Protecting Virtual Assets: Understanding Intellectual Property Rights in VR

INTRODUCTION

Imagine that you have created a Virtual Reality experience which is receiving positive reviews. But then all
of a sudden one day you came across a news article where the author is claiming the same VR experience
as their own, taking full credit of it. With the introduction of virtual reality technology, the world has
expanded to new heights. It has opened up endless possibilities for creators, gamers etc. As VR technology
advances understanding its intellectual property rights are essential.

TYPES OF INTELLECTUAL PROPERTY RIGHTS:

 Copyright: A copyright is a type of intellectual property right that gives the creator of an original
work, the exclusive and legally secured right to copy, distribute, adapt, display, and perform a
creative work, for a limited period of time. For example: any software code or virtual environments.

 Patent: A patent is a type of intellectual property right that gives its owner the legal right to exclude
others from making, using, or selling an invention for a limited period of time in exchange for
publishing an enabling disclosure of the invention. For example: VR hardware, software etc.

 Trademark: A trademark is a type of intellectual property right that consists of a recognizable sign,
design, or expression that identifies a product or service from a particular source and distinguishes
it from others. A trademark owner can be an individual, business organization, or any legal entity.
For example: brand name, logo even in virtual world.

 Trade Secrets: Trade secrets are a type of intellectual property right that
includes formulas, practices, processes, designs, instruments or patterns that have
inherent economic value because they are not generally known by others, and which the owner
takes reasonable measures to keep secret. For example: business strategies, VR experiences.
IMPORTANCE OF IPR IN VR

Similar to how Intellectual Property Rights (IPR) protects the exclusive rights of inventors (individuals,
business, or firm) by protecting their innovative creations, literary, artistic works or trade secrets in order
to obtain commercial benefits. The exclusive rights of inventors (individuals, businesses, or firms) are also

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safeguarded. It encourages innovation, creativity, and investment by ensuring VR creators can also gain
monetary benefits and claim legal remedies for infringement, protecting their hard work and reputation.

INFRINGEMENTS OF IPR WITH EXAMPLES OF VR

 Copyright Infringement: It is the use of copyrighted products or materials without the permission
of copyright holder or co-owners. These rights give exclusive use of work for a set period of time.
For example- A VR game developer copies a competitor's game design without permission.
 Trademark Infringement: It is the unauthorized use of words, symbols or signs which are registered
under Trademark Acts (1999) which often leads to confusion in the original or the other products.
For example- A VR Company uses a similar logo to that of a well-established brand, causing
consumer confusion.
 Patent Infringement: It is this unlawful use, selling or copying of patented products without the
permission of patent holder. It is protected in India under Patent Act (1970). For example- A VR
hardware manufacturer uses a patented technology without permission.

PROTECTING YOUR INTELLECTUAL PROPERTY RIGHTS IN VR

 Register your IP rights: Make sure you register you VR technology with trademark, patent,
copyright etc.
 Use watermarking and encryption: Ensure the use of watermarks so that it’s hard to copy your
work and even if someone does, it will be copied with your watermark on it.
 Establish clear IP policies and agreements: Ensuring this will give a clear understanding to the users
as the aftereffects of copying.
 Keep Business Ideas and Trade Secrets a Secret: Don’t share your ideas or trade
secrets with anyone except your most trusted ones who are working with you to
fulfill that. It may lead to fraud or publication of your ideas.
 Copyright Notices: Include copyright notices within your VR experience to discourage unauthorized
use of it.
 Non-Disclosure Agreements: If you are collaborating with someone, sign NDAs to protect
confidential information. It creates a legal obligation on your partner to keep this confidential
information a secret. They cannot share it with anyone outside the project or use it for their own
purposes without your permission.
 Licensing Agreements: When you are allowing others to use your VR content, frame clear licensing
agreements outlining permitted uses of it and restrictions associated with it.

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BENEFITS AND DRAWBACKS:

There are both Benefits and Drawbacks of Intellectual Property Rights in VR which are as follows:

 Benefits:

- Encourages innovation and creativity: Virtual reality increase potential for innovation where creators
explore new space. We are specific tools helps in creation of new experience is from creating a website to
your own gaming experience.

- Provides legal protection and alternative for infringement: By providing legal protection such as IP laws
and alternative for infringement like open source libraries etc it supports flourishing VR ecosystem.

- Allows creators to control their work and manage their reputation: Creators hair hold the control all by
themselves this allow them to have control on how they are work is used insuring proper credits to be
given and preventing and authorized uses or modifications full stop this empowers them to manage their
reputation and protect their creativity.

- Enables licensing and collaboration opportunities facilitating monetary benefits: IP laws help creators
to gain profit through licensing their work. This allows them to sell their VR experiences along with
ownership rights, which further encourage collaboration allowing creators to team up and share financial
reward of their success.

 Drawbacks:

- Limit creativity and innovation due to restrictive licensing agreements: VR flourishes in innovation but
restrictive licensing agreements suppress it. These agreements limit how creators use pre-maid assets of
the organization like codes etc restricting their modifications which obstruct creativity and makes it difficult
to develop new and exciting VR experiences.

- May lead to expensive legal suits over infringement if rights: Unclear rights in VR leads to trouble. While
uncertain ownership of VR assets provokes legal battles. This makes it difficult to prove infringement
leading to expensive lawsuits. Therefore clear copyright guidelines are crucial to avoid these issues and
experience a healthy working environment.

- Can be difficult to enforce IP rights in virtual environments: Protecting creations in virtual reality can be
difficult specially the tracking of ownership of assets full stop interactive VR experience is blur the lines
between three maid content and new user creations making at hard to identify infringement this made IP
laws enforcement in VR a complex task.
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- Limits collaboration and suppress individual’s creativity: In VR, collaboration and creativity can be a
delicate thing to handle. Restrictive licensing process and unclear ownership make working together and
sharing assets a difficult task. Creators might fear law suits if they experiment too much. This discourages
development of truly innovative VR experiences.

SUGGESTIONS

Here are some suggestions for protecting your VR technology:

i. Register your IP rights: In order to obtain and claim legal rights for your intellectual property,
registering it with the government is necessary. This will give a legal assurance of protection of
your work with infringers on you back. It will record your ownership of the IP with the government
facilitating potential increase in its sale value.
ii. Use watermarking and encryption: A digital watermark is a piece of data embedded within the VR
experience to prevent it from copying & unauthorized distribution. Whereas encryption hides data
using a secret key, making it unreadable without that proper key. Together they boost user’s trust
in VR platforms, protects the VR Ecosystem etc.
iii. Establish clear IP policies and agreements: This involves creating a set of guidelines and formal
contracts that defines how intellectual property is handled within an organization. It prevents
disputes among the partners or parties, protects valuable IP, promote a successful and secure
environment for innovations within an organization.
iv. Monitor for infringement: It involves active process of tracking and detecting unauthorized use of
Intellectual property (IP) like copyright, patent, trademark etc. It helps in early detection of
infringements allowing quicker actions, protects brand image, provides evidence etc.
v. Seek legal advice: It refers to the process of consulting with a lawyer or attorney to obtain
guidance if you think someone is infringing your IP rights. They can help with registration and
insuring that your application meets the legal requirements. Also they can help you avoid potential
legal risk and navigating disputes.
vi. Developing new technologies and tools to better protect and manage IP rights in VR: Since
Virtual Reality is a new way of intellectual works it needs new technology and tools for better
protection and management of its rights. This leads to creation of innovative solutions specifically
designed for a unique type of challenge within the virtual reality environment. It will help in
stronger IP protection, increase in transparency, reducing disputes & increasing confidence in
creators etc.

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 vii. Provide education and resources for creators: It involves Providing education and resources to
creators to empower them with knowledge tools and skills they need to design and develop good
virtual reality experiences. It involves tutorials, guidelines, and attending conferences etc. It
encourages innovation, strengthen the virtual reality ecosystem, increase quality etc. It unlocks full
potential of the creators to create good experience for users.

CONCLUSION:

Intellectual property rights play a vital role in protecting creators work in the virtual world. Understanding
of these rights i.e. copyright, trademark, patent, trade secrets etc in virtual reality is necessary for
safeguarding their innovations, obtaining commercial or monetary benefits, claim legal remedies for
infringement and protecting their hard work and reputation. We should explore VR but at the same time
be aware of protecting your work to. One should explore innovation and creativity within VR but respect
for intellectual property remains essential while keeping in mind respecting the ownership rights of others.
As the use of VR technology continues to grow it is important for individuals and businesses to educate
themselves on IP laws and take necessary measures to protect their virtual assets. Let's work towards
building a powerful future with virtual assets being respected and protected just like physical ones.

Authored By: MANSI SINGH

KEYWORDS:

 Intellectual Property Rights

REFERENCES:

 https://www.investopedia.com/terms/c/copyright-infringement.asp
 Wikipedia
 https://www.winston.com/en/legal-glossary/trademark-infringement#:~:text=Trademark
%20infringement%20is%20defined%20as,product%20or%20service%20came%20from .
 https://www.law.cornell.edu/wex/patent_infringement

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 https://www.keith.law/trademark/the-basic-differences-between-trademarks-copyrights-patents-
trade-secrets/#:~:text=Remember%2C%20trademarks%20are%20aimed%20at,disclosure%3B
%20and%20trade%20secrets%20are
 https://gouchevlaw.com/5-steps-protecting-intellectual-property/

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