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The term ‘metaverse’ is used to describe a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the internet. The term was coined by science fiction author Neal Stephenson in his 1992 novel Snow Crash, to describe a virtual reality space that is created by the convergence of virtually enhanced physical reality and the internet. In the metaverse, users can interact with each other and with virtual objects and environments in real time. The metaverse is often described as a virtual reality world that is accessible through the internet, where users can communicate, play games, and engage in a variety of other activities. Some people envision the metaverse as a virtual world that will eventually become a fully immersive and interactive experience, similar to the virtual reality depicted in science fiction movies and novels. 

In India, trade marks are governed by the Trade Marks Act, 1999 and the Trade Marks Rules, 2002. Under these laws, a trade mark is defined as "a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others." This includes any symbol, word, or combination of words that is used to identify and distinguish the goods or services of a person or business from those of others. As the metaverse continues to expand and gain popularity, it is important for companies and individuals to consider how they can protect their brand and intellectual property in this digital realm.

Metaverse and Indian Businesses:

Indian businesses have been quick to embrace the technology and establish a presence in the virtual world. In fact, several Indian IT companies have even created their own metaverses, offering innovative platforms that are uniquely Indian.

One such example is Infosys, a leading player in the information technology sector for over 40 years, which recently launched Metaverse Foundry to enhance "virtual-physical interconnections." The platform combines domain and design expertise, platforms, and digital accelerators with strong relationships in a "rich creator-partner economy." Other Indian businesses have also explored the use of non-fungible tokens (NFTs) in the metaverse. Mahindra and Mahindra launched NFTs themed on their iconic "Thar" vehicle, with proceeds from the collections being used to empower the girl child. Similarly, travel company Makemytrip launched virtual vacation NFTs valued at INR 14,999 (approximately USD 190). Jewelry brand Tanishq became the first Indian jewelry brand to enter the metaverse when it launched its "Romance of Polki" collection on April 7, 2022. The collection featured three-dimensional designs that were displayed to the general audience by scanning a QR code.

Trademark Registration:

The Metaverse, being a virtual space with a complex network of users and content, is susceptible to various forms of intellectual property infringement. This includes the sale of counterfeit artwork, patent infringement in hardware production, misappropriation of trade secrets, and the unauthorized use of trademarks. To mitigate these risks, many brands have implemented effective marketing and branding strategies to build brand loyalty within the Metaverse. Some examples of trademark registration within the Metaverse include Nike America's registration of "Nikeland" under virtual reality and interactive game services, and Gucci and Prada's registration of logos under “downloadable virtual goods and virtual clothing used in the virtual worlds.”

As the metaverse continues to grow, leading brands have entered the virtual market and sought trademark protection in India under Classes 9, 35, and 42 of the NICE Classification system. These classes cover a range of virtual goods and services, including downloadable virtual goods (Class 9), retail store services featuring virtual goods (Class 35), online non-downloadable virtual goods and non-fungible tokens (NFTs) (Class 42), and financial services for facilitating trade in the virtual marketplace (Class 36). Recent such trademark registrations under Class 9 includes WALMART, TOMMY JEANS, THAR, POLARITY, VOGUE, AJIO LUXE etc. It appears that a distinct category for "virtual goods" and "digital collectibles" has emerged within the trademark system, with companies filing applications under these classes to protect their intellectual property in the Metaverse.

Key Challenges:

The use of trade marks in the virtual universe, or metaverse, presents several challenges that must be considered. One of the main issues is the potential for trade mark infringement. In the physical world, it is relatively easy to identify trade mark infringement. In the Metaverse, however, it is much more difficult to identify trade mark infringement. Virtual goods & services can be easily copied and distributed, making it harder to track down the source of the infringement. Another challenge is the issue of jurisdiction. In the physical world, jurisdiction is generally determined by the location of the infringing party. In the Metaverse, however, it is much more difficult to determine where an infringement is taking place. This can make it difficult for trade mark owners to enforce their rights.

References:

https://www.mondaq.com/india/trademark/1228966/trade-marks-and-the-metaverse-recent-trends-in-india

https://www.mondaq.com/india/trademark/1219658/registration-of-trademarks-operating-in-the-metaverse

https://ssrana.in/articles/metaverse-explored-by-businesses-development-india/

https://www.legalserviceindia.com/legal/article-8472-protecting-trademarks-in-metaverse-is-trademark-regime-ready-for-internet-2-0-.html

https://nujsiplaw.wordpress.com/2022/04/04/trademark-infringement-in-the-metaverse-an-indian-perspective/

https://spicyip.com/2022/05/trademarks-and-the-metaverse-imaginary-rights-or-real-wrongs.html