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**Virtual digital human endorsement is popular and compliance challenges cannot be ignored**
“The domestic metaverse industry has made some progress in virtual experience, and the regulatory policy and lack of ecology are important issues in the current industry development. “During the 3rd China International Consumer Goods Expo (referred to as “Consumer Expo”), Liu Xin, partner of PricewaterhouseCoopers Strategy& China Digital Growth Center, said so when talking about the development of metaverse and compliance challenges.
New data forms emerge in an endless stream in the Metaverse, which brings new challenges to the supervision of data and personal information in the Metaverse. Liu Xin explained that currently, regulators and users are paying more and more attention to the supervision of data and network security. However, new categories of personal data have emerged in the Metaverse. For example, during the interaction process in the virtual world, virtual avatars may generate Facial expressions, gestures and other responses are new data, and how to police them is an issue the industry needs to address.
Liu Xin talked about the “blurring” of international boundaries in the virtual world of the Metaverse. For example, in the Metaverse, if one needs to see the location of an avatar or the location of an operator, which may involve transnational operations, how do you determine which country’s jurisdiction the Metaverse belongs to? And how is cross-border flow of data defined in the Metaverse? These questions currently have no clear answers.
As the commercial application of Metaverse becomes more and more extensive, trademark management in Metaverse is facing greater challenges. Liu Xin explained that some companies hope to sell digital versions of their existing products in Metaverse, which are essentially a computer program and do not fall under the category of trademarks that companies usually register in China. At present, there is no corresponding special law to manage these virtual products in China.
“For enterprises, it is very important to register the trademarks used in the metaverse as soon as possible.” Liu Xin believes that if enterprises want to ensure the normal consumption of their own trademarks in the metaverse, they should at least ensure that their trademarks are in category 9 (digital goods, Computer Programs) and Class 42 (Digital Goods and NFTs) etc. to prevent other malicious trademark applications.
At present, the development of virtual digital humans in China is showing a booming trend. Many businesses choose to use virtual digital humans to carry out live delivery, and some businesses even invite virtual digital humans to speak for their brands.
“As a new form of endorsement, the supervision of virtual human endorsement is also facing challenges.” Liu Xin pointed out that in commercial advertising activities, virtual digital humans recommend and certify products in the name and image of their own virtual digital humans. However, a virtual digital person is not a natural person, does not have the fictitious personality of a legal person or other organization, does not meet the qualifications of an advertising spokesperson as defined in the Advertising Law, and cannot perform obligations such as reviewing products. Once there is a problem with the endorsement product, who should be held accountable? This is also an issue that needs to be clarified.
https://www.sohu.com/a/666390163_119038
https://www.sohu.com/a/666390163_119038