While much of the public discourse today revolves around “AI” — a term often misapplied to describe what are essentially large-scale statistical language models — another transformative digital paradigm quietly continues its evolution: the Metaverse. Contrary to recent claims of its demise, the Metaverse is neither obsolete nor irrelevant. On the contrary, it holds the potential to fundamentally reshape how we experience, structure, and regulate digital interaction.
As a German attorney specialized in IT law, I continue to explore the legal ramifications of the Metaverse — and have recently published a detailed article in AnwZert ITR 25/2024 Anm. 2 addressing the regulatory uncertainties and legal innovations this virtual space demands. The future may well be built not on isolated “intelligent” tools, but in persistent, immersive environments where identity, ownership, and agency are redefined. Legal structures must keep pace.
Why Legal Questions Around the Metaverse Matter
Far from being a passing trend, the Metaverse is a logical extension of decades of digital convergence — from the gamification of social spaces to the integration of blockchain and immersive 3D interaction. It’s a socio-technical space in which real legal challenges arise, cutting across intellectual property, data protection, contract law, and even labor and employment regimes.
The legal literature now reflects this complexity. Recent contributions in the GRUR-Prax series and other scholarly publications highlight the need to confront core doctrinal questions in a virtual environment that lacks clear geographical, jurisdictional, or even ontological boundaries.
Intellectual Property in the Metaverse: Old Norms, New Terrains
One of the most pressing legal fields impacted by the Metaverse is intellectual property law. Copyright, trademark, and design rights are being tested in unprecedented ways.
In copyright law, questions of authorship and originality intersect with decentralized technologies like NFTs and DAOs. Avatars, virtual environments, and user-generated content all qualify — or may qualify — as copyrightable works, depending on their originality and the creative process involved. Yet enforcement remains fraught. The decentralized nature of many platforms and the cross-border accessibility of content often render traditional enforcement mechanisms impractical or ineffective.
Trademark law, likewise, faces a conceptual stress test. The use of real-world brands within virtual environments raises questions about genuine use and likelihood of confusion. The European Union Intellectual Property Office (EUIPO) has begun addressing these challenges by refining classification guidelines for virtual goods and NFTs, but the risk of parallel “metaverse squatting” — unauthorized use of brands in digital form — remains high.
These challenges are not theoretical. Fashion brands, luxury goods companies, and even sports franchises are already filing metaverse-specific trademarks to protect their digital assets and virtual merchandising strategies.
Data Protection: A Regulatory Core in the Virtual Realm
The immersive nature of the Metaverse makes it a particularly sensitive space for data protection. From biometric feedback gathered through VR devices to behavioral tracking across virtual platforms, the scale and sensitivity of personal data processing are immense.
European data protection law, grounded in the GDPR, applies in principle to Metaverse platforms, but enforcement remains challenging. The very structure of many metaverses — often owned by non-EU entities, powered by DAOs or decentralized storage — makes attribution of responsibility and data subject rights complex. As avatars act as proxies for real individuals, new regulatory frameworks may need to be devised to secure informational self-determination in a fully embodied digital environment.
Employment Law: Labor Rights in the Virtual Workspace
The Metaverse also affects employment law in practical and speculative ways. On the one hand, virtual workspaces and remote collaboration environments are becoming more immersive. On the other hand, the very idea of “working in the Metaverse” — whether through avatar representation, gig-style microservices, or digital labor in gamified economies — poses serious challenges for employment classification, working time, and occupational safety.
German labor law, for example, already grapples with how virtual work interfaces with health regulations, co-determination rights, and employer surveillance obligations. These legal tensions are only beginning to surface — yet they will become foundational in a post-digital labor market.
Towards a Jurisprudence of the Virtual
The law’s interaction with the Metaverse will not be resolved through analogies alone. While it is tempting to apply existing doctrines to new digital facts, many of these comparisons fall short. A trademark used on a physical garment is not the same as one displayed on an avatar’s clothing in a 3D world — legally or perceptually. Similarly, consent in a virtual contract scenario may involve automated agents or non-human participants, raising fundamental issues of agency and intention.
We need a jurisprudence that understands code as architecture, that treats virtual presence as a legally meaningful construct, and that prepares for a future where legal subjectivity may extend beyond human actors.
While everyone is watching AI with bated breath, a valuable niche is quietly taking shape — one that offers far more regulatory clarity than the current hype suggests. The legal contours of the Metaverse are already more defined than many realize, especially compared to the fog surrounding AI governance. That makes now the perfect time to build robust, legally sound solutions for immersive digital environments. Those who act early can help shape the rules of engagement — not just follow them.
A Legal Practitioner’s Commitment
This is precisely why I remain committed to researching, writing, and advising on the law of the Metaverse. The normative vacuum we face is not a barrier but an invitation. We are not simply reacting to technology, but actively shaping the conditions under which digital futures become lawful, fair, and sustainable.
In doing so, we must resist the distraction of short-term hype. Generative AI is important — but it is not the only game in town. The Metaverse is still unfolding. And law will be one of its defining dimensions.
Our law firm specialises in criminal defence, white-collar crime and IT law / technology law. Note our activity in digital evidence in IT security and software law.
- Understanding cyber diplomacy as a strategic necessity - 19. June 2025
- Israel and Iran: Cyber Espionage, Cyber Warfare and Cyber Defense in Comparison - 19. June 2025
- Israel: Cyber Espionage, Cyber Warfare and Cybersecurity - 19. June 2025