groceries online.  If you can walk into a digital supermarket and "shop" for your groceries, and then press "DELIVER" would that work for you?  It would work for me.  The same goes for any retail items such as shoes, sporting goods, apparel, electronics, furniture - really, anything.

6.  Online training from master teachers - imagine being able to walk into virtual seminars where you can plop down some crypto and attend a learning session (and even get MCLA credit or certifications) via the Metaverse.  Walk into a new room when you are done with your class.  Shorter classes will be best given most people have short attention spans.

7.  What about taking in a PPV event (boxing matches or one-on-one basketball games, or watching a golf match).  Literally, anything you see online now in the form of digital content, or videos, can all be placed in the Metaverse.  

8.  Don't forget you can cruise around while listening to your favorite music or podcasts

9.  Attend a car or fine art auction. Did you know Sotheby's is already in the metaverse?  This should make you think.

10.  Online dating could be interesting.  You can talk to people, hear their voices, and view their profiles.  There is no limit to where this could go.

These are just the first 10 metaverse ideas that came to my mind.  From my end, as an IP and technology lawyer, I am fascinated by this new technology and all the applications (ex. some people are buying land in Superworld, Decentraland or the Sandbox)

metaverse lawyers standing

If you need a Metaverse, Technology, NFT, or IP law firm, call us for more information at (877) 276-5084 or fill out the contact form.

What is Superworld?

For the first time in human history, you can now purchase "digital real estate" in the Metaverse.  Three of the top places you can do this are Superworld, Decentraland, and The Sandbox.  This may raise novel legal issues such as "digital trespass," "digital easements" (ex. view easements), smart contracts, buying and selling digital billboard space, and even "digital evictions."  For an introductory look at this new technology watch this video.

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digital mountain

Who can we help?

We can help creatives in NFT and copyright-related legal issues, including startup legal advice.  Contact us if you need legal counsel:

  • Digital designers
  • Digital architects
  • Graphic designers
  • Film and video producers
  • Musicians and bands
  • Drone videographers
  • Game developers
  • Software designers and developers
  • Metaverse real estate developers
  • Avatar creators
  • NFT creators and designers
  • DAO voting disputes
  • Online education providers
  • Animators
  • Software coders
  • Character developers
  • Metaverse entrepreneurs and startups
  • Background music infringement and fair use cases
  • Digital art designers
  • Billboard brokers in the metaverse
  • Digital evictions (landlord/tenant law in the metaverse)
  • Others

We can help protect and enforce your IP in the realm of the metaverse.

Attorney Steve® Explains Metaverse Decentralized Domains

We are moving into a new fork with domain names. Introducing "metaverse decentralized domains" which can be used to point (shortcut) to NFT, crypto, blockchain, and web3 properties).  Some examples of this include:

.nft

.crypto

.blockchain

.eth

.crypto

Brand owners need to be aware of "meta-squatters" and others out there in the digital universe who may try to imitate a brand (i.e. phishing websites) or tarnish their reputations without the company knowing about it.  More importantly, if your business plans to accept cryptocurrency (i.e. virtual currency in the future), whether as payment for services or crypto games or in other forms, it is important to either secure your rights to prevent future abuse, or to monitor online marketplaces such as OpenSea.io and make sure no one is abusing your brand.  We can help if you need a trademark lawyer to stop infringers, diluters, fakes, imposters, and those who tarnish your good name.

What rights do you get when you purchase an NFT (hint, you do not become the copyright owner)?

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Legal Services

The following are typical legal services we are able to provide

  • Corporate formation
  • Non-disclosure agreements
  • Copyright and fair use review and opinion letters
  • Trademark and domain issues
  • Cease and desist letters
  • Digital real estate disputes
  • Decentraland arbitration
  • Digital land agreements
  • IP infringement representation and defense
  • Mediation of disputes
  • DMCA notifications, counter-notifications, and 512(f) bad faith takedowns
  • Copyright small claims cases
  • Counterfeit art
  • Cryptocurrency disputes 
  • DAO disputes
  • Character licensing
  • Influencer and Celebrity endorsement agreements
  • Billboard disputes
  • Peer-to-peer (p2p) legal issues
  • BitTorrent related issues
  • DMCA section 1201 anti-circumvention claims
  • Entertainment law contracts

If your issue is DIGITAL in nature and or has legal issues involving the internet and social media law, entertainment law, or involves intellectual property call us at the number below.  We have been helping clients succeed since 2004.

MetaRape?  Listen to this episode of the Vondran Legal Hour podcast discussing whether there are any laws to combat sexual assault in the METAVERSE

Contact a Metaverse and NFT Copyright Attorney

If you are launching a new product, dealing with a copyright infringement demand letter or lawsuit, or a trademark legal issue, we can help both Rights Holders and those being accused of infringement or unlawful business practices and can help NFT and Metaverse Startups in this new and quickly developing space.

We can be reached at (877) 276-5084 or fill out our contact form and we will contact you.  We have litigated over 300 cases in both State and Federal courts since our founding in 2004.

Contact us for an initial consultation!

For more information, or to discuss your case or our experience and qualifications please contact us at (877) 276-5084. Please note that our firm does not represent you unless and until a written retainer agreement is signed, and any applicable legal fees are paid. All initial conversations are general in nature. Free consultations are limited to time and availability of counsel and will depend on the type of case you are calling about (no free consultations for other lawyers). All users and potential clients are bound by our Terms of Use Policies. We look forward to working with you!
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