What is the ‘metaverse’?
According to Annie Haggar – the strategic partnerships global legal lead at Accenture and winner of the General Counsel of the Year category at the 2021 Australian Law Awards – asking what is the metaverse is akin to asking what the Internet is back in 1983.
When technology is first evolving, she explained, it is hard to define what it will become. We can imagine the possibilities, she noted, but cannot quite articulate how something will turn out.
What we do know thus far, Salerno Law corporate and fintech associate Krish Gosai proclaimed, is that the metaverse is the next evolution of the internet, as part of a shift from Web 2.0 to Web 3.0. It is, he said, a “network of virtual spaces accessed via the internet that aims to merge physical reality with the digital ecosystem”.
Put another way, LexisNexis Legal & Professional managing director (Pacific) Greg Dickason suggested, we can think of it as a “3D Facebook where you can move around and interact with others across multiple worlds”, with commerce being logged on a blockchain.
Metaverses vary in nature, Mr Gosai outlined, and “can range from a simple gaming environment to an independent virtual economy, consisting of its own digital currency, real estate ecosystem and workforce, where one can earn a living”.
Why lawyers should care
Lawyers should start paying attention to this new medium, Ms Haggar stressed, because – like the internet – it will fundamentally change the way that lawyers work, play, travel, socialise, conduct business, and learn.
“As with all new technology, its impact on the world has an impact on the law because it has an impact on society. The law is usually slow to catch up, and there will be, perhaps a long period, where the legal profession has to grapple with the impact of the metaverse on clients and legal issues before there are clear rules, laws, and precedent to follow,” she said.
The metaverse doesn’t stand on its own, Ms Haggar noted.
“The legal profession needs to not only consider the impact of the virtual worlds that are being created, but [also] the explosion of technology – robotics, artificial intelligence, analytics, automation – and the way that people are using them. The law itself will take some time to catch up, but the impacts are here and now, as is the potential,” she said.
On a more practical level, lawyers will have to familiarise themselves with the intricacies of the metaverse, Mr Dickason outlined, due to the “contentious issues of IP ownership (who owns the visual representation of Buckingham Palace in a virtual London?); current concerns with data and who owns user data; jurisdictional considerations of which jurisdiction a transaction has occurred in, when users are in the virtual world; and who are the parties in a transaction if some of or all of them are automated/smart contract-based?”
All of this, Mr Gosai surmised, should be seen as an opportunity by lawyers to capitalise on the new medium to rethink the nature and delivery of legal services.