The metaverse is currently subject to a huge amount of debate and reflection among the gurus of the technology world. But these debates shine a light on many more questions than they do answers, including: will it be technologically feasible? how do companies and corporations even get into the metaverse? will it really be an extension of the real world, or just another space limited to leisure and entertainment? what gadgets will we need to buy to truly immerse ourselves in the metaverse? will they be within the financial reach of the average user? will the metaverse require advanced knowledge or will it be simple?

What’s more, many legal questions are also starting to crop up that, just like the questions above, need answering and will play a role in framing our impression of the metaverse of tomorrow. If we’re really talking about virtual reality forming an effective part of society that — at least in theory — runs parallel and independently to ‘real life’, we have to think about the rights, freedoms and responsibilities that will govern the metaverse. As well as the laws that need to respond to different contexts and realities. Some of these realities will mirror the conflicts of physical society, whereas others will be much more specific to digital environments, such as the metaverse.

Legal challenges in the metaverse

The main legal concerns of a virtual world like the metaverse have been a familiar part of the Internet for years now, given they cover some essential issues – digital identity, privacy and protecting personal data. How can we guarantee that every person and private or public entity is who they say they are in the metaverse? What personal or sensitive information will be circulating within the metaverse and how can we protect or limit it?

Current legislation aimed at protecting our personal data and guaranteeing our digital rights is still very recent, despite how long the Internet has been around, for example, Organic Law 3/2018 of 5 December in Spain. This is just one example of how complicated it can be to develop a body of regulations in law that covers all possible scenarios and protects the rights and freedoms of us all, alongside regulating certain obligations. There’s no specific legislation related to the metaverse yet, but a large part of any laws will have to include the precepts of the legislation already in place as a starting point. Others will have to be created expressly to cater to specific frameworks within the metaverse.

For example, who will rule the metaverse, and who will they be accountable to? Although the metaverse is the result of a private initiative – that is, a company with its own interests and ‘rules’ –, citizens of many different countries will operate within it, which all have their own rights and responsibilities. The only legal framework in place cannot simply be the one established by the terms and conditions users accept in order to access and operate within the metaverse. But will the national regulations of each user’s country apply? Will there be an international framework to turn to? The European Commission is currently working on two legislative proposals, one on digital services and the other to regulate virtual markets, although it seems like the scope of European legislation will have to be extended to governance and the rights and responsibilities of private citizens. Furthermore, the role of Decentralised Autonomous Organisations (DAOS) and use of smart contracts should be established.

What should brands pay attention to in the metaverse?

On the other hand, companies, brands and entities with a commercial focus also have certain important aspects to think about when it comes to the metaverse. Starting with the basics, such as guaranteeing and securing payments and transactions – from NFTs to cryptocurrencies – to protecting intellectual and industrial property rights. Not to mention employment rights.

Aside from users playing a passive role in the metaverse, will there be virtual workers? Will only artificial intelligence entities operate there? In the event of a conflict, will justice institutions be needed in the metaverse, or will any problems be resolved by the physical courts? We’ve already seen in the news how the courts still can’t consider evidence generated or extracted from the digital world as valid procedural material.

So, in short, we’re facing an ecosystem that is still uncertain and that will surely experience issues along the way. Although how we legislate the metaverse still needs some thinking about, it will certainly be based on regulations already in force and those that are being created to respond to all types of scenarios in our vast digital worlds.