As luxury brands continue their foray into immersive digital environments, from virtual fashion weeks to avatar-exclusive collections, the question of how to effectively protect intellectual property (IP) in the metaverse has become a pressing legal concern. The growing presence of high-end goods and services in virtual spaces has ignited a wave of trademark filings in particular, and in turn has sparked complex questions around scope, jurisdiction and enforcement.

While the early metaverse trademark strategies focused on protecting logos and product names for tangible goods, many brand owners now recognise the commercial and reputational importance of securing rights for their digital counterparts. For luxury businesses where brand equity is paramount, the metaverse poses unique risks and opportunities that traditional IP frameworks are still adapting to accommodate.

A new frontier for luxury IP

The luxury sector has been a first mover in the virtual economy. From Gucci’s immersive Roblox experience to Louis Vuitton’s digital avatar skins, high-end labels are actively shaping what premium means in the digital world. But with innovation comes risk. Without robust IP protection, these virtual offerings are vulnerable to counterfeiting, misuse and dilution – threats that luxury brands have long battled in the physical world, and which are now re-emerging in the metaverse.

Critically, the trademark offices of both the UK and EU have issued classification guidance recognising “virtual goods” as digital content proper to Class 9, regardless of their real-world equivalent. For example, “virtual trainers” must be filed under Class 9 rather than the traditional Class 25, which applies to physical goods. Services provided through the metaverse – such as “education” – may fall into the same classes as their offline counterparts, so long as the service is functionally equivalent.

This guidance offers some clarity, but also presents a strategic imperative: brand owners must review and, where necessary, update their trademark portfolios to include digital classifications.

Beyond classification: enforcing virtual rights

Filing is just the beginning. In practice, enforcing trademark rights in virtual spaces remains an unsettled area of law. Many metaverse platforms, being decentralised, user-driven and globally accessible, do not fit neatly within existing enforcement models.

Luxury brands must contend with issues such as platform liability, user-generated content and jurisdictional ambiguity. Should a virtual bag bearing a third party’s logo be regulated under the laws of the user’s country, the platform’s home jurisdiction or the location of the rights holder? In the absence of unified standards, rights holders often face a patchwork of legal and procedural options, none of which may offer immediate or comprehensive protection.

Some platforms may be able to utilise the “hosting defence” under the Electronic Commerce (EC Directive) Regulations 2002, insulating them from liability provided they act swiftly upon notice of infringement. But enforcement remains resource-intensive, particularly given the sheer scale of user-generated content in immersive spaces.

This makes proactive monitoring and collaboration with platform owners increasingly important. As the metaverse grows, brand owners must remain proactive by staying informed about developments in the space, utilising new technologies to monitor their trademarks, and working with legal experts who specialise in the intersection of virtual environments and IP.

When real and virtual worlds collide

Several recent cases underscore the need for luxury brands to adapt their trademark strategies to virtual realities. In the EUIPO case concerning Glashütte ORIGINAL, the General Court affirmed that consumers would likely view virtual watches as a natural extension of their physical counterparts, and that trademark perceptions would carry across both realms. The court’s reasoning reflects a growing recognition of the metaverse as an economically significant and brand-relevant environment.

Elsewhere, disputes have arisen where digital re-creations of well-known goods – such as fashion items or sportswear – have appeared in virtual spaces without brand owner authorisation. These unauthorised uses, even when positioned as artistic or creative reinterpretations, have raised legal concerns around misrepresentation, consumer confusion and dilution of brand value.

In Italy, for example, the courts recognised the broad protection afforded to a football club’s brand elements when those assets were used in a digital setting, even though the trademarks were only registered for physical products. This points to a judicial willingness to treat virtual brand misuse with the same seriousness as real-world infringement – particularly for brands with significant reputation and consumer recognition.

Such cases demonstrate that courts and trademark offices are prepared to apply established legal principles to emerging digital scenarios. However, they also highlight the importance of securing trademark registrations specifically tailored to virtual goods and services, rather than assuming that physical-world rights will offer sufficient coverage in the metaverse.

Strategic considerations for luxury brands

For luxury businesses operating in or entering the metaverse, a few core takeaways are emerging:

Audit existing IP portfolios – Ensure that trademarks are filed for relevant virtual goods and services, including across platforms where the brand does not yet have a presence.

Actively monitor virtual environments – Use technological tools and platform partnerships to detect unauthorised use and counterfeiting early.

Leverage trademark licensing – The metaverse offers new avenues for brand monetisation through digital licensing and collaborations, but clear contractual terms and trademark coverage are essential.

Prepare for cross-border enforcement – In the absence of harmonised regulation, work with advisors to develop a flexible and jurisdictionally sensitive enforcement strategy.

Looking ahead

As courts, offices and platforms continue to grapple with the legal implications of virtual commerce, the importance of a tailored, forward-looking approach to trademark protection cannot be overstated. For the luxury sector in particular, where brand image and exclusivity are key to consumer appeal, virtual environments offer both fertile ground for growth and novel challenges to brand control.

While the metaverse may still be in its early stages, the legal frameworks governing it are beginning to take shape. In the meantime, brand owners must act decisively to protect their digital identities before the lines between the real and virtual worlds become too blurred to manage.

Claire Evans is a senior associate and chartered trademark attorney at Mewburn Ellis.