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ARTICLE · 06 SEPTEMBER 2022

Intellectual Property Implications In The Metaverse

Moroglu Arseven
Moroglu Arseven
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As the Web3 economy grows—including cryptocurrency, non-fungible tokens (NFTs) and the metaverse—so do concerns regarding the protection of intellectual property rights.

TurkeyIntellectual Property
Ezgi Baklacı Gülkokar, LL.M.
Ezgi Baklacı Gülkokar, LL.M.
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As the Web3 economy grows—including cryptocurrency, non-fungible tokens (NFTs) and the metaverse—so do concerns regarding the protection of intellectual property rights. And these concerns have come to the forefront as more brands take action to enforce their rights.

One of the most prominent examples of an IP spat over digital goods is a lawsuit involving luxury brand Hermès and a digital artist. Here what happened:

  • Mason Rothschild, in collaboration with Eric Ramirez, created fuzzy images of the Hermès Birkin bag and minted them as NFTs.
  • Hermès initiated legal action against Rothschild after he sold the NFTs for $23,500 in June 2021.
  • Hermès alleged that the "NFTs infringed upon the intellectual property and trademark rights of Hermès and are an example of fake Hermès products in the metaverse." Hermès issued a cease and desist letter to Rothschild.

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