The Rise of NFT and Metaverse Trademark Filings: What Businesses Need to Know

As virtual goods, blockchain-based assets, and immersive online environments become increasingly mainstream, the world of trademark law is rapidly expanding to accommodate them. Businesses entering the NFT and metaverse space are finding that traditional intellectual property principles still apply, but in novel and evolving ways. Trademark filings related to non-fungible tokens (NFTs), virtual goods, and metaverse platforms have surged, prompting both opportunities and legal uncertainties.

Why Trademark Protection Matters in the Virtual World

In virtual environments like gaming, digital marketplaces, and immersive VR platforms like the Metaverse, brands are playing an increasingly important role. A recognizable logo or product design can have just as much value in the metaverse as in a brick-and-mortar store. In these ever-increasing and popular digital environments, companies are faced with new arenas and ways to protect their trademarks in connection with digital goods and services. For instance, companies now must prevent misuse of their brand in virtual worlds or NFT marketplaces as they seek to secure early positioning in a potentially transformative new digital marketplace.

Given the low barriers to entry in the digital space, bad actors can easily mint NFTs or create digital products using a recognizable brand name or logo. Without clear trademark protection, enforcement becomes significantly more difficult.

Key Developments in Trademark Filings

Over the past two years, the U.S. Patent and Trademark Office (USPTO) has seen a marked increase in filings that include goods and services related to:

• Downloadable virtual goods authenticated by NFTs (e.g., digital art, apparel, collectibles)
• Retail store services featuring virtual goods for use in virtual environments, and
• Entertainment services involving virtual performances, experiences, or online communities

Major brands like Nike, Gucci, and McDonald’s have filed metaverse-related trademarks to protect their IP in this space. Even smaller businesses are recognizing the value of preemptively securing rights before entering the virtual marketplace.

Legal Uncertainties and Emerging Issues

Despite this growth, many legal questions remain unresolved. For example, are existing trademarks sufficient to protect digital versions of goods? In many cases, companies are opting to file new applications specifically covering virtual goods or services.

Moreover, what constitutes trademark use in the metaverse? Courts and the USPTO will likely need to clarify what qualifies as “use in commerce” for purely digital goods.

And how does a company even enforce its rights across platforms and jurisdictions? Because NFTs are sold on decentralized platforms, and metaverse environments often cross international boundaries, traditional enforcement mechanisms may prove challenging.

Until these questions are resolved, trademark strategy in this area requires a forward-thinking, adaptable approach.

Practical Steps for Businesses

If your business is entering the NFT or metaverse space—or even if it simply wants to prevent others from using your brand in these new environments—consider the following:

• Audit your current trademark portfolio to identify gaps in coverage for digital goods and services.
• File updated or new trademark applications to explicitly include virtual and NFT-related classes of goods/services.
• Monitor NFT platforms and metaverse environments for potential misuse or infringement of your marks.
• Act proactively through licensing agreements, terms of service, and usage guidelines that apply to virtual environments.

Trademark law is expanding to meet the needs of a digital-first economy, and the growth of NFTs and the metaverse presents both opportunities and legal challenges. By taking proactive steps now, businesses can secure their brand’s position in these rapidly developing spaces and avoid costly disputes down the road.