Global Trademark Offices Acknowledge Virtual Goods as Equivalent to Physical Items, Influencing NFTs and Metaverse

Recent decisions by trademark offices worldwide, including in Turkey and the United States, signify a significant shift in the acknowledgment of virtual goods and services as comparable to their physical counterparts. This development has far-reaching implications for the realms of NFTs, artificial intelligence, and the metaverse, as it impacts how trademarks are classified and safeguarded.

Unprecedented Trademark Rulings

On March 31, 2023, the Turkish Patent and Trademark Office set a precedent by dismissing a trademark application for physical goods and services due to its likeness to existing virtual goods and services trademarks. This ruling was based on the Industrial Property Code No. 6769, showcasing an acknowledgment of the resemblance between virtual and physical goods/services. Concurrently, in the United States, a trademark application for virtual goods using the term “Gucci” was also turned down by the USPTO, underscoring the strong link consumers draw between virtual and physical goods/services.

Global Consensus and Changes in Classification

A webinar organized by the European Union Intellectual Property Office (EUIPO) emphasized the significance of treating virtual goods as tantamount to real-world goods, highlighting consumer perception as a crucial criterion. This trend is further supported by the incorporation of virtual goods and services in the 12th edition of the Nice Classification, slated to come into effect on January 1, 2024. These revisions will encompass classifications for downloadable digital files verified by NFTs, clothing verified by NFTs, and entertainment services within virtual environments.

Implications for Intellectual Property in the Digital Era

The alignment of trademark offices worldwide in recognizing the likeness between virtual and physical goods/services ushers in a new chapter in intellectual property law. This evolution mirrors the increasing integration of digital assets into everyday life and commerce, necessitating a modification in legal frameworks to accommodate these transformations. As virtual goods and services gain prominence, the repercussions for trademark law and the protection of intellectual property in the digital sphere are profound.