Changes from report parliamentary committee draft to plenary report

EXPLANATORY STATEMENT

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ChangedWith this draft report, the twoThis Rapporteursreport acknowledgeacknowledges the growing economic, social and even political importance of virtual worlds.

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ChangedGiven the early stage of their development, in light of the outcome of the work of the Citizens’ Panel on Virtual Worlds, and taking account of the Commission’s Communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’, the Rapporteurs aim with this report to outlineoutlines the main legal issues posed by virtual worlds.

This effort is meant both to indicate to the Commission the need to examine possible legal issues that are not addressed in its Communication and to serve as a basis for future work for the Parliament in the next legislature.

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ChangedAfter welcoming the definition of ‘virtual worlds’ delineated by the Commission in its above mentioned Communication, the RapporteursReport assert the need for an ethical and legal framework for this new technology and analyse the most problematic aspects that fall within the competence of the Committee on Legal Affairs, namely in the areas of private international law, civil law and intellectual property law.

These issues, although scattered across different legal domains, present common features: the technologies underpinning virtual worlds, and in particular the decentralised nature of blockchain and of non-fungible tokens (NFTs), are either incongruous with some of the concepts and principles traditionally at the heart of the Union legal acquis, like the territoriality of the provisions on applicable law and jurisdiction, or severely hinder the enforcement of Union law, as is the case with the protection of intellectual property rights and the identification of infringers or tortfeasors.

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ChangedThe Rapporteurs,Report, moreover, expressexpresses concerns about the lack of transparency that characterises the marketing of NFTs and note that, for instance, the expression ‘virtual real estate’, sometimes used in this context, is susceptible to make consumers mistake the licence agreement they are concluding for the acquisition of an actual property right.

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ChangedIn order to ensure a safe and socially beneficial, inclusive and affordable uptake and informed use of virtual worlds and to promote democratic control, legislation alone is not sufficient. The RapporteursReport therefore conclude their reflectionsconcludes by recalling the importance that accessibility, public services and digital literacy play for a human-centric digital transition, in which every citizen can benefit from access to this new technology, no one is left behind and the values, principles and fundamental rights of this Union are upheld.