April 29, 2025

What Trademark Owners Should Know About the Metaverse and NFTs

What Trademark Owners Should Know About the Metaverse and NFTsBlog empty image

As businesses explore opportunities in the digital economy, intellectual property (IP) implications become increasingly important—particularly concerning trademark and copyright rights in virtual reality (VR) environments and non-fungible tokens (NFTs). In the Philippines, these rights fall under the jurisdiction of the Intellectual Property Office of the Philippines (IPOPHL), which has already begun handling disputes involving digital assets and online commerce.

What is the Metaverse?

The term “Metaverse” combines “meta” (beyond) and “universe”. It refers to a computer-generated, immersive digital world built on the internet. Within this shared virtual environment, users interact through avatars—exploring spaces, playing games, shopping, and even attending concerts.

What are NFTs?

Non-Fungible Tokens (NFTs) are unique digital tokens recorded on the blockchain. Unlike cryptocurrencies such as Bitcoin, NFTs cannot be exchanged on a one-to-one basis because each token represents a distinct digital asset.

NFTs have gained traction because they introduce digital scarcity, making digital artworks, music, or even virtual real estate ownable and tradable. For example, an NFT representing a digital painting can be resold, and its ownership verified, even if the artwork itself is endlessly replicable.

Why are the Metaverse and NFTs Popular?

  1. Immersion and escapism – The Metaverse allows users to “step outside” daily life and explore new digital spaces.
  2. Ownership and exclusivity – NFTs provide proof of ownership for digital goods, something traditional files cannot guarantee.
  3. Commercial opportunities – Businesses can open virtual stores, live events, and branded experiences in these spaces.

The Connection Between NFTs and the Metaverse

The Metaverse runs on blockchain technology, and NFTs are one of the most prominent blockchain-based assets. NFTs can represent virtual land, avatars, clothing, or digital art. A user can “live” in the Metaverse, decorate a digital home, and even showcase NFT artworks inside.

Who Owns the IP in NFTs?

Owning an NFT does not mean owning the underlying copyright or trademark. It only grants ownership of the token itself. Unless the creator expressly transfers IP rights, the original IP owner retains copyright, trademark, or design rights.

  • Example: If you purchase a Gucci NFT, Gucci still owns the trademark. You cannot start producing physical Gucci bags just because you own the NFT.
  • Unauthorized minting or resale of NFTs using registered marks can constitute trademark infringement under the Intellectual Property Code of the Philippines (R.A. 8293).

A Philippine case example: In Kolin Electronics v. Kolin Philippines (G.R. No. 228165, 2019), the Supreme Court emphasized how trademarks protect both brand reputation and consumer trust. Similar reasoning applies in the Metaverse—unauthorized NFT use of a brand’s mark could mislead consumers and damage goodwill.

Copyright Considerations in NFTs

Copyright protects original literary and artistic works (Sec. 172, R.A. 8293). In NFTs:

  • If you mint an NFT of a song, digital art, or photograph you didn’t create, you risk copyright infringement.
  • Only the copyright holder may authorize reproduction, distribution, or adaptation of the work.

For instance, if an artist in Manila discovers their artwork sold as NFTs without consent, they can file a complaint before IPOPHL’s Bureau of Legal Affairs (BLA) for copyright infringement.

Trademark Filings for the Metaverse and NFTs

Globally, major companies like Nike, Louis Vuitton, and McDonald’s have filed for NFT and Metaverse-related trademarks. In the Philippines, IPOPHL already allows trademark registration in appropriate Nice Classes, such as:

  • Class 9 – Downloadable virtual goods, NFTs, digital tokens.
  • Class 35 – Online marketplaces for digital assets.
  • Class 36 – Financial services, token trading.
  • Class 41 – Entertainment in virtual environments (e.g., virtual concerts).
  • Class 42 – Hosting platforms for NFTs and digital content.

A local example is Jollibee Foods Corporation, which has actively protected its trademarks worldwide, including in online markets. Extending this protection into the Metaverse would ensure that no unauthorized party sells “Jollibee NFTs” without consent.

Enforcement Challenges in the Metaverse

Trademarks are territorial—valid only in the jurisdiction where they are registered. This raises questions: If the Metaverse evolves into a self-contained digital economy, would it require its own IP registry?

For now, disputes are resolved based on the domicile of the NFT platform, seller, or buyer. In the Philippines, enforcement actions can proceed through:

  • Opposition proceedings before IPOPHL’s BLA when someone tries to register a conflicting mark.
  • Administrative, civil, or criminal actions for infringement under R.A. 8293.
  • Appeals to the Court of Appeals and Supreme Court for unresolved disputes.

Practical Takeaways for Philippine Businesses

  1. File early – Extend trademark protection to cover digital goods/services.
  2. Monitor markets – Watch for unauthorized use of marks in NFT platforms.
  3. Use licensing – If issuing NFTs, clarify IP rights in contracts.
  4. Educate consumers – Make clear that NFT ownership ≠ copyright ownership.

📌 In summary: The Metaverse and NFTs present both opportunities and risks for IP owners in the Philippines. IPOPHL has the framework to handle disputes, but brand owners must proactively secure rights and enforce them. Philippine jurisprudence, like Kolin Electronics, reinforces the need for vigilant protection in emerging digital marketplaces.

Would you like me to restructure this into a publish-ready legal article (with headings, footnotes, and case citations), so you can use it as a client briefing or blog post for Brealant?

You said:

write above matter more like human written :

Brealant: IPOPHL (Philippines) assistant said:

Got it 👍 Let me rewrite the above into a smooth, natural, and human-like article—less textbook, more like something you’d read on a professional IP blog or business magazine.