Trademarks in Web3, AI, and the Metaverse: What Still Applies (and What Doesn’t)

By Jay Kotzker

Emerging technologies have a habit of moving faster than the law—but not as far ahead as many people think.

As brands expand into Web3, artificial intelligence, and the metaverse, founders and executives often assume that traditional trademark rules no longer apply. New platforms, decentralized ecosystems, and AI-generated content can feel like a legal frontier with no map.

The reality is more nuanced: most trademark principles still apply—but they apply differently. Understanding where the law is settled, where it is evolving, and where risk hides in plain sight is critical for protecting brand value in these new environments.

What Still Applies: Core Trademark Principles Remain Intact

Despite the technological shift, trademark law continues to revolve around a few foundational concepts that remain firmly in place.

1. Trademarks Still Protect Source and Consumer Trust
   
   At its core, a trademark exists to identify the source of goods or services and prevent consumer confusion. Whether a brand appears on a physical product, a digital platform, an NFT, or a virtual storefront, the legal question is the same:
   
   Does this mark signal who is behind the offering?
   
   If the answer is yes, trademark law is likely implicated—regardless of the medium.

2. Use in Commerce Still Matters
   
   Trademark rights are based on use, not ideas.
   
   Using a brand name in:

• • Virtual marketplaces
  • Digital goods or NFTs
  • AI-driven platforms
    
    Metaverse experiences can still qualify as trademark use, provided it is tied to a bona fide commercial activity. The fact that the product or service is virtual does not remove it from trademark scrutiny.

3. Likelihood of Confusion Is Still the Legal North Star
   
   Infringement analysis has not changed simply because technology has evolved.
   
   Courts and regulators still ask:

1. 1. Are the marks similar?
   2. Are the goods or services related?
   3. Are consumers likely to believe there is an affiliation or endorsement?
      
      Virtual goods, avatars, digital wearables, and AI-powered services are increasingly viewed as natural brand extensions, not legal outliers.

What’s Changing: How Trademarks Apply in Emerging Tech

While the core rules remain, their application is expanding in ways that brand owners cannot ignore.

1. Digital Goods Are Now Trademark-Relevant
   
   Historically, trademarks focused on physical goods and traditional services. Today, digital-only offerings—such as virtual apparel, digital art, in-game assets, and NFTs—can support trademark rights and create infringement risk.
   
   Brands that delay protection in these categories may find themselves reacting rather than controlling.

2. AI Complicates Brand Ownership and Control
   
   AI introduces new trademark questions, including:

1. 1. Who owns rights in AI-generated brand names or logos?
   2. What happens when AI tools generate content that resembles existing brands?
   3. How much responsibility does a company have for outputs created by its AI systems?
      
      While the law is still developing, one principle is clear: brands remain responsible for how their trademarks are used—by humans or machines.

3. The Metaverse Blurs Industry Boundaries
   
   In virtual environments, fashion brands offer digital real estate, entertainment companies sell virtual merchandise, and tech companies operate immersive retail spaces.
   
   This convergence means brands may face trademark conflicts from unexpected industries, making clearance, monitoring, and portfolio planning more important than ever.

What Doesn’t Apply (or No Longer Works)

Not everything from traditional trademark strategy survives the leap into emerging tech.

1. “We’re Too Small / Too Early” Thinking
   
   In fast-moving digital ecosystems, early adoption matters. Waiting until a brand “takes off” can result in:

1. 1. Loss of priority
   2. Defensive filings by third parties
   3. Costly disputes over virtual brand rights

2. Assuming Platform Rules Replace Trademark Law
   
   Marketplace terms, platform policies, and community guidelines are not substitutes for trademark protection. While they may help with enforcement, they do not create ownership rights.
   
   True brand protection still depends on trademark strategy, not platform goodwill.

3. Treating Virtual Branding as Experimental
   
   What begins as a marketing experiment can quickly become a revenue stream—or a reputational risk. Brands that treat virtual uses casually often discover too late that those uses have legal consequences.

Strategic Takeaways for Brand Owners

For companies operating—or planning to operate—in Web3, AI, or the metaverse, trademark protection should be intentional, proactive, and integrated into business strategy.

Key considerations include:

• Evaluating whether existing trademarks cover digital goods and services
• Expanding filings to align with virtual and AI-enabled offerings
• Monitoring emerging platforms for infringement and misuse
• Aligning legal, marketing, and technology teams early

Looking Ahead

Trademark law is evolving alongside technology—but it is not starting from scratch. The brands that will thrive in emerging digital spaces are those that recognize a simple truth:

Innovation does not eliminate legal risk; it reshapes it.

A thoughtful trademark strategy remains one of the most effective ways to protect brand equity—whether the marketplace is physical, digital, or entirely virtual.

This article is for informational purposes only and does not constitute legal advice. Trademark strategy should be tailored to specific facts and jurisdictions.