In-House Counsel

Dangers Lurk In The Metaverse: A Guide For In-House Lawyers

VR carries several risks that must be considered by in-house counsel.

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471713As virtual reality evolves and becomes more widely adopted, in-house lawyers must understand the potential dangers lurking in the metaverse. While VR can offer a wealth of business opportunities, it also carries several risks that must be considered. This article will explore some of the most common dangers associated with VR and how they can be avoided or mitigated.

Intellectual Property Theft

Virtual reality can make it easier for bad actors to access and steal valuable intellectual property. Therefore, companies should develop strategies to protect their data, which could involve encryption technology and monitoring networks for suspicious activity.

For instance, if your company is developing a new gaming experience, you should be especially cautious about protecting the design and code of the game. If these elements are stolen, there is no way to guarantee they won’t be used by someone else.

Cybersecurity Threats

Hackers are always looking for ways to exploit new technologies, and VR is no exception. It’s essential to be aware of the potential for cyberattacks so that you can develop appropriate strategies to protect against them. It’s always recommended that businesses ensure that all the systems used in their VR setup are adequately secured with firewalls and antivirus software.

Disclosure Requirements

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When developing new experiences in VR, it’s essential to ensure all users are aware of any potential risks associated with using the technology. This could include disclosing any health or safety risks and any privacy concerns that might arise from collecting or using personal data.

Liability Issues

In some cases, businesses can be held liable for the actions taken by users within a virtual world, particularly if someone is injured or harmed in some way. To reduce liability risks, businesses should consider incorporating disclaimers and user agreements that outline any potential risks associated with their VR experience.

Data Protection

Virtual reality raises unique questions concerning data protection, including how to store, access, and use collected user data. Each company should develop a comprehensive data security plan that outlines how user data will be used and protected, which should include monitoring systems for potential vulnerabilities regularly.

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Privacy Concerns

Virtual reality can expose users to various privacy concerns related to the collection and use of data for physical safety. Companies must be transparent about user data and the steps they take to protect user privacy.

Regulatory Compliance

As virtual reality becomes more widespread, governments are developing regulations specific to this technology. Businesses must be aware of applicable laws and regulations and actively ensure compliance.

Conclusion

Overall, in-house lawyers must be aware of the dangers made possible by the metaverse. By understanding potential threats and developing strategies to protect against them, companies can ensure that their VR experiences are secure, compliant, and ultimately successful.

Olga MackOlga V. Mack is the VP at LexisNexis and CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and  Blockchain Value: Transforming Business Models, Society, and Communities. She is working on Visual IQ for Lawyers, her next book (ABA 2023). You can follow Olga on Twitter @olgavmack.

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