As we enter into the new era of Web 3.0, internet users are seeing an incredible rise in the popularity, value, and demand of digital items in the form of NFTs. Digital fashion has not been excluded from this phenomenon as we saw in the sale of the ‘Baby Birkin’ animation this past June, which sold for $23,500 at auction. What is fascinating, however, is that Hermès was not affiliated with the creation of the digital art or the sale and therefore saw no revenue from the sale. (The cost of a real Baby Birkin is only $9,500). Thus, this raises the question of ownership and legality over user-generated digital assets. Given that trademarks are registered by category, the creators behind this NFT can argue that since Hermès has registered the pertinent marks for leather goods and not for digital art, the image is protected as fair use. Nevertheless, trademark laws are a bit blurry when it comes to this new digital commerce environment.
Brands are increasingly motivated to collaborate with digital artists to create wearable digital technology that is an extension of their brand in order to capitalize on the gains. The next generation of consumers have made it clear that there is value in digital items and that includes fashion, therefore, it is in the hands of these brands to keep up with cultural trends and transition into the digital space. Our digital characters and avatars are extensions of ourselves in this new metaverse so it is imperative that they look cute too.
