The ambitions, patents, and inevitable risks of the Metaverse

Exploring the Metaverse Aspirations, Patents, and the Inevitable Risks

Author: Shi Yuan; Source: IPRdaily Chinese Website

What is the Metaverse? Mentioning it, some people will think of Neal Stephenson’s novel “Snow Crash”, and some people will think of Spielberg’s movie “Ready Player One”.

In 2021, Facebook founder Mark Zuckerberg renamed “Facebook” to Meta and announced a comprehensive entry into the metaverse. The heat of the metaverse was pushed to a climax. Now, Meta’s investor Brad Gerstner says, “The public is confused about the exact meaning of the metaverse concept.” In fact, we can roughly explain the origin and theory of the metaverse, and even know some hot events like the back of our hand, but what can it really bring us? No one has the answer.

It is undeniable that in the time when the metaverse is rising, industries that are based on immersive computing, Web 3.0, and new infrastructure technologies are taking advantage of the trend, continuously outputting patents to help clarify the concept of the metaverse, and there is a constant stream of related policy construction for the metaverse. Although the inevitable intellectual property rights war cannot be avoided in the metaverse. But we can believe that the metaverse will definitely have broad prospects and potential for development in the future.

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LianGuaiRT 01 The ambition of the metaverse hides in diversified applications

Although the development of the metaverse is still in its early stages, in the innovative wave of promoting technology and pragmatism, the metaverse has many positive landing scenarios in different industries such as industrial production, healthcare, finance, banking, and entertainment education.

1.1 Industrial Metaverse

In fact, many domestic and foreign companies have actively tried to use metaverse technology to reduce costs and increase efficiency. Midea Group fully utilizes simulation systems and digital twin technology to build a one-to-one virtual digital factory. With this system, they can simulate the production process in a virtual environment, greatly improving the efficiency of new product trial production and shortening the time to market. Microsoft has also established an “Industrial Metaverse Core Team” to provide power industrial control systems for applications such as industrial robots. This move by Microsoft injects new technological vitality into the industrial metaverse. In addition, BMW actively uses the virtual collaboration platform Omniverse to plan the construction of virtual factories, bringing greater economic benefits to enterprises.

1.2 Healthcare Metaverse

When “health preservation” becomes a topic of conversation after a meal, the metaverse decodes the infinite possibilities of health and medical care. The United Arab Emirates National Health Service has opened a new chapter in the healthcare metaverse and established the world’s first metaverse healthcare platform. There are also AR penetrative optical devices that can project 3D images of patients’ spines onto the retinas of surgeons to assist in surgery. In China, Huashan Hospital’s neurosurgery metaverse mixed reality medical solution is at the forefront of application. In January 2022, the first “metaverse” difficult skull base surgery was successfully performed at the National Center for Neurological and Neurosurgical Diseases in China, marking the official launch of Huashan Hospital’s neurosurgery metaverse technology.

1.3 Financial Metaverse

In the financial field, metaverse technology is becoming an important tool for driving innovation and enhancing user experience. First of all, trading digital assets in the form of NFTs enriches the operation of the financial metaverse. Financial institutions such as Agricultural Bank, Postal Savings Bank, Everbright Bank, Huaxia Bank, Bank of Beijing, and Bank of Xi’an have all entered the NFT digital collectibles market. Secondly, financial institutions have launched digital virtual human optimization services and business processes, utilizing metaverse technology to enhance user experience. Foreign financial institutions in the United States, South Korea, and France provide services to customers in virtual spaces, while domestic Baixin Bank has also introduced a virtual digital employee named AIYA, engaging in immersive communication and interaction with users.

Image Source: Baixin Bank Official Website

1.4 Entertainment and Education Metaverse

For the general audience, “Ready Player One” is the beginning of understanding the metaverse. The application of the metaverse in entertainment and education is particularly diverse. There are immersive XR technology to appreciate the peaks of the Zhangjiajie Star Planet in the metaverse, as well as immersive museums that recreate the past and present of the Grand Canal of China. Shanghai Open University has built a fully integrated smart learning center metaverse, while East China Normal University and Shanghai Sanda College have jointly developed an international Chinese education metaverse. In addition, some colleges in Japan and the United States offer remote classes through virtual campuses using VR headsets.

From the concept of the metaverse gaining popularity to the implementation of various applications, the metaverse provides endless possibilities for industrial innovation and development. So, what metaverse technology is actually supporting the implementation of these scenarios?

LianGuaiRT 02Entering the Metaverse, Multi-dimensional Technologies Supporting Patent Innovation Behind the Scenes

According to the “2023 China Metaverse Industry Research Report,” as of July 2023, the total number of authorized patents for metaverse enterprises nationwide reached 23,851, including 16,003 invention patents, 6,259 utility model patents, and 1,589 design patents.

As a result of combining various technologies, the metaverse also has multiple branches in terms of patents. In the latest release of the “Key Digital Technology Patent Classification System (2023)” by the National Intellectual Property Administration of China, metaverse technology is divided into three primary branches and further divided into 13 secondary branches, 45 tertiary branches, 79 quaternary branches, and 54 quinary branches, totaling 194 branches.

The metaverse patent technology has numerous and refined branches. In order to understand it more concisely, it can be roughly divided into two levels: the software level and the hardware level.

2.1 Software Aspect

In the Metaverse, technology at the software level such as computing power, algorithms, and communication can provide technical assurance for users to access the Metaverse. Currently, blockchain technology and cloud computing technology have the largest share of patents in the Metaverse environment.

In different industries, companies will apply for Metaverse technology patents that are suitable for their own scenarios. For example, Bank of China Limited has applied for a patent titled “Mobile Payment Method and Device in the Metaverse Environment,” and China United Network Communications Limited has applied for a patent titled “Credit Query Method, Node, and System Based on the Metaverse Network.” Huawei also has its own deep layout in the Metaverse and holds multiple patents in the field of video playback and image processing.

In addition, scientific research universities are also an important source of Metaverse patent applications. There are a total of 86 universities in China that have laid out Metaverse-related patents, such as Beijing Jiaotong University’s application for “Privacy-protected Mobile Edge Computing Method for the Metaverse” and Harbin Institute of Technology’s application for “Distributed Rendering Microservice Toolchain and Runtime Middleware for Unity-based Applications” and so on.

2.2 Hardware Aspect

From virtual to real, from concept to reality. Only through immersive experiences can one have a firsthand understanding of the Metaverse, and AR&VR&MR technology is the cornerstone of experiencing the Metaverse.

In IPRDaily’s “2020-2021 VR/AR Global Patent Ranking TOP100,” internet companies, academic research institutions, and high-tech companies formed three major camps. Among them, Samsung, Tencent, Baidu, Sony, OPPO, and others are listed in the ranking.

After 2021, the popularity of patent applications related to AR&VR&MR has not diminished. For example, BOE Technology Group Co., Ltd. has recently been granted a patent for “AR/VR Smart Glasses and Manufacturing Method and Electronic Device.” Xiaomi Mobile Software Co., Ltd. has publicly disclosed a patent called “Mobile Payment Method and Device in the Virtual Reality Environment,” and Taiyuan University of Technology has announced a “Maintenance Planning Method for ‘Man-Machine-XR-Cloud’ Devices in the Metaverse” and so on.

It is worth mentioning that suggestions for the establishment of a Metaverse patent pool have also been put on the agenda. The IPwe Metaverse Patent Pool – Sensor Innovation Center was launched in January 2022, dedicated to promoting the adoption and innovation of technologies in the Metaverse field while protecting the small and medium-sized enterprises and other participants in the Metaverse ecosystem. As of March 2022, more than 1200 related patents have been included in the pool and the number continues to increase. The first domestic Metaverse industry patent pool will be launched in 2023. The patent pool is led by Beijing IP and co-led by Baidu, with the first batch of founding companies including Ruilai Intelligence, As You See, Alias Technology, and Lingyu Intelligent Control. Over 170 patents have been included in the initial batch of the pool, and 53 patents have been put into practice and open to the public.

LianGuaiRT 03 The Inevitable Risks of Intellectual Property in the Development of the Metaverse

As one of the hottest topics today, the Metaverse brings not only infinite business opportunities but also various intellectual property issues in the Metaverse world.

Since Facebook changed its name to Meta and embraced the Metaverse, patent disputes have been ongoing. First, Meta’s haptic gloves were attacked by HaptX, claiming that their gloves “seem to be substantially the same as their own patented technology.” Then, the haptic technology development company Immersion sued Meta, accusing Meta of building industry-leading virtual reality headsets through patent infringement.

NFTs, as specific virtual items that accompany the Metaverse, have also been the subject of many discussions regarding copyright issues.

In 2021, the digital collectible artist Mason Rothschild created 100 “MetaBirkins” NFT artworks, which were publicly displayed at the Miami Basel Art Fair and sold on social media platforms like Twitter. Hermès believed that this action infringed upon their trademark and diluted their brand, leading them to file a lawsuit against the artist. In the end, the court ruled in favor of Hermès and ordered the artist to pay $133,000 in compensation.

In May 2022, the term “Metaverse” officially appeared in a court judgment, announcing the verdict of the first “Metaverse copyright infringement case” in China. Qiche Company, holding the popular IP “I Am Not Fat Tiger,” discovered that some users on a Metaverse platform operated by a technology company were selling related NFTs. As a result, Qiche Company sued the technology company. The Hangzhou Internet Court immediately ordered the defendant to remove the “Fat Tiger Getting Vaccinated” NFT artwork from the platform and compensate Qiche Company for a total of 4,000 yuan (approximately $625) for economic losses and reasonable expenses.

As the concept of the Metaverse continues to gain popularity, copyright infringement of digital works has become a hot topic of discussion.

Roblox is an online platform for virtual worlds and user-generated content, and its concept of the Metaverse gained fame in 2021. However, in June of the same year, the National Music Publishers’ Association in the United States filed a copyright infringement lawsuit against Roblox. Multiple music publishers claimed that Roblox used music in its games without authorization and sought over $200 million in compensation from Roblox. In the end, the two parties reached a settlement to resolve the dispute.

In fact, as businesses enter the Metaverse, the application and protection of Metaverse patents, the operation and protection of trademarks and copyrights within the Metaverse, digital copyright in the Metaverse, and the intellectual property layout and litigation rights of wearable devices have become hot topics in the intellectual property industry. In simple terms, the operation of the Metaverse requires intellectual property to provide shelter and protection for all of these.

In the face of such diverse intellectual property issues, service agencies are actively seeking solutions to adapt to the changes. The China Copyright Protection Center held an online seminar on copyright protection in the metaverse, and Wuhan City established the first metaverse digital industry intellectual property service center in Hubei Province. The person in charge of the metaverse digital industry intellectual property service center admitted that in the future, they will explore and provide services in various aspects such as creating, utilizing, protecting, and managing intellectual property for enterprises.

LianGuaiRT 04The Value of Intellectual Property in the Metaverse Era

From 2021 to 2023, it seems that the metaverse has reached a crossroads. On the one hand, many places have issued support policies and special plans for the metaverse. The Ministry of Industry and Information Technology and other five departments have issued the “Action Plan for the Innovation and Development of the Metaverse Industry (2023-2025)”, which supports the development of the metaverse from various angles such as technological innovation, industrial application, and intellectual property protection. On the other hand, the market is cooling down, and companies are quitting the metaverse track. For example, there have been rumors that PICO, a subsidiary of ByteDance, plans to lay off employees and may give up on the metaverse.

Regarding the future of the metaverse, an article published on the website of the Central Commission for Discipline Inspection claimed that we should view the metaverse rationally and not underestimate the opportunities of 5-10 years, nor overestimate the evolutionary changes of 1-2 years. As for the future of intellectual property in the metaverse, different people have different opinions.

Some people believe that the intertwined metaverse of reality and virtuality will bring forth a series of issues such as the attribution and protection of user-generated content, the risk of infringement of digital twins of streets and buildings in the real world, the risk of infringement in the use and adaptation of works in the real world, the protection of trademarks that may extend from the real world to the virtual world, and the difficulties for intellectual property rights holders to protect against infringement in the metaverse.

Some people believe that the decentralized global operation of the metaverse also poses challenges to the attribution of copyright, global cross-border licensing or transfer, and remedies for copyright infringement. However, through appropriate interpretations of the basic principles of copyright, the Berne Convention, and other rules, as well as technological solutions, these new issues can still be properly addressed without the metaverse overturning traditional copyright laws.

Some people believe that the metaverse is a cross-border virtual world involving multiple countries and regions, and the protection and regulation of intellectual property requires joint efforts from all parties. Secondly, there is a conflict between technological innovation and legal regulations in the metaverse. Technological innovation in the metaverse is rapid, while traditional intellectual property laws may not fully adapt to the needs of the metaverse, requiring corresponding legal and policy innovations.

In summary, regardless of everyone’s opinions, there is always an optimistic attitude towards intellectual property in the metaverse. The true arrival of the metaverse may still take several decades, but we clearly know that intellectual property will provide support within it and undergo transformation. We look forward to intellectual property protection in the process of metaverse development, realizing a new world of integration between the virtual and the real.

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