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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
Follow up to the European Parliament non-legislative resolution on policy implications of the development of virtual worlds – civil, company, commercial and intellectual property law issues
on policy implications of the development of virtual worlds – civil, company, commercial and intellectual property law issues
Rapporteur: Axel VOSS (EPP / DE), Ibán GARCÍA DEL BLANCO (S&D / ES)
(2023/2062(INI))
Reference numbers: 2023/2062 (INI) / A9-0442/2023 / T9-0029/2024
– having regard to the Treaty on the Functioning of the European Union, and in particular Articles 4, 16, 26, 81, 114 and 118 thereof,
Date of adoption of the resolution: 17 January 2024
– having regard to the Berne Convention of 1886 for the Protection of Literary and Artistic Works,
Competent Parliamentary Committee: Committee on Legal Affairs (JURI)
– having regard to the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks, as both amended on 28 September 1979 and updated in its twelfth edition (12-2023),
Brief analysis and assessment of the resolution and requests made in it:
– having regard to the World Intellectual Property Organization (WIPO) Copyright Treaty of 1996 and the WIPO Performances and Phonograms Treaty of 1996,
The resolution welcomes the strategy of the Commission Communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’ and raises the need for careful assessment of all the issues relating to the development of virtual worlds and their effective coverage by existing legislation, especially for when virtual worlds reach maturity. It emphasises the need to ensure human-centric virtual worlds, while protecting the values of the European Union, and raises possible risks and challenges in relation to the identification of users, data protection, especially biometric and behavioural data, digital literacy and skills and the accessibility of virtual worlds to all user groups.
– having regard to Directive 96/9/EC of the European Parliament and of the Council of 11 March 1996 on the legal protection of databases,
The resolution puts emphasis on the importance of regularly monitoring compliance and ensuring effective enforcement of the applicable legal instruments in force, as well as the need for regular fitness checks of the applicable legal instruments in force. It calls on the Commission to assess the appropriateness of the existing provisions of private international law applicable in the EU; highlights the need for ensuring that applicable terms and conditions are transparent, clear, fair and easy to understand; expresses concern with the use of avatars and decentralised systems in relation to accountability and with the use of non-fungible tokens (NFTs) referencing trademarks without the authorisation of their owners and the need to address infringement; and acknowledges the applicability of liability rules of the Digital Services Act (DSA) and of the special regime established in Article 17 of the Copyright Directive to cover the uploading of user-generated content but calls for further clarification on how existing rules will apply to online content-sharing services that make content available in virtual worlds.
– having regard to Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’),
Response to the requests and overview of the action taken, or intended to be taken, by the Commission:
– having regard to Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (Rome II),
(Paragraph 7) The Commission notes the usefulness of guidelines and best practices, clarifying the legal obligations and responsibilities of each stakeholder involved in virtual worlds (such as platform operators, service providers, developers and users) under the applicable EU law. The Commission will explore appropriate frameworks, bringing together different stakeholders, that could enable the joint development of such guidelines and best practices. The Commission will consider the feasibility of a dedicated action in this direction.
– having regard to Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I),
(Paragraph 8) The Commission agrees regarding the importance of regular evaluations to ensure that legislation remains fit for purpose in the digital environment, in line with the Better Regulation guidelines. The ongoing Fitness Check of EU consumer law on digital fairness, as a first step, will examine the adequacy of the existing horizontal consumer protection rules in light of technological developments.
– having regard to Directive 2009/24/EC of the European Parliament and of the Council of 23 April 2009 on the legal protection of computer programs,
(Paragraph 10) Regarding the protection of personal data, the Commission already stated in its communication that the General Data Protection Regulation (GDPR) fully applies to the processing of personal data in virtual worlds. This includes specific rules on processing of sensitive personal data (e.g. biometric data for purpose of unique identification). Moreover, where the processing of personal data is not necessary for the provision of the service, this service must be provided without it. The Commission is also working on a virtual worlds toolbox for the public (action 3 of the communication) which will include guidance on data protection aspects.
– having regard to Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) (Brussels I Regulation),
(Paragraph 11) The Commission agrees that virtual worlds should ensure privacy and effectively prevent unauthorised data disclosure, identity theft and other forms of abuse of personal data collected online. The EU Digital Identity Framework will provide users with European Digital Identity Wallets. Their use shall be voluntary and will give users full control over their digital identities. Further, European Digital Identity Wallets should include a functionality to generate user chosen and managed pseudonyms.
– having regard to Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC,
(Paragraph 12) Regarding the swift implementation of actions aimed at raising awareness and improving digital skills and literacy, the Commission has already published calls under the Digital Europe and the Creative Europe programmes to support skills building. The Commission will also publish soon the online toolbox for the general public and educational material for educators, parents and children, promoting access and inclusiveness for all.
– having regard to Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure,
(Paragraph 16) The Commission is looking into private international law matters in the context of the preparation of the application reports on Brussels Ia and Rome II Regulations, envisaged for adoption in 2024 or early in 2025. Should the reports conclude that some provisions of those Regulations need to be amended, it will propose the amendments in due course.
– having regard to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC,
(Paragraph 20) The Commission takes note of the concerns regarding the accountability of avatars and decentralised systems but wants to point out that the implementation of effective identity management systems is key in all cases in order to allow for their proper and timely identification. Decentralised autonomous organisations (DAO) are decentralised spaces in which communities take joint action and bear collective liability, based on internal governance mechanisms enabled by distributed-ledger technologies. This may make the community as a whole liable but not each individual. This and any related aspect will be further analysed in the upcoming DAO study, which is expected to be published in at the end of this year or beginning 2025. The Commission appreciates the interest that the Parliament takes in this project.
– having regard to Directive (EU) 2016/680 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data by competent authorities for the purposes of the prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and on the free movement of such data,
(Paragraph 24) The Commission takes note of the interest of the European Parliament in the developments related to the registration of trademarks in particular the latest update brought by the twelfth edition of the ‘Nice classification’, which allows for the registration of trademarks in classes covering their use in virtual worlds. The Commission agrees with the need to closely monitor the concrete application and practical consequences of the new classification options. The Commission agrees that effective measures are necessary to address infringements where trademarks are referenced in NFTs without the authorisation of the trademark owner; notes however that this type of infringement is relevant in the case of designs as well. The Commission notes that as part of the toolbox against counterfeiting it will initiate a dialogue with stakeholders on the new technologies aiming at adapting intellectual property practices and strategies to virtual worlds and Artificial Intelligence (AI).
– having regard to Directive (EU) 2016/2102 of the European Parliament and of the Council of 26 October 2016 on the accessibility of the websites and mobile applications of public sector bodies,
(Paragraph 25) As regards the need for further clarification on how existing rules should apply to online content-sharing services that make content available in virtual worlds and how they should be enforced, in 2021 the Commission has issued guidance - on Article 17 of Directive 2019/790. This guidance aims to support the correct and coherent transposition of Article 17 across the Member States.
– having regard to Regulation (EU) 2017/1001 of the European Parliament and of the Council of 14 June 2017 on the European Union trade mark,
While the guidance does not specifically mention virtual worlds, the principles outlined therein can be applied to different online content-sharing services (OCSSP), including in principle those that make content available in virtual worlds. Insofar as providers of platform-implemented virtual worlds qualify as OCSSP, they are required to comply with the liability rules set out in Article 17. Even where such service providers do not qualify as OCSSP, they would be subject to the DSA rules to the extent they are providing hosting and online platform services.
– having regard to Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC,
The Commission will monitor the development of virtual worlds with a view to ascertain whether further action will be required to ensure the protection of copyright-protected content.
– having regard to Regulation (EU) 2018/1807 of the European Parliament and of the Council of 14 November 2018 on a framework for the free flow of non-personal data in the European Union,
(Paragraph 28) As regards the call to consider broadening the scope of the stakeholders’ dialogue on generative AI, the Commission is monitoring the intellectual property implications of output content generated by or with the assistance of AI and is committed to engage with concerned stakeholders to ensure that challenges and opportunities are adequately addressed. The Commission notes that the stakeholder dialogue to be initiated as part of the toolbox against counterfeiting will cover a wide range of issues related to adapting IP practices and strategies to virtual worlds and AI.
– having regard to Directive (EU) 2019/790 of the European Parliament and of the Council of 17 April 2019 on copyright and related rights in the Digital Single Market and amending Directives 96/9/EC and 2001/29/EC (Copyright Directive),
(Paragraph 32) The Commission is working on the virtual worlds toolbox with a modular approach. Sections currently under development include topics and advice in relation to the digital ID wallet, data protection and privacy, disinformation and misinformation, copyrights and intellectual property rights, digital assets, cybersecurity, cybercrime, avatars, equipment needed and respect to all users. The Commission welcomes the recommendation for the next steps of the toolbox’s gradual development and stresses its commitment to sustainable and human-centric virtual worlds.
– having regard to Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services,
– having regard to Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information,
– having regard to Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June 2019 on promoting fairness and transparency for business users of online intermediation services,
– having regard to the proposal for a regulation of the European Parliament and of the Council laying down harmonised rules on artificial intelligence (Artificial Intelligence Act) and amending certain union legislative acts (COM(2021)0206),
– having regard to the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 910/2014 as regards establishing a framework for a European Digital Identity (COM(2021)0281),
– having regard to the proposal for a regulation of the European Parliament and of the Council on harmonised rules on fair access to and use of data (Data Act), (COM(2022)0068),
– having regard to the proposal for a directive of the European Parliament and of the Council on liability for defective products (COM(2022)0495),
– having regard to the proposal for a directive of the European Parliament and of the Council on adapting non-contractual civil liability rules to artificial intelligence (AI Liability Directive) (COM(2022)0496),
– having regard to Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act),
– having regard to Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act),
– having regard to Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a single market for Digital Services and amending Directive 2000/31/EC (Digital Services Act),
– having regard to Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on general product safety, amending Regulation (EU) No 1025/2012 of the European Parliament and of the Council and Directive (EU) 2020/1828 of the European Parliament and the Council, and repealing Directive 2001/95/EC of the European Parliament and of the Council and Council Directive 87/357/EEC,
– having regard to Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937,
– having regard to its Resolution of 20 October 2020 on Intellectual property rights for the development of artificial intelligence technologies (A9-0176/2020),
– having regard to Commission communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘Making the most of the EU’s innovative potential – An intellectual property action plan to support the EU’s recovery and resilience’ (COM(2020)0760),
– having regard to its Resolution of 11 November 2021 on an intellectual property action plan to support the EU’s recovery and resilience,
– having regard to the Commission communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’,
– having regard to the Commission communication of 11 May 2022 entitled ‘A Digital Decade for children and youth: the new European strategy for a better internet for kids (BIK+)’ (COM (2022)0212),
– having regard to Rule 54 of its Rules of Procedure,
– having regard to the report of the Committee on Legal Affairs (A9-0442/2023),
A. whereas virtual worlds have not yet been widely taken up, although their deployment in a number of use cases in various sectors has raised general awareness and has attracted the attention of public authorities;
B. whereas it is essential that we continue to promote and develop new technologies, recognising their transformative potential in fields such as education, culture, healthcare, gaming and many others, while addressing the risks that these new technologies may pose;
C. whereas experts say it might still take 10 to 15 years for virtual worlds to reach their full potential and that their development can significantly impact the digital landscape in future years, bringing both opportunities and risks that need to be addressed;
D. whereas digital sovereignty is a means of promoting the notion of European leadership and strategic autonomy and is key to guaranteeing the EU’s ability to shape and enforce legislation in the digital environment, ensuring ethical, sustainable and human-centric virtual worlds and safeguarding the fundamental rights and values of the EU;
Definitions
1. Notes that the concepts of ‘metaverse’ and ‘virtual world’ currently lack consolidated definitions;
2. Welcomes in this regard the proposal included in the Commission communication for a definition focusing on the main features of virtual worlds, as follows: ‘virtual worlds are persistent, immersive environments, based on technologies including 3D and extended reality (XR), which make it possible to blend physical and digital worlds in real time, for a variety of purposes such as designing, making simulations, collaborating, learning, socialising, carrying out transactions or providing entertainment’; points out that many of the technologies referred to as ‘virtual worlds’ have existed for years; underlines that a future European strategy should be anchored in research, scientific evidence and societal relevance;
3. Stresses the key importance of promoting standardisation and interoperability for the full development of an ecosystem of interconnected virtual worlds;
An appropriate ethical and legal framework
4. Stresses that virtual worlds accessible in the EU should respect ethical values, principles and fundamental rights enshrined in the Charter of Fundamental Rights of the European Union and existing EU legislation, namely on data privacy, security and safety standards, data sharing, content moderation, the fight against harassment and hate speech, cybersecurity, workers’ rights, consumers’ and child protection, accessibility requirements, respect for intellectual property rights, the protection of know-how and trade secrets, the prevention of online abuse and fraud, and on contestable and fair markets;
5. Recalls that virtual worlds should be developed and deployed in line with the general principle that what is illegal offline should be illegal online, ensuring that people’s rights, with a strong focus on children, as users, consumers, workers, investors, rights holders and creators are fully respected;
6. Points out that, in particular, the following pieces of legislation already apply to different aspects of virtual worlds: the Digital Services Act; the Digital Markets Act; the Data Governance Act; the Data Act; the proposed AI Act; the General Data Protection Regulation (GDPR); the General Product Safety Regulation; the Unfair Commercial Practices Directive; the Markets in Crypto-Assets Regulation; European Digital Identity; the Directive on Copyright in the Digital Single Market; the Regulation on the EU Trade Mark; the Directive on the Protection of Trade Secrets; the European Accessibility Act; and the Web Accessibility Directive;
7. Highlights the importance of regularly monitoring compliance and ensuring effective enforcement of the applicable legal instruments in force; calls on the Commission to develop guidelines and best practices, in cooperation with different stakeholders, including representatives from civil society and consumer protection organisations, as well as academia, clarifying the legal obligations and responsibilities of each stakeholder involved in virtual worlds, such as platform operators, service providers, developers and users, under the applicable EU law;
8. Underlines that it is paramount that the Commission conducts regular fitness checks of the applicable legal instruments in force, namely regarding a possible review of the Unfair Commercial Practices Directive, Consumer Rights Directive and the Unfair Contract Terms Directive, and stresses that any future legislation on virtual worlds should avoid overlaps or inconsistencies, while filling gaps where needed;
9. Notes that some regulatory issues are nonetheless already apparent in the fields of private international, civil and intellectual property law, as specified in the sections below;
10. Highlights that recent research has shown that VR sensor data is as uniquely identifiable as a fingerprint scan and can be used to gain deep insights into users’ personality and infer a variety of attributes such as age, gender, income, ethnicity, disability status, state of mind and emotions; believes that this raises significant ethical and legal concerns, in particular in connection with targeted behavioural advertising, that should be addressed; stresses that part of addressing these ethical concerns around the collection of vast amounts of personal data, including sensitive user data such as biometric and behavioural data, emotional reactions and haptic information, is to guarantee that users are aware of the data being collected and that consent for the collection of such data is not obtained only at the time of entry to the virtual world, but for each use case in line with the principles laid out by the GDPR, such as those of privacy by design and purpose limitation;
11. Stresses that, wherever the user’s identification is not required by Union or national law, namely for liability purposes, and it is technically possible and reasonable, virtual worlds should enable the anonymous use of services as a way of providing a protective shield for privacy and effectively prevent unauthorised data disclosure, identity theft and other forms of abuse of personal data collected online;
12. Notes, in this regard, that the actions put forward by the Commission in its communication aimed at raising awareness, improving digital skills and literacy and increasing users’ access to key technologies, namely by facilitating access to high-speed internet infrastructure and adequate equipment, are crucial to avoid digital divides and should be implemented as swiftly as possible in order to promote an inclusive and competitive digital society and to ensure that no one is left behind in this rapid technological development;
Private international law
13. Stresses that certain traditional territorial principles on applicable law and jurisdiction might prove inadequate to virtual worlds, whose non-territoriality is enabled by the use of decentralised technologies such as blockchain, and give rise to problems when it comes to ensuring the applicability of EU law and the protection of the rights of consumers and businesses;
14. Notes more specifically that, since anyone anywhere in the world can access virtual worlds, the ‘mosaic criterion’ established by the Court of Justice of the European Union, by which the injured party may seek compensation in the courts of the countries where at least a part of the harm occurred, might not hold; recalls, however, that the Court established an additional criterion whereby injured parties can claim compensation through the courts of the country in which they have their main interest and affirms that the codification of this criterion into the Brussels I Regulation could be considered;
15. Observes that the definition of ‘consumer’ in the Brussels I Regulation is currently based on a direct contractual relationship, which is missing for instance between the issuer of a non-fungible token (NFT) and the purchaser when the NFT is put on a secondary market; notes that, consequently, in the event of a dispute with the issuer, the final purchaser would be deprived of the jurisdictional treatment that the Brussels I Regulation grants to consumers;
16. Calls on the Commission to take into account these and other potentially problematic situations and to assess the appropriateness of the existing provisions of private international law applicable in the EU, proposing appropriate amendments, where necessary, to guarantee that citizens and businesses do not have to systematically litigate in foreign courts or under foreign laws in order to enforce their rights, thus making sure that their rights under the EU regulatory framework are fully guaranteed, while bearing in mind the risk of forum shopping, in particular on the part of non-EU companies;
Civil law
17. Notes that the number and economic relevance of commercial transactions within virtual worlds is expected to increase over the next decade; stresses the need, in this context, to ensure that providers of virtual goods and services can be identified and held liable for any harm caused by their products;
18. Points out the concerns raised by the advertising techniques used when selling so-called virtual real estate, such as a building or a piece of land in a virtual world represented by an NFT, as users might be led to believe that they are actually acquiring property rights, when, in practice, they only obtain a licence to use the virtual ‘land’; emphasises the importance of ensuring that the applicable terms and conditions are transparent, clear, fair and easy to understand, particularly as it has been shown that users often fail to read terms and conditions due to their dense and technical nature;
19. Recalls that liability rules should fully apply to virtual worlds and underlines the importance of putting in place effective measures to prevent and address any form of harmful behaviour and enforce the law in line with fundamental rights in virtual worlds, including, where appropriate and without prejudice to the right of seeking judicial redress, the establishment of reporting and dispute resolution mechanisms;
20. Is concerned that the use of avatars and decentralised systems, such as those built on blockchain technology, might make it extremely challenging to hold tortfeasors accountable; considers that the implementation of effective identity management systems is key in order to allow for their proper and timely identification and to combat fake identities, also taking into account the specificities linked to the governance of decentralised autonomous organisations (DAOs) and to collective liability; welcomes in this regard the Commission’s intention to study the added value of a possible legal framework for DAOs;
21. Recalls that avatars do not have legal personality so any issues regarding their legal capacity, rights, obligations and liabilities needs to be addressed with reference to the natural or legal persons using them; considers that, as virtual worlds evolve and become more complex, consideration should be given to the appropriateness of granting a specific legal status to avatars; considers that the avatar or the person behind the avatar should be identifiable and a know-your-business-customer principle should be applicable;
Intellectual property law
22. Underlines that the body of EU law on the protection of intellectual and industrial property rights, including copyrights, trademarks, patents, designs and trade secrets, fully applies to virtual worlds; stresses nevertheless that the development of virtual worlds poses new challenges when it comes to intellectual property enforcement, identification of infringers and issues concerning the conflict-of-law rules on applicable law and jurisdiction;
23. Recalls that platforms operators, service providers and users in virtual worlds are under the obligation to respect right holders’ exclusive rights and their right to fair remuneration; highlights that the use of content protected by intellectual property rights (IPR), including in digital form in an electronic medium, such as an NFT, requires authorisation through licensing or assignment, unless it is covered by any exception or limitation to IPR protection (such as private copy, education, research, quotation, review, parody or pastiche); reiterates the importance in this regard of providers ensuring transparency as to the scope of licences, including territorial licences, so as to ensure that users are able to determine what uses of IPR-protected content in virtual worlds are covered by the licences they hold and that creators and right holders are able to receive accurate and proper reporting on the actual use of protected works;
24. Welcomes the update brought about by the twelfth edition of the ‘Nice classification’, which allows for the registration of trademarks in classes covering their use in virtual worlds; calls for a close follow-up on the concrete application of this classification; is, however, concerned about the use of NFTs referencing trademarks without the authorisation of their owners and calls for effective measures to be implemented to address these and other cases of infringement; welcomes in this regard the Commission proposal to develop a toolbox to fight counterfeiting;
25. Acknowledges the applicability of liability rules as laid down in the Digital Services Act and of the special regime established in Article 17 of the Copyright Directive to cover the uploading of user-generated content; believes, however, that further clarification is needed on how existing rules should apply to online content-sharing services that make content available in virtual worlds and how they should be enforced;
26. Stresses that NFTs do not grant any IPR as such on the digital asset and signals the need for further clarity and transparency in order to avoid fraud and the frequent confusion between the right to the token itself and the right to the underlying protected content;
27. Notes that NFTs and other blockchain-based offers facilitate the continuous resale of assets based on copyright-protected works through online transactions and believes that appropriate and proportionate remuneration of authors for each resale of such assets needs to be ensured;
28. Recalls that, under the current rules, the outputs autonomously generated by AI systems might not be eligible for copyright protection, as the principle of originality is linked to a natural person and the concept of ‘intellectual creation’ presupposes the author’s personality; recalls, further, the difference between AI-assisted human creations and outputs autonomously generated by AI; recalls that, while the current intellectual property framework remains applicable to AI-assisted creations , outputs autonomously generated by AI create new regulatory challenges for intellectual property rights protection, such as questions of ownership, authorship and inventorship, as well as appropriate remuneration and issues related to potential market concentration; welcomes the commitment set out in the IP Action Plan for the Commission to engage in stakeholder discussions on how to address the challenges raised by AI-assisted inventions and creations; calls on the Commission to consider broadening the scope for this dialogue in order to largely cover AI-related issues, including generative AI;
Accessibility and digital literacy
29. Emphasises that virtual worlds may provide opportunities for the provision of public services of general interest, to the wider benefit of citizens; underlines, however, that inclusion of and accessibility for all users in the EU must be ensured both in terms of cost and use of hardware and the understanding of software; notes that accessibility is particularly important when it comes to ensuring that vulnerable population groups such as elderly people, persons with disabilities, children and people living in rural and remote areas acquire the essential digital skills to participate in virtual worlds and should take into consideration aspects such as geographical location, gender, level of educational attainment and socio-economic background;
30. Adds, in this context, that digital literacy is of the utmost importance to ensure a safe and socially beneficial uptake and informed and responsible use of virtual worlds, to avoid user addiction, bias and discriminatory practices, to tackle disinformation, manipulation and abuse in the virtual environment and to promote democratic control;
31. Highlights the need to put in place effective educational measures to ensure broad literacy in relation to the virtual world among citizens and to upskill professionals in different fields, namely teachers, and to encourage and promote the development of European talent and technologies, while attracting more people, including more women, into science, technology, engineering and mathematics;
32. Recommends that the ‘virtual worlds toolbox’ intended for the general public, as outlined in the Commission communication, be developed further, in line with the recommendations of the Citizens’ Panel in order to help citizens better understand how to manage their virtual identities, their virtual creations, their virtual assets and their data, and to contribute to a comprehensive EU strategy for virtual worlds that is both sustainable and human-centric;
33. Welcomes, as noted by the Commission, the positive contribution of the EU open-source community in developing key features of virtual worlds, such as in relation to the use of distributed ledger technology and other technologies needed for the authenticity, management and security of virtual objects and identities;
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34. Instructs its President to forward this resolution to the Council and the Commission.
EXPLANATORY STATEMENT
This report acknowledges the growing economic, social and even political importance of virtual worlds.
Given the early stage of their development, in light of the outcome of the work of the Citizens’ Panel on Virtual Worlds, and taking account of the Commission’s Communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’, this report outlines the main legal issues posed by virtual worlds.
This effort is meant both to indicate to the Commission the need to examine possible legal issues that are not addressed in its Communication and to serve as a basis for future work for the Parliament in the next legislature.
After welcoming the definition of ‘virtual worlds’ delineated by the Commission in its above mentioned Communication, the Report assert the need for an ethical and legal framework for this new technology and analyse the most problematic aspects that fall within the competence of the Committee on Legal Affairs, namely in the areas of private international law, civil law and intellectual property law.
These issues, although scattered across different legal domains, present common features: the technologies underpinning virtual worlds, and in particular the decentralised nature of blockchain and of non-fungible tokens (NFTs), are either incongruous with some of the concepts and principles traditionally at the heart of the Union legal acquis, like the territoriality of the provisions on applicable law and jurisdiction, or severely hinder the enforcement of Union law, as is the case with the protection of intellectual property rights and the identification of infringers or tortfeasors.
The Report, moreover, expresses concerns about the lack of transparency that characterises the marketing of NFTs and note that, for instance, the expression ‘virtual real estate’, sometimes used in this context, is susceptible to make consumers mistake the licence agreement they are concluding for the acquisition of an actual property right.
In order to ensure a safe and socially beneficial, inclusive and affordable uptake and informed use of virtual worlds and to promote democratic control, legislation alone is not sufficient. The Report therefore concludes by recalling the importance that accessibility, public services and digital literacy play for a human-centric digital transition, in which every citizen can benefit from access to this new technology, no one is left behind and the values, principles and fundamental rights of this Union are upheld.
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEURS HAVE RECEIVED INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, co-rapporteur Axel Voss declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:
Entity and/or person
Federation of European Sporting Goods Industry
Telekom
International Trademark Association
European Writers Council
Institute for Competitiveness
International Federation of the Phonographic Industry
Motion Picture Association
Epic Games
Gesac
European Crypto Initiative
Video Games Europa
Metaverse EU
Global Counsel
The list above is drawn up under the exclusive responsibility of the rapporteur.
Pursuant to Article 8 of Annex I to the Rules of Procedure, co-rapporteur Ibán García Del Blanco declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:
Entity and/or person
XR Assotiation
Snapchat
Nokia
Improbable
FleishmanHillard
FTI consulting
NVIDIA
Telefonica
Meta
Amazon
IBM
Microsoft
ISFE
Bolt
ITI
Amcham
XR4EU
Euromersive
TheLisbonCouncil
Acumen Public Affairs
Metaverse EU
CredoAI
Berkeley University
OpenAI
Oracle
Roblox
Google
Stanford University
German Accelerator
INTA
GESAC
SONY Digital
Federation of the European Sporting Goods Industry (FESI)
EU Crypto Initiative
Metaverse Society
M2
The list above is drawn up under the exclusive responsibility of the rapporteur.
INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE
Date adopted
11.12.2023
Result of final vote
+:
–:
0:
15
1
2
Members present for the final vote
Ilana Cicurel, Ibán García Del Blanco, Pierre Karleskind, Sergey Lagodinsky, Maria-Manuel Leitão-Marques, Karen Melchior, Sabrina Pignedoli, Jiří Pospíšil, Franco Roberti, Raffaele Stancanelli, Axel Voss, Marion Walsmann, Tiemo Wölken, Javier Zarzalejos
Substitutes present for the final vote
Alessandra Basso, Pascal Durand, Antonius Manders
Substitutes under Rule 209(7) present for the final vote
Caroline Roose
FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
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