The Evolving Frontier: Examining the Legal Status of Virtual Property in Metaverse Platforms

  • Vaibhav Kumar
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  • Vaibhav Kumar

    Student at OP Jindal Global University, Sonipat, India

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Virtual properties, including virtual land and in-game items have emerged as significant economic entities within online gaming environments and virtual worlds which draw substantial real-world financial interest. However, despite their economic importance, the legal framework governing virtual property rights remains severely undeveloped. This research article examines the legal status of virtual property in online gaming environments and virtual worlds, focusing on the applicability of traditional property law and the need for new legal frameworks. The Metaverse industry that leverages blockchain technology, NFTs, and artificial intelligence, is pioneering a "phygital" world that blends augmented and virtual reality into immersive mixed reality experiences. The paper discusses the current hybrid license-lease model of ownership, the challenges of applying traditional property law principles to virtual assets, and the necessity for clearer contracts, effective dispute resolution mechanisms, and transparent terms to enhance the appeal of metaverse real estate investments. It also addresses legal uncertainties, including jurisdictional issues, the enforcement of end-user license agreements, and the risks associated with platform control over virtual assets. By exploring case studies and the current landscape, this paper underscores the importance of developing clear legal regulations to ensure user safety, data privacy, and a secure metaverse experience. Legal scholars are encouraged to adapt existing frameworks to meet the evolving needs of virtual property ownership in the metaverse.




International Journal of Legal Science and Innovation, Volume 6, Issue 3, Page 1032 - 1041


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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