What is the metaverse? When it comes to it, some people may think of Neal Stephenson’s novel Snow Crash, some may think of Steven Spielberg’s movie Ready Player One.

In 2021, Facebook founder Mark Zuckerberg announced that the company would change its name to Meta and fully enter the metaverse. The popularity of the metaverse was thus pushed to a climax. Nowadays, Meta’s investor Brad Gerstner said: “The public is confused about the exact meaning of the metaverse concept.” In fact, we can roughly say the origin and theory of the metaverse, and even count some hot events, but what can it bring us? No one has the answer.

It is undeniable that in the time of the rise of the metaverse, industries based on immersive computing, WEB3.0, and new infrastructure technologies have risen with the trend, and the industry has continuously output patents to help the metaverse concept become clearer, and the related policy construction of the metaverse has emerged one after another. Although the intellectual property wars that the metaverse cannot avoid are also burning in sync. But we believe that in the future, the metaverse will definitely have a broad development prospect and potential.

Ambition Lies in Diversified Applications

Although the development of the metaverse is still in its infancy, in the innovation wave of technology-driven and practice-oriented, the metaverse also has many positive landing scenarios in different industry sectors such as industrial production, health care, finance, entertainment and education.

1.1 Industrial metaverse

In fact, many enterprises at home and abroad have actively tried to use metaverse technology to reduce costs and increase efficiency. Midea Group fully uses simulation systems and digital twin technology to build a one-to-one virtual digital factory. Through this system, they can simulate the production process in a virtual environment, thereby greatly improving the efficiency of new product trials, and shortening the product launch cycle. Microsoft has established an “industrial metaverse core team” to provide power industrial control systems for applications such as industrial robots, and Microsoft’s move has injected new technological vitality into the industrial metaverse. In addition, BMW also actively uses the virtual collaboration platform Omniverse to plan the construction of virtual factories and bring greater economic benefits to the company.

1.2 Health metaverse

When “health” becomes a topic of conversation after tea and dinner, the metaverse decodes the infinite possibilities of health care. The UAE National Health Service System has opened a new chapter in the health metaverse, establishing the world’s first metaverse health care platform. There are also AR transparent optical devices that can project 3D images of patients’ spines onto the retina of surgeons to assist surgery. And in China, Huashan Hospital’s neurosurgery metaverse mixed reality medical solution is at the forefront of application. In January 2022, the first “metaverse” high-difficulty keyhole skull base surgery was successfully performed at the National Center for Neurological Diseases, marking the official launch of Huashan Hospital’s neurosurgery metaverse technology.

According to the China Metaverse Industry Research Report 2023, as of July 2023, the total number of authorized patents of metaverse enterprises in China reached 23,851, including 16,003 invention patents, 6,259 utility model patents, and 1,589 design patents.

The metaverse is a product of multiple technologies, and its patents also have multiple branches. In the Key Digital Technology Patent Classification System (2023) released by the National Intellectual Property Administration, the metaverse technology is divided into three first-level technology branches, with 13 second-level technology branches, 45 third-level technology branches, 79 fourth-level technology branches, and 54 fifth-level technology branches, totaling 194.

The metaverse patent technology branches are numerous and fine-grained, and to understand them more concisely, they can be roughly divided into two levels: software and hardware.

1.3 Financial Metaverse

In the financial sector, metaverse technology is becoming an important tool for driving innovation and enhancing user experience. Firstly, the trading of digital assets in the form of NFTs has enriched the operation of the financial metaverse. Financial institutions such as Agricultural Bank, Postal Savings Bank, China Everbright Bank, Huaxia Bank, Bank of Beijing, and Xi'an Bank have entered the market for NFT digital collectibles. Secondly, financial institutions are introducing digital virtual humans to optimize services and streamline business processes, leveraging metaverse technology to enhance user experience. Foreign financial institutions in countries such as the United States, South Korea, and France are providing services to customers in virtual spaces, while domestic banks like Baixin Bank have launched virtual digital employees like AIYA Aya to engage in immersive interactive communication with users.

1.4 Entertainment and Education Metaverse

For many audiences, "Ready Player One" was their first glimpse into the metaverse. The applications of the metaverse in entertainment and education are particularly numerous. There are immersive experiences like Zhangjiajie Planet, which uses XR integration and interactive technology to offer an immersive view of the metaverse's myriad wonders, and the China Grand Canal Immersive Museum, which brings to life the past and present of China's Grand Canal. There are also examples like the Smart Learning Center Metaverse constructed by Shanghai Open University, which integrates online and offline scenarios, and the International Chinese Language Education Metaverse jointly developed by East China Normal University and Shanghai Sanda University. Additionally, some schools in Japan and the United States allow remote classes in virtual campuses through head-mounted VR devices.

From the buzz around the concept of the metaverse to the attempted implementation of scenario applications, the metaverse offers endless possibilities for industrial innovation and development. So, what exactly is the metaverse technology that supports the implementation of these scenarios?

Entering the Metaverse: Multi-Dimensional Technologies Supporting Patent Innovation

According to the "2023 China Metaverse Industry Research Report," as of July 2023, the total number of authorized patents for metaverse enterprises nationwide reached 23,851, including 16,003 invention patents, 6,259 utility model patents, and 1,589 design patents.

As a product of multiple technologies coming together, the metaverse also has multiple branches in patent categories. In the State Intellectual Property Administration's recently released "Classification System for Key Digital Technology Patents (2023)," metaverse technology is divided into three first-level technology branches, with 13 second-level technology branches, 45 third-level technology branches, 79 fourth-level technology branches, and 54 fifth-level technology branches, totaling 194.

With numerous and meticulous patent technology branches in the metaverse, for a simpler understanding, they can be broadly categorized into two levels: software and hardware.

The software level encompasses technologies related to virtual reality, augmented reality, mixed reality, artificial intelligence, blockchain, and more, which enable the creation, operation, and interaction within the metaverse. These technologies facilitate immersive experiences, digital asset management, virtual event hosting, and AI-driven innovations within the metaverse.

The hardware level involves technologies supporting the development and implementation of metaverse infrastructure, including advanced display devices, sensors, haptic feedback devices, and other wearable or environment-enhancing technologies. These technologies ensure a seamless and realistic user experience within the metaverse, enabling users to engage with virtual environments and interact with digital objects and other users in a highly immersive way.

The rich diversity of patented technologies within the metaverse underscores the vast potential for innovation and growth in this emerging field. As companies and researchers continue to explore and develop new technologies, the metaverse is poised to transform various industries and reshape the way we live, work, and interact.

2.1 Software level

In the metaverse, software technologies such as computing power, algorithms, and communication can provide technical guarantees for users to access the metaverse. Currently, blockchain technology and cloud computing technology have the largest share of patents in the metaverse environment.

In different industry sectors, enterprises will apply for metaverse technology patents suitable for their own scenarios. For example, Bank of China Limited applied for a patent for “mobile payment method and device in the metaverse environment”, China United Network Communications Group Co., Ltd. applied for a patent for “credit inquiry method, node, and system based on the metaverse network”, and Huawei also has its own deep layout in the metaverse, with multiple patents in the fields of video playback and image processing.

In addition, scientific research universities are also an important source of metaverse patent applications. A total of 86 universities across the country have laid out metaverse-related patents, such as “metaverse-oriented mobile edge computing method based on privacy protection” applied by Beijing Jiaotong University, and “distributed rendering microservice tool chain and runtime middleware for Unity applications” applied by Harbin Institute of Technology.

2.2 Hardware level

From virtual to real, from concept to reality. Only immersive experience can give us a personal understanding of the metaverse, and AR/VR/MR technology is the cornerstone of experiencing the metaverse.

In the VR/AR Global Invention Patent Ranking TOP100 released by IPRDaily from 2020 to 2021, Internet companies, universities and research institutes, and high-tech companies form three major camps. Among them, Samsung, Tencent, Baidu, Sony, OPPO and others are on the list.

After 2021, the patent application heat of AR/VR/MR has not decreased. For example, BOE Technology Group Co., Ltd. recently obtained a patent authorization for “AR/VR invisible glasses and their manufacturing methods and electronic devices”. Beijing Xiaomi Mobile Software Co., Ltd. disclosed a patent authorization named “mobile payment method and device in virtual reality environment”, and Taiyuan University of Technology announced a “human-machine-XR-cloud device operation and maintenance planning method for the metaverse” and so on.

It is worth mentioning that the proposal of the metaverse patent pool has also been put on the agenda. IPwe metaverse patent pool - Sensor Innovation Center was launched in January 2022, dedicated to promoting the adoption and innovation of metaverse technologies, while protecting the small and medium-sized enterprises and other participants in the metaverse ecosystem. As of March 2022, more than 1,200 related patents have been pooled and continue to increase. In 2023, the first domestic metaverse industry patent pool was launched. The patent pool was led by Beijing IP and Baidu, and signed with four founding enterprise members, namely Rayvision, Ruyi Vision, Nickname Technology, and Lingyu Zhikong, with more than 170 patents in the first batch of pools, of which 53 patents were the first to land and open.

Metaverse Faces Intellectual Property risks that Cannot be Avoided

As one of the hottest topics nowadays, the metaverse brings not only unlimited business opportunities, but also different intellectual property issues that are staged in the metaverse world.

Since Facebook changed its name to Meta and laid out the metaverse, patent disputes have been endless. First, Meta’s haptic gloves were criticized by HaptX, who claimed that their gloves “seem to be substantially the same as their own patented technology”. Then, haptic technology development company Immersion sued Meta, accusing Meta of building the industry-leading virtual reality headset by infringing on its patents.

NFT, as a specific virtual item that accompanies the birth of the metaverse, has also received a lot of discussion about its copyright issues.

In 2021, digital collection artist Mason Rothschild created 100 “MetaBirkins” NFT works that were publicly displayed at the Miami Basel Art Fair and sold on social platforms such as Twitter. Hermès Group claimed that this act constituted an infringement of Hermès’ trademark and brand dilution and took it to court, and the final verdict was that the artist paid Hermès Group $133,000 in compensation.

In May 2022, the word metaverse officially appeared in the judgment, and the so-called “first case of metaverse infringement” in China was officially pronounced. Qice Company holds the popular IP “I’m not Fat Tiger”, and found that some users sold related NFTs on a metaverse platform operated by a certain technology company, so it sued the technology company to court. The Hangzhou Internet Court pronounced in court that the defendant immediately deleted the “Fat Tiger Vaccination” NFT work posted on the platform involved in the case, and compensated Qice Company for economic losses and reasonable expenses totaling 4,000 yuan.

The concept of the metaverse has been hyped up, and the issue of digital works infringement has also become a hot topic of discussion.

Roblox is an online platform for virtual worlds and user-generated content, and its metaverse concept became popular in 2021. But in June of the same year, the National Music Publishers Association filed a digital works infringement lawsuit against Roblox. Several music publishers claimed that Roblox used music in the game without authorization, and the copyright holders demanded more than $200 million in compensation from Roblox. In the end, the two sides reached a settlement to resolve the dispute.

In fact, when entering the metaverse, the use and protection of metaverse patents, the operation and protection of trademarks and copyrights in the metaverse, the digital copyright, wearable devices, and intellectual property layout and litigation rights protection in the metaverse, etc., have become hot topics in the intellectual property industry. To put it bluntly, the operation of the metaverse requires intellectual property to shelter everything.

Facing such a variety of intellectual property issues, service agencies are also actively seeking solutions in response to changes. The China Copyright Protection Center held an “Online Seminar on Metaverse Copyright Protection”, and Wuhan City created the first Metaverse Digital Industry Intellectual Property Service Center in Hubei Province. The person in charge of the Metaverse Digital Industry Intellectual Property Service Center admitted that in the future, they will do a good job in the creation, use, protection, management and service of intellectual property for enterprises in the exploration process.

Intellectual Property in Metaverse Era is Worth Looking Forward to

From 2021 to 2023, the metaverse seems to have come to a fork in the road. On the one hand, many places have introduced metaverse support policies and special plans, and five departments including the Ministry of Industry and Information Technology issued the “Metaverse Industry Innovation and Development Three-Year Action Plan (2023-2025)”, supporting the development of the metaverse from multiple angles such as technology innovation, industry application, and intellectual property protection. On the other hand, the market is cold, and enterprises withdraw from the metaverse track, such as the recent rumor that ByteDance’s PICO plans to lay off employees, or will give up the metaverse.

Regarding the future of the metaverse, an article published on the website of the Central Commission for Discipline Inspection said that the metaverse should be viewed rationally, not underestimating the opportunities in 5-10 years, and not overestimating the changes in 1-2 years. And for the future of intellectual property in the metaverse, different people have different opinions.

Some people think that the virtual and real interweaving of the metaverse will bring about intellectual property ownership and protection issues of user-generated content, digital twin infringement risks of real-world streets and buildings, infringement risks of use and adaptation of real-world works, trademark protection that may extend from the real world to the virtual world, cross-border use of metaverse content facing licensing and authorization, and intellectual property owners having difficulty in defending their rights against metaverse infringement and other issues.

Some people think that the decentralized global operation of the metaverse also brings certain challenges to the ownership, cross-border licensing or transfer, and copyright infringement relief of works, but these new problems can be properly solved by appropriate interpretation of the basic principles of copyright law, the Berne Convention and other rules, and technical solutions, and it is not enough to say that the metaverse will subvert traditional copyright law.

Some people think that the metaverse is a cross-border virtual world, involving multiple countries and regions, and the protection and supervision of intellectual property requires the joint efforts of all parties. The second is the conflict between technological innovation and legal regulation. The rapid technological innovation in the metaverse may not fully meet the needs of the metaverse, and it is necessary to carry out corresponding legal and policy innovation.

In general, no matter what people say, they always have an optimistic attitude towards intellectual property in the metaverse. The metaverse may not really come for decades, but we clearly know that intellectual property will support everything in it, and change with it. We look forward to having intellectual property protection in the development process of the metaverse, and to realize a new world of virtual and real integration.