WE/AR Blog Legal & Cybersecurity Aspects of Metaverse. What to Bear in Mind Before Launching the Metaverse? 
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Legal & Cybersecurity Aspects of Metaverse. What to Bear in Mind Before Launching the Metaverse? 

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By Oleg Boiko
15 min read
29.12.2022
cybersecurity of metaverse

In this article, we will think thoroughly together with you about the main regulations that go around Metaverse and its legal environment, as well as its core cybersecurity issues that may be of a concern. The Metaverse, also known as a virtual world or a 3D internet, is a simulated environment that can be accessed through the internet and in which users can interact with each other and with virtual objects and experiences. As the metaverse becomes more widespread and sophisticated, legal and cybersecurity issues are becoming more visible for its users and businesses. Potentially, here are a few legal and cybersecurity concerns related to the metaverse:

  • Intellectual property. This concerns creations and content that are protected by intellectual property laws, such as copyrights, trademarks, and patents.
  • Privacy. Personal data, collection & storage.
  • Safety. Safety concerns as to the virtual harassment or abuse.
  • Liability. In this regard, it is about the liability for virtual accidents or injuries, liability for virtual property damage, and liability for virtual defamation or other harms.
  • Regulation. The bodies and government and how are they going to protect the rights of users.

What is the Metaverse?

The Metaverse is a virtual environment that can be accessed through the Internet and in which users can interact with each other and with virtual objects and experiences. It is sometimes referred to as a virtual world or a 3D internet. For understanding, you can see the best metaverse examples. In the metaverse, there are often interconnected virtual spaces with their own rules and regulations. Users can typically enter the metaverse using a computer or mobile device, and may interact with the virtual environment using a variety of input methods, such as a keyboard, mouse, or virtual reality headset. Users can create and customize their own virtual avatars, which can represent them in the virtual environment. They can also interact with other users’ avatars and with virtual objects and experiences, such as virtual games, events, and social spaces. The metaverse may also include virtual economies, in which users can buy, sell, and trade virtual goods and services. The metaverse is still in its early stages of development, but if you evaluate the trends, it has the potential to become a major platform for social interaction, entertainment, education, and commerce. Some experts predict that the metaverse will eventually become a significant part of the internet and may even surpass the real world in terms of its influence and importance.

Data Protection Challenges. The Importance of Cybersecurity & Advertising Regulation

There are several data protection challenges that may arise in the context of the metaverse. As a virtual environment that is accessed through the internet, the metaverse may collect and store a significant amount of personal data about its users, including their virtual activities and interactions. This data may be vulnerable to cyber attacks or other unauthorized access, and there may be legal issues related to the collection, use, and storage of this data. To address these data protection challenges, it is important for companies operating in the metaverse to implement robust cybersecurity measures to protect user data from unauthorized access and to ensure that they are in compliance with relevant data protection laws and regulations. This may include implementing strong passwords, encrypting data, and regularly updating security software. Advertising regulation in the metaverse may also be an important consideration. As in the real world, companies operating in the metaverse may use advertising to promote their products and services. However, the virtual nature of the metaverse may present unique challenges when it comes to regulating advertising, as it may be difficult to distinguish between advertising and other content in a virtual environment. Governments and regulatory bodies may need to develop specific rules and regulations to govern advertising in the metaverse in order to protect consumers from deceptive or misleading advertising practices.

Expected Impact of the EU Artificial Intelligence Regulation, the Metaverse as a Workplace

The EU Artificial Intelligence Regulation is a set of rules that were adopted by the European Union in 2021 to govern the use of artificial intelligence (AI) within the EU. The regulation aims to ensure that AI is developed and used in a way that is ethical, transparent, and trustworthy, and that it does not pose a risk to the rights and freedoms of individuals. One of the main impacts of the EU Artificial Intelligence Regulation is that it imposes strict requirements on companies that develop and use AI systems within the EU. These requirements include conducting a risk assessment before deploying an AI system, providing clear and transparent information about how the AI system works, and ensuring that the AI system complies with relevant data protection laws. In the context of the metaverse, the EU Artificial Intelligence Regulation may have an impact on how AI is used to develop and operate virtual environments. For example, AI may be used to create and manage virtual experiences or to personalize the virtual environment for individual users. Companies operating in the metaverse may need to ensure that they are in compliance with the EU Artificial Intelligence Regulation when using AI in this way. The Metaverse may also become an important workplace in the future, as it allows for remote collaboration and communication in a virtual environment. The EU Artificial Intelligence Regulation may have an impact on the use of AI in the metaverse as a workplace, as it may regulate the use of AI to automate or augment work processes. Companies operating in the metaverse may need to ensure that they are in compliance with the EU Artificial Intelligence Regulation when using AI in this way.

Are There Any Privacy Concerns in the Metaverse to Pay Attention to?

Sure, but they are no different to other digital concerns nowadays. Privacy is a major concern in the Metaverse, as the virtual environment may collect and store a significant amount of personal data about its users, including their virtual activities and interactions. This data may be vulnerable to cyber attacks or other unauthorized access, and there may be legal issues related to the collection, use, and storage of this data. For example, to address privacy concerns in the metaverse, it is important for companies operating in the virtual environment to implement robust cybersecurity measures to protect user data from unauthorized access and to ensure that they are in compliance with relevant data protection laws and regulations. This may include implementing strong passwords, encrypting data, and regularly updating security software. In addition, companies operating in the metaverse should be transparent about their data collection and use practices, and should provide clear and easy-to-understand privacy policies that outline how they collect, use, and protect user data. Users should also be aware of their own privacy settings and should be careful about sharing personal information in the virtual environment. Due to the early stages of development of the metaverse and the lack of legal frameworks for addressing these issues, legal and ethical issues related to privacy in the metaverse may be complex and evolving.

Intellectual Property Rights in the Metaverse. Virtual Environment & Users

Intellectual property (IP) rights may be relevant in the context of the metaverse, a virtual environment accessed through the internet where users can interact with each other and with virtual objects and experiences. IP rights are legal protections that apply to creative works and inventions, and can include copyrights, trademarks, patents, and trade secrets. In the metaverse, IP rights may be used to protect virtual creations and content, such as virtual games, art, and music. For example, a virtual game developer may use trademarks to protect the name and branding of its virtual games, and a virtual artist may use copyrights to protect the art and designs that they create in the metaverse. However, enforcing IP rights in the metaverse may be difficult, as it may be challenging to determine who owns the rights to a particular virtual creation or to prove that a particular virtual creation has been used without permission. It may also be difficult to enforce IP rights in a virtual environment, as it may be difficult to locate and identify individuals who are infringing on IP rights.

Countrywise Privacy Laws in the Metaverse

Privacy laws in the context of the metaverse, a virtual environment accessed through the internet where users can interact with each other and with virtual objects and experiences, may vary from country to country. Here is a brief overview of some key privacy laws in a few countries:

United States

The main federal privacy law in the United States is the Children’s Online Privacy Protection Act (COPPA), which applies to websites and online services that are directed at children under 13. The Federal Trade Commission (FTC) is responsible for enforcing COPPA. In addition, various states have their own privacy laws, such as the California Consumer Privacy Act (CCPA).

European Union

The main privacy law in the European Union is the General Data Protection Regulation (GDPR), which applies to the collection, use, and storage of personal data. The GDPR gives individuals the right to control their personal data and imposes strict requirements on companies that collect and process personal data.

Canada

In Canada, the main privacy law is the Personal Information Protection and Electronic Documents Act (PIPEDA), which applies to the collection, use, and disclosure of personal information in the course of commercial activities. PIPEDA sets out the principles for collecting, using, and disclosing personal information, and gives individuals the right to access and correct their personal information. Overall, it is important for companies operating in the metaverse to ensure that they are in compliance with relevant privacy laws and regulations in the countries where they operate. This may involve implementing robust cybersecurity measures to protect user data from unauthorized access and providing clear and transparent information about their data collection and use practices.

Metaverse & Cybersecurity

Cybersecurity is an important concern in the context of the metaverse, a virtual environment accessed through the internet where users can interact with each other and with virtual objects and experiences. The metaverse may collect and store a significant amount of personal data about its users, including their virtual activities and interactions. This data may be vulnerable to cyber attacks or other unauthorized access, and there may be legal issues related to the collection, use, and storage of this data. Considering these cybersecurity concerns, it is crucial that companies operating in the metaverse implement robust security measures. Regularly updating security software, implementing strong passwords, and encrypting data are ways to ensure data privacy. In addition, companies operating in the metaverse should be transparent about their data collection and use practices, and should provide clear and easy-to-understand privacy policies that outline how they collect, use, and protect user data. Users should also be aware of their own security settings and should be careful about sharing personal information in the virtual environment.

Boundless Marketplace in the Metaverse

A boundless marketplace in the metaverse refers to a virtual environment where users can buy and sell a wide range of goods and services without any physical or geographical boundaries. The metaverse, a virtual environment accessed through the internet where users can interact with each other and with virtual objects and experiences, has the potential to become a major platform for commerce, including the creation of boundless marketplaces. In a boundless marketplace in the metaverse, users may be able to browse and purchase virtual goods and services from anywhere in the world, using virtual currency or other forms of payment. The boundless marketplace may include virtual stores, markets, or auction sites where users can buy and sell virtual goods and services, such as virtual clothing, accessories, artwork, and other virtual creations. The boundless marketplace in the metaverse may also include virtual services, such as consulting, education, entertainment, and other services that can be delivered remotely in a virtual environment. Overall, the boundless marketplace in the metaverse has the potential to revolutionize the way we buy and sell goods and services, and to create new opportunities for commerce and exchange in a virtual environment. However, the creation and operation of a boundless marketplace in the metaverse may also present a range of legal and ethical issues, such as intellectual property, privacy, safety, and regulation.

Data Protection

Data and data protection are important considerations in the context of the metaverse, a virtual environment accessed through the internet where users can interact with each other and with virtual objects and experiences. The metaverse may collect and store a significant amount of personal data about its users, including their virtual activities and interactions. This data may be vulnerable to cyber attacks or other unauthorized access, and there may be legal issues related to the collection, use, and storage of this data. To address data protection concerns in the metaverse, it is important for companies operating in the virtual environment to implement robust cybersecurity measures to protect user data from unauthorized access and to ensure that they are in compliance with relevant data protection laws and regulations. This may include implementing strong passwords, encrypting data, and regularly updating security software.

Avatars Usage & Altercations. How Is It Possible?

When users interact through their avatars in the metaverse, it is possible that some kind of altercation may occur that would equate to breaking the law in the real world. For example, if two users engage in virtual activities that are considered criminal in the real world, such as virtual theft or virtual harassment, they may be subject to legal consequences. In such cases, it may be difficult to determine who is responsible for the criminal activity, as it may be difficult to identify the individuals behind the avatars. However, companies operating in the metaverse may have policies and procedures in place to address criminal activity, and they may work with law enforcement authorities to identify and prosecute individuals who engage in criminal activity in the virtual environment.

Summing up

Certainly, there are legal & cybersecurity aspects that needs time to evolve, as Metaverse is relatively green notion. Nevertheless, governments, international community, as well as corporate world is steadily working on delivering a workable solutions to enhance security, privacy, and all the most important sides if Metaverse’s functioning. Furthermore, we continue creating AR/VR for Metaverse to bring us closer to the new age of all-engaging immerse communication. Contact us today to get started! We know all about it!