The metaverse is transforming the practice of law, presenting unique challenges and unprecedented opportunities.

Full article

The impact of the metaverse on the practice of law

The metaverse, a virtual universe where people interact in three-dimensional environments, is rapidly emerging as a new technological frontier with profound implications for multiple industries. Although the concept has been around for decades, the recent explosion in popularity driven by virtual and augmented reality technologies has transformed the metaverse into a tangible reality, where social, economic and cultural interactions take place in a digital space. For lawyers, this new environment poses unique challenges and opportunities. Practicing law in the metaverse ranges from drafting smart contracts to defending in cybercrime cases to protecting digital property and resolving virtual disputes. This article explores how the metaverse is reshaping the legal field and what lawyers should consider as they navigate this new reality.

One of the most revolutionary aspects of the metaverse is the integration of smart contracts, which are self-executing agreements with terms directly written in code. These contracts run on blockchain, which guarantees immutability and transparency, essential elements in any legal agreement. In the metaverse, smart contracts can automate a variety of transactions, from the purchase of digital goods, such as virtual land and avatars, to the provision of professional or artistic services.

For lawyers, this means a shift in the way contracts are drafted and executed. Legal terms are no longer just captured in traditional legal language, but must also be translated into code, which requires a basic understanding of blockchain and programming. In addition, while smart contracts reduce the risk of breach by automating execution, they can also generate disputes if the code contains errors or does not provide for all possible contingencies. Lawyers will need to adapt their practice to include code review and the creation of supplemental agreements to cover potential gaps in smart contracts.

The concept of property in the metaverse differs markedly from the physical world. Here, digital property includes items such as virtual land, works of art in NFT format (non-fungible tokens) and other digital assets that can be bought, sold and exchanged. However, digital property raises complex legal questions: how is ownership defined in a virtual environment? What rights does a user have to a digital asset in the metaverse? How are these rights protected?

Lawyers operating in this arena must be prepared to face challenges related to the protection of intellectual property rights and the authenticity of digital assets. The decentralized nature of the metaverse and the use of technologies such as blockchain further complicate the situation, as traditional jurisdictions may not be applicable or effective in these environments. In addition, the ability to copy or reproduce digital assets poses significant risks to owners and creators, necessitating the development of new regulations and legal strategies to protect ownership in the metaverse.

The metaverse also opens up a new dimension in terms of cybercrime. Fraud, identity theft, harassment and other forms of criminal activity can occur in these virtual environments, and are often more difficult to detect and prosecute than in the real world. For example, a user might create a fake avatar to commit fraud or to harass other participants in the metaverse, and illegal actions can have consequences both inside and outside the virtual environment.

Cybercrime lawyers will need to become familiar with the intricacies of the metaverse, including identifying criminals operating under pseudonyms and gathering digital evidence that can be used in lawsuits. In addition, because virtual environments may be run by private companies with their own regulations, it may be necessary to work collaboratively with these entities to prosecute and prevent crimes. Current legislation is often not equipped to handle these new types of crimes, which will require an evolution in laws and law enforcement approaches.

Dispute resolution in the metaverse represents another emerging challenge. With the increasing complexity of digital interactions, it is inevitable that conflicts will arise between users, between users and companies, or even between entities operating within these virtual environments. Resolving these conflicts may require new forms of mediation and arbitration that are adapted to the nature of the metaverse.

One option that is gaining ground is the use of decentralized dispute resolution platforms, which allow the parties involved to resolve their differences through voting or arbitration decisions managed through smart contracts. These systems can offer quick and efficient resolution, but also present challenges in terms of fairness and equity, as decisions are based on mechanisms that may not be aligned with traditional legal norms.

For lawyers, adapting to these new dispute resolution methods will be key. This includes developing new legal strategies and becoming familiar with emerging technologies that facilitate mediation and arbitration in the metaverse.