Becoming Well Metaversed

Location, Location . . . Location?

Proponents of economic, technological and social development in the Pittsburgh region—also known as readers of TEQ—have long touted the opportunities and benefits of conducting research, growing (and funding) a business and raising a family here. These concerted efforts are undoubtedly bearing fruit (and acclaim), and we should continue at full steam. But what if we could also transport instantaneously (sans bridges, tunnels and PennDOT projects) to an alternate world for nearly boundless interactions?

Though not a panacea, it’s time for us to become well-versed in the metaverse.

“Metaverse” sounds a bit abstract. What is it, really?

Mainstream media will have us believe that the metaverse consists of a bunch of futurists wearing goofy-looking headsets to drink fake coffee. However, it is more useful to think of the metaverse as a collection of tools and user interface enhancements designed to provide individuality through the way most people meet nowadays: online. When we meet in person, small clues add up to signals about our personalities and values, but much of this is lost in traditional videoconference calls. At its core, the metaverse is trying to increase the quality of human interactions online.

Does the metaverse have something to do with those NFT things?

Actually, yes. Non-fungible tokens (NFTs) are unique digital assets that represent the tokenized version of real-world assets. NFTs solve the “double spend” problem, where digital assets are replicated so perfectly that you can’t distinguish the original. For example, if an artist creates a painting and scans it to a digital file, there is no concept of the “original” because any user can create identical copies of that file. NFTs solve that problem, which is very useful if you’d like to show off your recently acquired autographed Steelers jersey.

Isn’t the metaverse just an entertainment and marketing play?

Not necessarily. For example, healthcare industry (e.g., digital health) participants could leverage the metaverse for breakthroughs in key areas like interoperability and security. Interoperability of health information, devices and systems is critical for patient-centered care and value-based initiatives. Blockchain has emerged as a potential gamechanger for healthcare data sharing. Its decentralized approach enables data accuracy, parity and authenticity.

Such tools could provide patients with greater control and customization of the flow of their medical information. Ultimately, siloed and disparate electronic health systems could be migrated into a unified, blockchain-based ecosystem.

So what insight can be offered by a couple of lawyers?

Activities using technology designed to create a metaverse could have real-life implications relating to issues like intellectual property rights.

It’s important to remember that the laws of the land still apply in the metaverse, but most laws (and contracts) don’t contemplate the concept of unique and valuable digital assets. For example, it’s likely that previously granted rights don’t specifically address new types of digital assets (e.g., an NFT for a piece of jewelry). Even more complex are the issues around authorship. If an avatar or AI system invents a new technology or creates software or art, intellectual property law in the United States may not offer much protection. For example, an AI system cannot be named as an inventor on a U.S. patent, and U.S. Copyright Office guidance indicates that, to be copyrightable, a work “must owe its origin to a human being.”

Thinking of the metaverse as a collection of tools designed to leverage unique and valuable digital assets opens the door to a host of legal issues that simply did not exist a few years ago.

Bringing it back to Pittsburgh, what’s the pitch? Lots of virtual Steelers bars?

Maybe. But keep in mind that (1) western Pennsylvania is a hotbed of research and cutting-edge technology that could be fundamental to metaverse development; and (2) although it feels like another dimension, the metaverse is not entirely detached from reality. Those who can successfully bridge worlds will take the lead in the virtual space race (and in Industry 4.0) — and we certainly know something about bridges.

Doneld Shelkey (doneld.shelkey@morganlewis.com) is a partner and Ben Klaber (ben.klaber@morganlewis.com) is an associate at Morgan Lewis & Bockius LLP, a global law firm providing comprehensive corporate, transactional, litigation and regulatory services. Visit www.morganlewis.com