The metaverse is emerging as a new strategic space for brands. NFTs, virtual environments, and blockchain domains offer unprecedented opportunities for value creation and consumer engagement. Yet this still loosely regulated ecosystem also provides fertile ground for counterfeiting and the misappropriation of distinctive signs. As Web3 continues to take shape, brand protection is becoming a major legal challenge, calling for responses that are simultaneously technical, contractual, and strategic.
The metaverse has become a strategic extension of global commerce. Giants like Nike (with Nikeland), Gucci, or Louis Vuitton[1] have already established virtual universes to engage a new generation of consumers. However, this new digital economy is also a fertile ground for counterfeiting.
1. Definition of a Non-Fungible Token (NFT)
A NFT (Non-Fungible Token) is, from a technical standpoint, a unique digital token recorded on a blockchain and governed by a smart contract. It allows precise identification of a given digital asset through an identifier and associated metadata. Unlike fungible cryptocurrencies, an NFT is not interchangeable. It generally does not contain the work itself but a cryptographic reference to it, ensuring traceability, uniqueness, and a record of transactions.
From a marketing perspective, NFTs primarily serve as a tool of scarcity. They transform a technically infinitely reproducible file into an object perceived as unique, collectible, and exchangeable. When used intelligently, NFTs become a lever for storytelling, community engagement, or privileged access to content, experiences, or status. NFTs do not create value by themselves but make it visible and socially desirable.
Legally, an NFT is neither an intellectual property right nor an exploitation right by nature. It is an intangible asset, and acquiring it does not transfer any rights to the underlying work, except by explicit contractual provision. Any rights attached to an NFT result exclusively from the terms set by the issuer, not the technology itself. Furthermore, an NFT can be presented as a digital certificate of authenticity, linking to a file containing the work. The NFT guarantees the authenticity of the token as a digital object, but it does not guarantee that its creator owns the rights to the referenced work.
2. NFT Counterfeiting: Misappropriated Ownership
In the metaverse, counterfeiting often occurs through NFTs. Technically, anyone can create and sell an NFT reproducing an existing logo or product without the rights holder’s authorization. The “MetaBirkin”[2] case illustrates this risk: an artist sold virtual “Birkin” bags without Hermès’ permission. The brand ultimately succeeded in court as a likelihood of confusion was established. Unlike Hermès, most brands lack the financial resources necessary to pursue such costly legal proceedings.
3. Brands and the Lack of Adapted Procedures in Blockchain Domains
Another form of misuse affecting brands in the Web3 environment concerns blockchain domains (for example, your-brand.eth or your-brand.sol)[3]. These decentralized identifiers facilitate blockchain interactions, including sending and receiving crypto-assets. However, they can incorporate signs identical or similar to existing trademarks.
Because blockchain relies on a decentralized system, these domains are subject to much more limited regulation than traditional domain names. While arbitration clauses exist, they typically exclude third parties like trademark owners. No procedure equivalent to the UDRP exists in the Web3 ecosystem, which increases risks for intellectual property rights owners.
brand holders. International cooperation would be necessary to regulate Web3 usage.
While blockchain offers opportunities to develop and enhance a brand, it also carries risks of abusive exploitation of distinctive signs. In this unsettled environment, legal and strategic support is strongly recommended to secure your brand.
4. Our Solution: Proactivity Over Litigation
Waiting for an infringement to react is risky and can be costly. It is essential to be proactive, particularly by registering your trademarks in classes 9 (virtual goods) and 42 (technological services).
Specializing in online brand protection, our company offers concrete solutions to secure your digital future:
- Active Monitoring: We monitor NFT marketplaces to detect any unauthorized use of your assets.
- Rapid Action: We work directly with marketplaces to remove infringing content.
- Blockchain Domains: We assist companies in registering their domains (e.g., .bitcoin, .blockchain, .secret and various others)[4]. We also defend their rights against abusive registrations.
Do not let counterfeiters define your presence in Web3. Contact us for a digital protection audit.
Notes
[1] « Fusion phygitale : comment Louis Vuitton redéfinit le luxe avec les NFTs », News From There, 4e éd., Nov. 2024, pp. 36-40, iptwins.com.
[2] Affaire Metabirkin : Hermès v. Rothschild: how to fight trademark infringement committed by NFT minters – IP Twins.
[3] .eth and .sol blockchain domains are digital assets based on the Ethereum and Solana blockchains, respectively. https://docs.ens.domains/learn/protocol/ https://www.sns.id/
[4] Unstoppable Domains and Secret Network Launch .SECRET: A New Era in Secure Digital Identity – IP Twins