The Retailer Autumn Edition 2022

THE RE TA I L ER

2 4

TEN TIPS FOR ENTERING THE METAVERSE

Paul Joukador Partner RPC

Tania Williams Partner RPC

Oliver Bray Senior Partner RPC

A s the era of omnichannel and experiential retailing comes of age, we give you ten things to think about before setting up shop in the metaverse.

Set up your data towork for you The metaverse may allow for the collection of vast amounts of customer data. Whilst this has massive potential from a customer reach and insights perspective, it also presents a significant compliance challenge on a global scale.

Once the province of online gaming and social media, the metaverse is the new hot topic in retail. Over the past couple of years, many retailers and brands have dipped their toes into the metaverse. With the growing interest and investment in the metaverse, this is creating new opportu nities for connecting with customers. It might not happen overnight, but it’s only a ‘meta’ of time before we are likely to see mainstream entry to the metaverse by retail businesses wanting to ride the omnichannel wave from virtual engagement to real‑world success.

Get your IP in order Where possible, ensure your existing IP is properly registered (including in the correct virtual/digital classes and/or adding classes to existing trade mark registrations), and register any new designs for existing/ new digital goods. You should also ensure your contracts are clear as to who owns any new IP created in the metaverse, and that you have the necessary licences for any third-party content.

Develop your strategy The number of metaverses and possibilities within them are potentially infinite. Ensuring you have the right focus is crucial, such as under standing which metaverse you want to be involved in, what the active demographic within that metaverse is, andwhat you are trying to achieve within that landscape (eg create a community for brand engagement, offer complimentary services to the real world experience, or develop a new revenue channel).

Ensure your contract matrix works You will have a host of contractual partners supporting your presence and activities within the metaverse (platforms/providers, consumers, content creators, tech partners etc.). Whilst negotiations often focus on individual contracts, just like any tech stack, you need to consider how your contracts interact, and in particular, that you have the rights to share outputs as needed to create and maintain your presence in the metaverse.

Budget accordingly The costs of being in the metaverse should not be underestimated. Prices can fluctuate dramatically and investing in virtual propertymight set you back a fair amount, especially if you want Snoop Dogg as your virtual neighbour. On top of that you will need to think about the costs of transacting and meeting legal requirements in multiple jurisdictions, depending on your plans.

Listen to your regulators Regulators have indicated that existing rules that are applicable to the digital and online world apply equally in the metaverse. Don’t assume that your approach to compliance in the real world will operate in the same way in the metaverse, as in the metaverse the rules are being applied in a novel context. You may find there are additional regulators to engage with, eg the FCA for cryptocurrencies, the ASA for advertis ing regulations, the CMA in relation to consumer protection, and tax authorities for issues such as VAT treatment.

‘‘

The metaverse offers brands and retail ers novel opportunities to enhance their brands, entertain and engage their customers and improve the customer experience.”