Chinese businesses are rushing to register trademarks related to the metaverse, translated as Yuanyuzhou in Chinese, despite Beijing’s warnings over risks associated with the new concept, according to the latest trade registration data.

    As of Sunday, more than 1,360 Chinese companies, mainly technology firms, have applied to register metaverse-related trademarks, a big jump from three months ago when only 130 companies had filed such applications, the Securities Daily reported on Monday, citing data from business and trademark registration tracking firm Tianyancha.

    The number of individual metaverse-related trademark applications as of Sunday had reached 8,534, as it is common for businesses to apply for multiple trademarks.

    For example, NetEase, China’s second largest video games company after Tencent Holdings, has applied to register 26 trademarks related to metaverse, including names such as “metaverse satellite” and “metaverse exhibition”, the report added.

    Most of the trademark applications are currently “pending ” or undergoing “substantive examination”, the newspaper said.

    Telecommunications giant Huawei Technologies Co and Hisense, China’s largest television brand, also jumped onto the metaverse bandwagon last week.

    Huawei applied to register Meta OS and Hisense applied for several metaverse trademarks in fields like advertising sales, social services and scientific instruments.

    Tencent, owner of multipurpose super app WeChat and the world’s largest video gaming company by revenue, filed in September to register nearly 100 metaverse-related trademarks, including QQ Metaverse, QQ Music Metaverse and Kings Metaverse – corresponding to the names of company’s messaging app, music-streaming platform and marquee mobile game Honour of Kings, respectively.

    Online video platforms Kuaishou and iQiyi, as well as electric carmakers Xpeng and Li Auto, have also sought to register their own metaverse trademarks in recent months.

    The metaverse promises a lifelike, immersive virtual world where people can meet, work and play, and is considered by many as the next iteration of the internet. Transactions and purchases of virtual items in the metaverse are made with cryptocurrency, backed by non-fungible tokens (NFTs) or other digital assets.

    Although Chinese firms are rushing to embrace the concept, the Chinese government has maintained a cautious attitude, as expressed by commentaries in state-run media.

    On December 9, People’s Daily issued a fresh warning about the metaverse, saying “virtual property” sales carried risks of volatility, fraud, illegal fundraising and money laundering.

    The article further noted that China has not provided clarity on regulations, or the legal nature of NFTs, and that transactions made with other digital assets are not supported by laws in China or other countries.

    Last month, People’s Daily warned against what it saw as a market frenzy, saying “everyone still needs to stay rational in understanding the current metaverse mania”.

    Source: https://www.scmp.com/