The Metaverse: Issues of Jurisdiction and Dispute Resolution

Abstract

The paper examines the jurisdictional aspects of dispute resolution in the metaverse, a digital world whose key features include the use of immersive technologies (virtual reality); user representation through avatars; conducting transactions using blockchain; the existence of centralized and decentralized platforms; the availability of intangible assets and NFTs in commercial turnover. The author provides a classification of disputes that may arise in the metaverse, namely disputes between users and platform operators; disputes between users; disputes over intellectual property. In the first category, the author highlights legal conflicts related to virtual real estate, as well as disputes over the personal data of users of platforms whose operators cannot guarantee protection from hacker attacks. Regarding disputes between users, the author notes that many of them are related to the lack of any control in the metaverse over the provision of virtual services, the creation of digital assets and transactions. Turning to the question of applicable law and jurisdiction, the author points out that in most cases the relevant provisions are included in the user agreements of individual platforms and are not subject to change. The paper discusses three dispute resolution tools that arise in the metaverse: «traditional» — in state courts or in arbitration; «modified», where the rules of procedure are adapted to the specifics of virtual legal relations, and «decentralized» — in the framework of online dispute resolution, combining elements of blockchain, crowdsourcing and artificial intelligence.