{"id":370377,"date":"2021-11-21T20:21:00","date_gmt":"2021-11-21T17:21:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/"},"modified":"2021-11-21T20:21:00","modified_gmt":"2021-11-21T17:21:00","slug":"just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/","title":{"rendered":"# Just buy it: Nike wants to bring sneakerheads into the Metaverse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40634734f8b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40634734f8b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/#Why_Nike_is_interested_in_the_Metaverse\" >Why Nike is interested in the Metaverse<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/#The_Metaverse_has_rules_that_will_be_new_for_Nike\" >The Metaverse has rules that will be new for Nike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/#The_Metaverse_is_new_for_courts\" >The Metaverse is new for courts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/#Can_Nike_help_build_a_Metaverse_legal_structure\" >Can Nike help build a Metaverse legal structure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/just-buy-it-nike-wants-to-bring-sneakerheads-into-the-metaverse\/#The_Metaverse_may_be_as_litigious_as_meatspace\" >The Metaverse may be as litigious as meatspace<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Just buy it: Nike wants to bring sneakerheads into the Metaverse <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Look at your feet. A lot of you (<em>raises hand<\/em>) are wearing Nikes right now. For the fiscal year ending May 31, 2021, Nike <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investors.nike.com\/investors\/news-events-and-reports\/investor-news\/investor-news-details\/2021\/NIKE-Inc.-Reports-Fiscal-2021-Fourth-Quarter-and-Full-Year-Results\/default.aspx#:~:text=Full%20year%20reported%20revenues%20increased,the%20full%20year%20was%20%243.56.\">reported<\/a>\u00a0its revenue was up 19% to $44.5 billion for the year. But that\u2019s here. What about in the Metaverse?<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/7c96264d-5ef7-4def-83d8-5c83ca3914a6.png\"><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_Nike_is_interested_in_the_Metaverse\"><\/span>Why Nike is interested in the Metaverse<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For those as of yet unfamiliar with the concept, the easiest \u2014 yet very incomplete \u2014 way of imagining the Metaverse is imagining yourself existing in a real-life video <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>. Nike enters and provides very cool meta-stuff. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/289c9ff1-d426-469e-a7e5-9d0cd56b5bde.png\"><\/figure>\n<p>This is no joke. Nike is very serious about the Metaverse. <\/p>\n<p>Patent filings dating way back to the pre-Metaverse universe in 2018 reveal that Nike has seriously been stockpiling the tools with which it can do business in the Metaverse. These digital tools will include sneakers but also avatars and other forms of virtual branding. Sure, Nike intends to sell you digital products (and you will buy them because Nike knows how to make you want them), but the meta-plan revolves around entire digital worlds. <\/p>\n<p>Is this just Nike being Nike? Sure, but if we choose to define that as creating net-new revenue streams, as it has throughout its entire history, then good for it. Someone\u2019s going to own the Metaverse swag, and it might as well be Nike. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Metaverse_has_rules_that_will_be_new_for_Nike\"><\/span>The Metaverse has rules that will be new for Nike<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nike needs to be prepared for the notion of destruction by duplication. In this temporal world, Nike has been very <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/nike-shoes-sneakers-customizers-air-force-one-lawsuit\/\">litigious<\/a> of late with its intellectual property (IP). Yet, in the Metaverse, duplication will transcend our current conceptions of what\u2019s legal. The value of Nike\u2019s meta-wares will absolutely be affected by what the company would deem to be pirates yet others would call artists. <\/p>\n<p>In the real world, there is a recent art project called the Museum of Forgeries with significant commercial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication. In brief, Brooklyn art collective Mschf bought an original Warhol for $20,000 and made 999 exact forgeries. It then mixed in the original and sold all 1,000 \u201cmight be real\u201d Warhols for $250 each for a grand total of $250,000, of which $230,000 is profit. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Digital turns physical: Top NFT galleries to visit in-person in 2021<\/em><\/strong><\/p>\n<p>The same thing will happen in the Metaverse. Some rare Nike drops (what we sneakerheads call a new release of a shoe or even a color \u2014 known as \u201ccolorway\u201d \u2014 of a shoe) will be real, some may be real, and some will be either knowingly or unknowingly fake.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Metaverse_is_new_for_courts\"><\/span>The Metaverse is new for courts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As to how courts are eventually going to deal with these metaverse disputes, Samir Patel, a Miami attorney and an appointee to the Miami-Dade Cryptocurrency Task Force, recently tweeted:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A judge\u2019s lack of knowledge on blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is completely missed by devs who think their inventions circumvent the law. Judges judge on what they know, not what you know. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/QDnLihGu9e\">https:\/\/t.co\/QDnLihGu9e<\/a><\/p>\n<p>\u2014 Samir Patel (@SamirPatelLaw) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SamirPatelLaw\/status\/1453054526026563597?ref_src=twsrc%5Etfw\">October 26, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>I talked to Patel about the realities of the new Metaverse and how it\u2019s going to be a quick, harsh discovery when judges realize that common law precedent will be more of a hindrance than a help in deciding Metaverse cases. As Patel said: <\/p>\n<blockquote><p>\u201cLegal doctrine like real property rights, breach of wet contracts and copyright infringement of human-derived work will govern the relationships in the metaverse (MV).\u201d<\/p><\/blockquote>\n<p>He continued: \u201cSo, when Nike wants to participate in the MV, whether that be with virtual storefronts, gear for avatars, or create new products exclusively for the MV, then its lawyers need to build a nexus between the MV legal violation or claim and meatspace.\u201d<\/p>\n<p>Just that fact that few-to-no judges (and very few lawyers) have used or even heard the term \u201cmeatspace\u201d is itself an issue. The term refers to our physical world, as opposed to cyberspace or a virtual environment such as the Metaverse. <\/p>\n<p>So, yes, Metaverse claims will need to be dumbed down for judges, at least initially written in such mundane ways, using such traditional language, so that judges won\u2019t get lost.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_Nike_help_build_a_Metaverse_legal_structure\"><\/span>Can Nike help build a Metaverse legal structure?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Patel sees a real opportunity here. \u201cNike has the resources to educate judges through trial because they can afford to pay their lawyers to drag out litigation, but other smaller petitioners would have a hard time convincing a judge that they own virtual property that exists on a virtual land registry, maintained by a decentralized blockchain,\u201d he said.<\/p>\n<p>Patel explained to me that if he were to buy virtual land in the Metaverse, the judge would probably view the transaction as a sale of goods and not a transfer of real estate. Because statutory regulations do not contain nor entertain the notion of virtual real estate, this virtual land can\u2019t be recorded in a virtual land registry because that registry is not governed by a municipality or sovereign. <\/p>\n<p>\u201cSo, if Nike were to sell a pair of virtual sneakers, but don\u2019t deliver the sneakers to the buyer, then that is a breach of contract in the sale of sneakers. But the bargained-for exchange of value will still need to be articulated and possibly recorded in meatspace,\u201d Patel explained.<\/p>\n<p>What this will mean in practice is a conundrum for judges, where there is no evidence of a contract being made in the Metaverse, such as a verbal contract entered into by two avatars. So, how can a judge award for one side in this dispute? It\u2019s exactly the same as a verbal contract done in meatspace. If an avatar can prove reliance on the verbal contract in the Metaverse, much like they may be able to do it in meatspace, then there may be evidence to support a plaintiff\u2019s claims.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>To work for everyone, the Metaverse must be decentralized<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Metaverse_may_be_as_litigious_as_meatspace\"><\/span>The Metaverse may be as litigious as meatspace <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>And there are going to be plenty of claims. If Nike has a problem with its creations being modified in meatspace without its permission and defendants in Nike lawsuits boldly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thefashionlaw.com\/customizer-argues-that-it-does-not-need-nikes-authorization-approval-to-sell-modified-sneakers\/\">answer<\/a>\u00a0that modifications are art, not IP theft, just imagine the Metaverse. Patel noted:<\/p>\n<blockquote><p>\u201cIP laws will be tested in the MV, if artificial intelligence is used to create landscapes or other virtual objects.\u201d<\/p><\/blockquote>\n<p>He added: \u201cThat\u2019s because AI derived work is not covered by U.S. copyright laws. So, if I were to deploy AI in the MV and the AI creates something wonderful, I have zero rights to the derived work and someone else can mimic the work and claim copyright for themselves. It will be exceedingly difficult to protect one\u2019s copyrights because the MV could be so vast and the infringer could be an AI-deployed entity. Judges will treat these issues using meatspace copyright laws.\u201d<\/p>\n<p>This leaves us with the only viable way to change how judges view and decide cases in the Metaverse: by changing our existing laws to accommodate virtual reality. Without this change, as viewed through the eyes of judges, everything is meatspace and virtual reality doesn\u2019t exist as a legal reality.<\/p>\n<p>The true legal reality, as Patel pointed out, is that \u201cNike would be prudent to hire attorneys that are well-versed, and I mean really well-versed, in real property, the Uniform Commercial Code, as well as experts in blockchain technology.\u201d<\/p>\n<p>With the Metaverse providing a new virtual world of opportunities to create, sell, buy and sue, it\u2019s going to be fascinating to watch through societal, commercial and legal lenses. Just the fact that Nike has been getting ready to create, sell and litigate in this new space means that you should also get ready for the reality of the Metaverse, coming soon to a computer or phone very near you.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Aron Solomon<\/strong> is the chief legal analyst for Esquire Digital and has taught entrepreneurship at McGill University and the University of Pennsylvania. Solomon was elected to Fastcase 50, recognizing the top 50 legal innovators in the world. His work has been featured in CBS <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a>, CNBC, USA Today, TechCrunch, The Hill, BuzzFeed, Fortune, VentureBeat, Yahoo!, and many other leading publications.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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A lot of you (raises hand) are wearing Nikes right now. For the fiscal year ending May 31, 2021, Nike reported\u00a0its revenue was up 19% to $44.5 billion for the year. But that\u2019s here. What about in the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":370378,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvMTAzNmVlNzEtYjNmYy00MzU4LTlkOTgtZjEyYzA5NTVkMzM0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,76717,91498,95118,117,70934],"class_list":["post-370377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-copyrights","tag-metaverse","tag-nft","tag-business","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/370377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=370377"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/370377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/370378"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=370377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=370377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=370377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}