METAVERSE and WEB3 legal environment

KIELTYKA GLADKOWSKI KG LEGAL advises not only on technological transactions and cross-border agreements for foreign entities in the METAVERSE and WEB3 industry. KIELTYKA GLADKOWSKI KG LEGAL secures the legal interests of foreign investors and foreign technology companies in Poland in complex cross-border legal issues regarding Polish jurisdiction for IT entities operating in the metaverse.

The team of KIELTYKA GLADKOWSKI KG LEGAL advises on legal issues such as:

• smart contracts and the legal environment of transactions under American law with effect in Polish jurisdiction;

• legal advice for entities on the virtual reality market in the VR/ AR-MR sector;

• interdisciplinary and multijurisdictional legal issues related to the development of augmented reality (AR) and virtual reality (VR) technologies;

• legal support for American IT engineering entities operating in Poland;

• blockchain and web3 technology law;

• Intellectual property law and issues of industrial property law for devices using non-exchangeable token technologies, which are an integral part of the Metaverse space;

• legal support for entities operating in the goggles and headset technology industry;

• legal protection against potential damages claims by end users under Polish civil and tort law related to the Metaverse;

• protection of personal data in the context of the needs of the Metaverse environment.

The presence of KIELTYKA GLADKOWSKI KG LEGAL in creating one of the most modern sectors of the IT industry is a special distinction for our team.

The legal environment of modern technologies poses particular difficult tasks for KIELTYKA GLADKOWSKI KG LEGAL team in the search for the possibility of using legal constructions dedicated to the multitude of regulations of various legal disciplines.

A very high level of difficulty in effectively securing the interests of a foreign client in legal terms in Polish jurisdiction is shown in the following overview of the basic issues of the METAVERSE environment.

The concept of METAVERSE

Metaverse is understood as metaworld. This term comes from the book “Blizzard” by Neal Stephenson. Its meaning is a virtual world that exists parallel to the real world. The modern understanding of this term is constantly evolving.

VR/AR-MR sector

The name of this sector of the economy means the virtual and augmented and mixed reality market. It is a concept involving the coexistence of many virtual 3D worlds in which people are supposed to function, receiving many impressions from exploring these internet-created places. However, in order to enter the metaworld and function there, special sets in VR (virtual reality) or AR (augmented reality) technology are needed.

There are currently several metaverse platforms. These include: Fortnite, Roblox and Horizon Worlds.

The platforms supporting the creation of the metaworld are Epic Games, Microsoft and Apple.

Technologies supporting the operation of this industry

It is the technologies of augmented reality (AR) and virtual reality (VR) that affect the development of the metaworld and all activities related to it.

VR technology allows users to experience sensory experiences while moving around the world of the metaverse – one can, for example, hear a familiar melody and receive stimuli when touching a virtual object. AR technology, on the other hand, takes elements from the virtual world of the metaverse and maps them to the real world.

The target IT engineering environment

At the moment, there are several platforms through which one can use these technologies. However, the intentions of the creators are to create a uniform platform that would connect all metaworlds. This is influenced by blockchain and web3 technologies.

Blockchain is a decentralized system that is used to store and transmit information. The block register can take the form of a distributed database or a one-way event log. In such a register, new blocks can only be added to the end of the block structure. From the practical side, blockchain is a digital ledger that acts as a register of transactions. Most often, the register concerns data in the form of financial transactions.

Web3, on the other hand, is the next generation of the Internet, which is designed to put the web in the hands of creators. Its basic value is to decentralize the ownership of platforms or Internet applications on which content is placed.

Intellectual property law aspects in respect of Metaverse

With the growing popularity of non-fungible tokens, which are an integral part of the Metaverse space, intellectual property law has become relevant to proper governance. Tech companies will soon be competing to develop more advanced AR and VR tools, including high-tech goggles and headsets. This will open up new opportunities for intellectual property rights in this sector, such as software and device patents. New brands will emerge, paving the way for new trademarks for users of the virtual world.

Civil law – torts related to the metaverse

On the basis of tort law in the Polish Civil Code, if a user of the metaverse platform has suffered damage in connection with the use of such technology, it is not his fault, and his action did not contribute to this damage, then the creators and persons responsible for the functioning of the metaverse are theoretically liable for this damage and therefore obliged to repair it.

Protection of personal data in the metaverse context

The creators and persons responsible for the functioning of the metaverse are also subject to the provisions of the GDPR. In this case, VR/AR-MR platforms process users’ personal data. First of all, it is about the image of the users and their location. Therefore, consent is needed for the processing of various data from users of such platforms to ensure that they are adequately protected in this respect so that they feel safe when using them.

Commonly discussed web3 projects in the industry:

Adidas https://lnkd.in/e6YAa3fv

Starbucks https://lnkd.in/e9FxsZ5B

Tiffany & Co https://nft.tiffany.com

Louis Vuttion https://lnkd.in/epsJWZCc

Hennessey (LVMH) https://lnkd.in/evFSq_zf  

Nike https://lnkd.in/ejcAHPR4  

Puma https://lnkd.in/ez7GhnyM

Nivea https://lnkd.in/eVZQSHqu  

Trix (Nestle) https://lnkd.in/eEdtNAUG  

Porsche (VW Group) https://nft.porsche.com  

Rimowa https://lnkd.in/eCQNGzm3

Pepsi https://lnkd.in/e2gq4geM

Hublot (LVMH) https://lnkd.in/eAJ-DhHD  

Panerai https://lnkd.in/eMxcpdgV

Tag Heuer https://lnkd.in/eAv-6ZpN

Timex https://lnkd.in/evFYmwxb  

Jacob & Co. https://jacobandco.com/nft 

IWC https://nft.iwc.com 

McDonalds https://lnkd.in/eTg4c5cZ

KFC https://lnkd.in/eDvmb6rw  

Disney https://lnkd.in/efAHFSRs

Netflix https://lnkd.in/ebNqRUga

H&M https://lnkd.in/eU8YiH9x  

Gucci (Kering) https://lnkd.in/estudKCw  

Philipp Plein https://lnkd.in/efn8QEKg

Dolce & Gabbana https://lnkd.in/embgKiNj

Prada https://lnkd.in/euK6iqKy

Yves Saint Laurent Beauté (L’Oréal) https://lnkd.in/e567h8eu  

Ralph Lauren https://lnkd.in/etm5N2ge

Hugo Boss https://lnkd.in/eB4-gW-B

Burberry https://lnkd.in/ewshTs5x

Hermes https://lnkd.in/e97uxyWB

Givenchy (LVMH) https://nft.givenchy.com/  

Marc Jacobs (LVMH) https://lnkd.in/es5Qtzk2

Lacoste https://undw3.lacoste.com/  

Zara https://lnkd.in/enDpmW2q  

Heineken https://lnkd.in/eyQX9x8X  

Red Bull https://lnkd.in/eWM7Urkt  

Jack Daniels https://lnkd.in/eFT2M758   

Cartier https://nftcartier.online/  

Estée Lauder https://lnkd.in/eyNpCt8b

Balmain https://lnkd.in/eb8aSvzc  

GAP https://nft.gap.com/  

L’Oréal https://lnkd.in/egFnCZfD  

Ray-Ban https://lnkd.in/ebCgvJif  

Hello Kitty https://lnkd.in/ey44MMjF  

Hyundai Motor https://lnkd.in/e464kjFy  

BMW https://lnkd.in/eqa3x2Pe

Skoda (VW Group) https://lnkd.in/eFVFJRQ8  

Audi (VW Group) https://lnkd.in/ez_qQVVw  

Lamborghini (VW Group) https://lnkd.in/eq2dTM_Z  

Nissan https://lnkd.in/eRfhtfMF  

Ford https://lnkd.in/eXJZc7vK  

Youtube https://lnkd.in/e_nz8Nz7   

Mastercard https://lnkd.in/ezmBT4-Q

Visa https://lnkd.in/epPYXn5z

Time Magazine https://nft.time.com/  

Budweiser (AB InBev) https://nft.budweiser.com/   

Bud Light (AB InBev) https://lnkd.in/ezBmK9_g  

Australian Open https://lnkd.in/e-nj_jUZ  

McLaren https://nft.mclaren.com/  

NFL https://nflallday.com/  

NBA https://nbatopshot.com/

New York Knicks https://nyknft.com/  

Charles & Keith https://lnkd.in/e7ZRH5Me

LimeWire https://limewire.com/  

Instagram https://lnkd.in/ei9Crt4v

(non exhaustive)

Meta Platforms Technologies (MPT) Supplementary Terms

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One must be at least 13 years of age to use Meta Platforms Technologies products. The platform cannot be used by a person convicted of sexual offences, or a person whose account has been banned for violating:

  • Meta Rules,
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The MPT products may also not be used by a person who has been banned from receiving them.

The user may not impersonate another person. They must provide up-to-date and accurate information in order to use the MPT products.

It is prohibited to sell the user’s personal data to advertisers. It is also prohibited to share personally identifiable information (such as user’s name, email address, or other contact information) with advertisers without user’s express consent.

This is of particular importance in the view of recent decisions of Data Protection Commission regarding the questionable justification of sending Meta users ads based on their online activity. Data Protection Commission declared that in breach of its obligations in relation to transparency, information in relation to the legal basis relied on by Meta Ireland was not clearly outlined to users, with the result that users had insufficient clarity as to what processing operations were being carried out on their personal data, for what purpose(s), and by reference to which of the six legal bases identified in Article 6 of the GDPR. The DPC considered that a lack of transparency on such fundamental matters contravened Articles 12 and 13(1)(c) of the GDPR. It also considered that it amounted to a breach of Article 5(1)(a), which enshrines the principle that users’ personal data must be processed lawfully, fairly and in a transparent manner.

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In the event that the user uses MPT products for commercial, business or other non-personal purposes, the user acknowledges that any such use is also subject to the terms and conditions applicable to each MPT product, unless otherwise decided by Meta.

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The user grants free consent for the use of his profile name, profile picture and information about the actions taken by the user in MPT products in addition to or in connection with advertisements, offers and other sponsored or commercial content that are displayed on MPT products.

By using the MPT products, the users are granted a limited license to access, download and use software and content on MPT product devices that the users own or control, generally for their personal, non-commercial use, provided that the users comply with the Supplemental Terms. If the user uses the MPT products in an unauthorized manner, this is related to the automatic termination of the granted license.

MPT Products may be used to access software, applications, services, content and virtual items provided by third parties. In such a situation, users are also bound by the terms and conditions of third parties.

Meta in the supplementary regulations indicates that the user may encounter information from various sources and by using MPT products, he agrees to the risk of appearing unreliable, offensive, inappropriate or otherwise inappropriate content.

Meta also emphasizes the possibility of modifying products within the limits of applicable law, as well as in matters not regulated by law.

Suspension or closure of an account is possible when:

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The user may not hide his location by changing the IP number or other methods intended for this purpose.

The user may not directly or indirectly export, re-export, deliver, resell, transfer or otherwise dispose of MPT products by himself or through any other person:

– to any individual, entity or country or region where prohibited by trade law,

– to any person on the U.S. or EU Restricted Entity List,

– for any purpose prohibited by trade law, including but not limited to nuclear, chemical or biological weapons or missile technology applications.

The user may not use, distribute or transfer the MPT products in any way that would violate applicable law, including applicable Trade Laws of the US, UK, European Union, European Union Member States and other applicable government authorities, and will not allow others to do so activities.

MPT products may not be resold, transferred or otherwise disposed of in a country subject to comprehensive US trade sanctions or to a person or organization sanctioned by the US, EU or UK government.

The user is not allowed to create currencies, stocks, banks, stock exchanges or similar financial instruments in Horizon Worlds.

Other terms and conditions that may apply to a specific user:

  • Terms and Conditions of the Meta Quest Store
  • MPT Trading Regulations
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