NFT Virtual Goods

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NFT Virtual Goods

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What are examples of virtual goods?

Players would sell virtual goods, such as swords, coins, potions, and avatars, to each other in the informal sector. While this practice is forbidden in most blockbuster online games, such as World of Warcraft, many online games now derive revenue from the sale of virtual goods.

A virtual or digital product is something that is not tangible, it does not contain any physical stock. This includes subscriptions, memberships, courses, digital downloads of music, books, movies, and other products.

A virtual good is an intangible asset that is traded in a virtual economy, such as in online games. Virtual goods are by definition nonphysical; their value is determined solely by what users are willing to pay for them.

Virtual goods and NFTs – IP protection of digital assets in gaming, social media and the metaverse

The pioneering role of the gaming industry

Virtual goods and digital assets are issued, purchased and traded digitally. They are often conceived as counterparts of goods and services in the real world – virtually (pun intended) any product and services that exist in real life can also be imagined in the virtual world. And unlike its real-world counterpart, a digital item can be enhanced, modified, and equipped with new features. In the gaming industry, virtual goods have traditionally been used mainly as in-game items in the form of skins, clothing, accessories, equipment, and weapons for avatars. Through the introduction of blockchain, digital assets can be individualized, and a clear record of assignment or ownership be kept and tracked – excluding the risk of double selling, opening in-game items up to trade outside of an individual game’s ecosystem, and facilitating monetization through easy tracking of royalties for secondary sales. Game developers are already making significant investments in tokenized digital assets. In emerging games such as "Decentraland" and "The Sandbox", digital land can already be bought, sold and developed with virtual buildings. Game developer Ubisoft is introducing NFTs in its games and opening trade among players through its "Ubisoft Quartz" platform. Digital assets afford novel opportunities for creative collaborations between non-endemic brands, gaming companies, social media operators, artists, and exchanges. The Metaverse is here to stay.

BOIP is increasingly receiving trademark applications with terms relating to virtual goods and non-fungible tokens (NFTs). We also regularly receive queries about them from our customers. In the article below we explain how we deal with them.

Nonfungible tokens, or NFTs, have a small foothold in the video game industry, but that's already too much for some gamers. Backlash over the possibility of any prominent game company indulging in digital tokens has been quick and fierce, leading to some developers backtracking on grand plans almost immediately.

Gamers have traditionally pushed back on what they see as exploitative content designed to extract cash from their wallets. From downloadable content, or DLC, to loot boxes, the games industry is always searching for innovative ways to monetize products. Despite pushback from gamers, experts say that NFTs in video games, just like DLC, are here to stay because tokens like these could be potential moneymakers for major game companies.

NFT virtual land is an area of digital land that can be owned or acquired via metaverse platforms. Since non-fungible tokens (NFTs) represent ownership of portions of an asset, they also suitably represent land ownership as each one is unique and easily proves digital ownership.