On policy implications of the development of virtual worlds – civil, company, commercial and intellectual property law issues
A-9-2023-0442
Committee on Legal Affairs · Rapporteur: Axel Voss, Ibán García Del Blanco
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Parliament's resolution on the legal policy implications of virtual worlds covers civil, company, commercial and intellectual property law. It welcomes the Commission's definition of virtual worlds and calls for an ethical and legal framework grounded in existing EU law.¶¶¶ It asks the Commission to monitor compliance, issue guidelines on stakeholder responsibilities, and run fitness checks on consumer law. It flags problems in private international law, civil law and intellectual property law.¶¶¶ It calls for anonymous use where possible, protection of biometric and behavioural data, and measures on accessibility, digital literacy and public services so no one is left behind.¶¶¶
Committee position. The Committee on Legal Affairs proposes that Parliament adopt the resolution, welcoming the Commission's definition of virtual worlds and calling for an ethical and legal framework, with action on private international law, civil law, intellectual property, accessibility and digital literacy.¶¶¶
Key points
- Notes that 'metaverse' and 'virtual world' lack consolidated definitions, welcomes the Commission's definition, and stresses standardisation and interoperability for interconnected virtual worlds.¶¶¶
- Says virtual worlds accessible in the EU must respect the Charter of Fundamental Rights and existing EU law on privacy, security, content moderation, workers' and consumers' rights, child protection, accessibility and intellectual property.¶¶
- Lists legislation already applying to virtual worlds, including the Digital Services Act, Digital Markets Act, Data Governance Act, Data Act, proposed AI Act, GDPR, General Product Safety Regulation and Markets in Crypto-Assets Regulation.¶
- Calls on the Commission to develop guidelines and best practices clarifying the legal obligations of platform operators, service providers, developers and users, and to run fitness checks on consumer law instruments.¶¶
- Says VR sensor data is as uniquely identifiable as a fingerprint scan and that consent should be obtained for each use case, not only at entry, in line with privacy by design and purpose limitation.¶
- Says virtual worlds should enable anonymous use where identification is not required by law and technically possible, and that Commission actions on digital skills and access to key technologies should be implemented swiftly.¶¶
- Stresses that territorial rules on applicable law and jurisdiction may be inadequate for virtual worlds, and calls on the Commission to assess private international law provisions and propose amendments where necessary.¶¶¶
- Says providers of virtual goods and services must be identifiable and liable for harm, that terms for virtual 'land' must be transparent, and that liability rules and dispute resolution mechanisms should apply in virtual worlds.¶¶¶
- Is concerned that avatars and decentralised systems make accountability hard, considers effective identity management key, and says avatars lack legal personality so issues must be addressed with reference to the persons using them.¶¶
- Underlines that EU intellectual property law fully applies to virtual worlds, that use of protected content including in NFTs requires authorisation, and that licence scope and reporting must be transparent.¶¶
- Welcomes the twelfth edition of the Nice classification for trademark registration in virtual worlds, is concerned about NFTs referencing trademarks without authorisation, and says NFTs grant no intellectual property rights as such.¶¶
- Notes that outputs autonomously generated by AI might not be eligible for copyright protection, and calls on the Commission to broaden stakeholder dialogue to cover AI-related issues including generative AI.¶
Who is affected
- Platform operators, service providers, developers and users in virtual worlds, whose legal obligations and responsibilities the Commission should clarify.¶
- Consumers, who should be protected from misleading marketing of virtual real estate and unclear terms and conditions.¶
- Authors, creators and right holders, who should receive fair remuneration and accurate reporting on use of protected works.¶¶
- Vulnerable groups such as elderly people, persons with disabilities, children and people in rural and remote areas, for whom accessibility and digital skills must be ensured.¶
- Citizens and professionals, who should benefit from educational measures and the 'virtual worlds toolbox' to manage virtual identities, creations, assets and data.¶¶
Figures and deadlines
- 10 to 15 years: the time experts say it might take for virtual worlds to reach their full potential.¶
Legal basis: Articles 4, 16, 26, 81, 114 and 118 of the Treaty on the Functioning of the European Union.¶