Hermes victory and Yuga Labs settlement in NFT lawsuits

Walmart’s metaverse trademark filings, NFTs as mainstay in IP business, plus more top stories

🎥 Metaproof Media, Entertainment, IP

Hey friends, this is Sophia from 🎥 Metaproof Media, Entertainment, IP, the weekly newsletter where we keep you informed on how the metaverse and web3 are changing the media, entertainment, and IP industry.

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💌 A quick thanks to our friends…

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📲 By the numbers

Digital media in the metaverse is bringing a lot of potential to the market as one pillar of the overall consumer experience. Some of the findings: (Source)

  • Revenue in the metaverse digital media segment is projected to reach $137.60M in 2023.

  • Revenue is expected to show an annual growth rate (CAGR 2023-2030) of 13.22%, resulting in a projected market volume of $328.10M by 2030.

  • With a projected market volume of $188.10M in 2023, most revenue is generated in the United States.

  • In the metaverse digital media segment, the number of users is expected to amount to 3.9M users by 2030.

  • The average revenue per user (ARPU) is expected to amount to $54.92.

📫 News & trends

The much-publicized lawsuit between Hermès International SA and digital artist Mason Rothschild over the sale of MetaBirkin NFTs has come to a conclusion, with the jury ruling in favor of Hermès and awarding the company $133,000 in damages. Here’s what we know so far:

  • The jury found that Rothschild's NFTs were not protected speech under the First Amendment, a decision that could influence pending and future NFT cases that test the line between art and consumer products. Rothschild had argued that his NFTs were works of art protected by the First Amendment.

  • The verdict raises important questions about the role of NFTs in the art world and the extent to which they can be regulated, finding a balance between protecting the rights of artists and safeguarding the interests of established brands.

  • Physical Birkin bags range in price from $12,000 to close to $200,000. Rothschild first sold the NFTs for around $450 each, but their resale value skyrocketed to tens of thousands of dollars.

Stay tuned for further updates on this case and its impact on the NFT landscape.

Walmart, the world's largest retailer, is taking steps to embrace the metaverse by recently filing several new trademarks to promote digital assets across its products and services, including NFTs, blockchain, virtual reality healthcare, and crypto trading. The recent trademarks will push its Sam’s Club brand and logo.

Prior to this major move, Walmart has already made strides in augmenting its customer shopping experience, launching an augmented reality smartphone service: the Be Your Own Model app, which creates real-time 3D (RT3D) digital assets to allow customers to try on clothing before going to the store. In January, the retail giant also revealed filing for initial metaverse trademarks for extended reality retail experiences to back cryptocurrencies, NFTs, and digital content.

In a case that highlights the need for clear guidelines and regulations in the NFT space, particularly around IP and trademark rights, a recent settlement has been reached between Yuga Labs and Thomas Lehman, who built websites and smart contracts for Ryder Ripp’s copycat project “RR/BAYC” or a take on the Bored Ape Yacht Club NFT project. The details:

  • The settlement bars Lehman from using “any manner any BAYC Mark” and requires him to destroy “any materials in his possession or control publicly displaying the BAYC Marks” as well as burn any RR/BAYC NFT he owns.

  • It’s far from over, though, as Ryder Ripps has filed an anti-SLAPP motion, arguing that his project is protected by free speech as a work of satire. Ripps’ team has also filed counterclaims against Yuga Labs.

  • Yuga Labs told CoinDesk: “[C]reators, especially those in the nascent web3 space, must be able to rely on the law to protect their work against IP theft.”

The National Football League (NFL) is taking its pre-game experience to the metaverse, teaming up with gaming powerhouse Roblox to host a virtual concert with hip-hop artist Saweetie as well as launch Super NFL Tycoon within the platform. The virtual concert will take place in Warner Music Group's Rhythm City on Roblox, and fans will be able to enjoy Saweetie's hit songs and obtain digital items on the Roblox marketplace or win items by completing challenges.

The NFL’s foray into the metaverse highlights the league’s ongoing attempt to cater to a younger demographic. Roblox reported that its third quarter saw the fastest year-over-year growth in daily active users ranging from 17 to 24 years old, which saw an increase of 41%. Its daily active users that are older than 13 years old grew by 34% year-over-year and accounted for 54% of all daily active users.

Data from South Korea's Korean Intellectual Property Office has revealed that China is now the second largest country in terms of metaverse-related patent applications, with a nearly 30% share gathered through its 14,291 applications. It trails the United States, which has filed 17,293 applications or nearly 36% of the total covering 2011 to 2020.

This trend suggests that the Asia-Pacific region is likely to see the development of several local online worlds, providing new opportunities for businesses and consumers alike. The Chinese government has also taken notice of the potential for the metaverse and has released a plan to grow the market size of China's VR industry beyond 350B yuan ($50.4B) by 2026.

Launching an apparel store and night club in VR, Celebverse - the first and only virtual world themed Adam & Eve - aims to make anyone a native of the state-owned digital city that serves as a hub for international celebrities, brands, and users. On the platform, 100 virtual and physical plots of land have been reserved exclusively for celebrities worldwide.

Through a virtual fitting room, Apparel Store will help customers to try on garments for all sizes, fits, colors and styles per their avatar, with the technology adjusting textures to fit body types and help increase user confidence and engagement in the virtual fashion store. Night Clubs have a 360-degree video dance floor and will allow users to customize the ambiance - sound, music, and lights - based on their taste and preferences.

The rise of NFTs has sparked a revolution in the way creators, companies and artists protect, promote, and monetize their IP. Intellectual property is a critical component of the American economy, accounting for more than 41% of the country's GDP and employing one-third of the workforce. The growth and development of the NFT market could therefore have far-reaching implications for the future of this industry. Some current enforcement of IP rights include:

  • Yuga Labs sued copyist artist Ryder Ripps for trademark infringement

  • Nike alleges that StockX infringed its trademark by creating NFTs without permission

  • The Creative Commons license (CC0), which allows unlimited reuse of works, is gaining popularity

  • Writs using NFTs have been issued, and use cases for counterfeiting are under development

🏃‍♂️Quick hits

  • On February 10, K-pop group MONSTA X teams up with iHeartRadio for its very own metaverse concert, iHeartRadio LIVE with MONSTA X, to be held at iHeartLand's State Farm Park in the games Roblox and Fortnite.

  • Singing competition The Voice, known for its blind auditions and celebrity coaches, is making its way into the metaverse. In The Voice VIP Superverse, attendees compete in a Decentraland exclusive musical game overseen by four new metaverse coaches, where they award one-of-a-kind NFT merchandise to winners each day.

  • The metaverse is the future of all digital media, declares Rob Gilby, CEO of integated marketing agency Dentsu APAC as he spoke on “Creating Value in the Web3 Digital Economy” at the unveiling of the Dentsu-e4m Report in Mumbai, India.

  • Meet Planetary Metaverse, a virtual 3D world where people as avatars can meet in real time, host live events on Lands (streaming), and play. The app provides easy tools for users and well-known social media solutions with an advanced 3D environment.

  • Ticketmeta announced the first Venice Carnival, set for February 18, followed by its metaverse event on February 26. The Venice Carnival will include an overlap of ancient cultures, costumes, colors, intrigue, and the aura of a romantic masquerade, while shedding light on the male-dominated crypto industry and the emerging projects and startups that are launching at exponential rates.

💸 Finance buzz

  • Senrama Interactive launched its new metaverse entertainment studio, building a location-independent team of creators, writers, coders, and game designers and leveraging technologies such as blockchain finance solutions, AI, and 3D world engines to create a blockchain portal, games and story content distributed via PC, mobile/desktop media, applications and web3. (Source)

  • ATTA Protocol, a MixMarvel DAO Venture's invested project, has been building a web3-native content creation platform and a next-gen entertainment metaverse for the film industry. (Source)

🗣️ Quote of the week

“The metaverse is the next frontier of technology and entertainment, providing endless opportunities for exploration, collaboration, and growth.”

 

Noxr, founder of Ureka Lab

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All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse.

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