The way consumers interact with brands is changing rapidly. A brand is no longer confined to a physical shop, product package or traditional advertisement. Businesses today operate through mobile applications, online marketplaces, virtual environments, gaming platforms, social media and other digital spaces. At the same time, companies are increasingly offering digital products such as downloadable software, virtual clothing, digital artwork, virtual accessories and other goods intended for use in online environments.
This transformation creates an important question for trade mark law: Can a brand be protected when the goods or services associated with it exist primarily in a digital or virtual environment?
The answer in India is broadly yes, but the position requires careful analysis. The Trade Marks Act, 1999 is not limited to traditional physical products. It protects trade marks in relation to specified goods and services, and its definition of “service” is sufficiently broad to cover many forms of commercial activity. However, registration is not automatic merely because a business describes its product as “digital”, “virtual” or “metaverse-related”.
The real legal issues are likely to concern the nature of the digital product or service, the correct classification, distinctiveness of the mark, the likelihood of confusion and the manner in which the mark is used in commerce.
The international classification system has also evolved in response to these developments. WIPO's Nice Classification, which is used internationally for the classification of goods and services for trade mark registration, has introduced increasingly specific terminology relating to virtual goods, NFTs, virtual environments and related services. The 13th edition of the Nice Classification came into force on 1 January 2026.
Understanding Virtual Brands and Digital Products
The expression “virtual brand” does not represent a separate statutory category of trade mark under Indian law. It is better understood as a commercial description of a brand that operates partly or substantially in a digital environment.
For example, a company may use its brand for:
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downloadable digital clothing for avatars;
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virtual shoes, bags or accessories;
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digital artwork;
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downloadable software;
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virtual gaming items;
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online marketplaces;
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virtual retail stores;
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entertainment services in virtual environments;
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software platforms supporting virtual environments; or
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digital products authenticated or associated with NFTs.
A company may therefore need to think about its trade mark portfolio not only in relation to its physical goods, but also in relation to the digital products and services through which the brand is commercially exploited.
WIPO has specifically recognised that businesses offering branded virtual goods and services should consider trade mark protection for those offerings.
The Indian Legal Framework
The principal legislation governing trade marks in India is the Trade Marks Act, 1999.
Section 2(z) defines a “service” broadly and includes services such as communication, entertainment, amusement, advertising and the provision of information, among other commercial activities.
This broad definition is important for digital businesses because many virtual products are connected with services rather than conventional physical goods.
Section 28 provides the rights conferred by registration of a trade mark, subject to the provisions of the Act. Section 29 deals with infringement of registered trade marks, while Section 27(2) preserves the common-law remedy of passing off.
Consequently, a business operating in the digital economy may potentially rely upon both registered trade mark protection and passing-off principles, depending upon the circumstances.
However, the scope of protection remains connected to the goods and services for which the mark is registered.
Why Classification Matters
One of the most important issues for virtual brands is classification.
Trade marks are not registered in the abstract. Registration is sought in relation to particular goods and services, which are classified under the Nice Classification.
The Nice Classification currently contains 45 classes covering goods and services. It is periodically updated to reflect developments in commerce and technology.
This is particularly significant for virtual products.
For example, WIPO's 2026 examination guidance recognises descriptions such as downloadable virtual clothing for use in online virtual environments in Class 9. It also distinguishes such virtual clothing from physical clothing, which belongs to a different class.
This distinction demonstrates an important practical point: a business should not assume that registration for a physical product automatically provides identical protection for a corresponding digital product.
Virtual Goods Are Not Necessarily the Same as Physical Goods
Imagine a fashion company that owns a registered trade mark for physical clothing.
The company subsequently launches virtual clothing that users can purchase and use for their avatars.
Although the physical and virtual products may carry the same brand, they are not necessarily identical goods for classification purposes.
A virtual jacket is not physically manufactured or worn in the conventional sense. It may instead be a downloadable digital file or another form of digital asset intended for use in a virtual environment.
Therefore, the specification of goods and services should accurately describe what the business actually provides.
This is one reason WIPO's current guidance states that terms such as “downloadable virtual goods” on their own may be insufficiently specific and recommends identifying the nature of the virtual goods.
The Role of Class 9
Class 9 is particularly relevant to many digital products.
Depending on the precise nature of the offering, it may cover downloadable digital products and computer software. WIPO's current classification guidance specifically includes examples of downloadable virtual goods, such as virtual clothing intended for use in online virtual environments.
However, it would be incorrect to say that every digital product automatically belongs to Class 9.
The appropriate class depends upon what the applicant is actually providing.
A software product, an online non-downloadable service, an entertainment service and a retail service involving digital goods may fall into different classes.
Accordingly, classification should be based on the commercial substance of the offering rather than simply on the fact that the business operates online.
Virtual Retail and Marketplace Services
Virtual brands may also involve online marketplaces.
For example, a company may operate a platform where users purchase downloadable virtual clothing, digital artwork or NFT-authenticated digital files.
Such activity can raise service-classification issues in addition to the underlying digital goods.
The 2026 Nice Classification includes specific terms relating to online retail services for downloadable virtual clothing and online marketplace services involving downloadable digital image files authenticated by NFTs.
This reflects a broader development in trade mark practice: protection may need to cover not only the digital product itself, but also the commercial service through which the product is offered.
NFTs and Trade Mark Protection
NFTs create another layer of complexity.
An NFT is not, by itself, necessarily the underlying product or service. It is a digital identifier associated with a particular asset or transaction.
WIPO's 2026 examination guidelines therefore state that the term “NFT” on its own does not sufficiently identify a good or service for classification purposes. Applicants should instead specify the underlying goods or services associated with the NFT.
For example, the classification may depend upon whether the NFT authenticates:
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downloadable digital music;
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digital images;
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virtual clothing;
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physical clothing;
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retail services;
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software; or
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another identifiable good or service.
Therefore, a company seeking trade mark protection for an NFT-based business should carefully describe the actual commercial activity rather than simply filing for “NFTs”.
Virtual Environments and Class 42
Technology companies operating virtual environments may also require protection for software-related services.
The current Nice Classification includes services such as hosting virtual environments and providing online non-downloadable computer software for minting NFTs within Class 42.
This is particularly relevant to companies that develop the technological infrastructure behind virtual worlds rather than merely selling virtual products.
The distinction between a virtual product and the technological service supporting that product is therefore important.
Class 35 and Digital Commerce
Class 35 may become relevant where a business provides retail, marketplace or marketing services connected with virtual products.
The current classification includes, among other things, online retail services for downloadable virtual clothing and marketplace services involving certain NFT-authenticated digital files.
This demonstrates why a comprehensive trade mark strategy may require more than one class.
A company might simultaneously provide:
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downloadable virtual products;
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an online marketplace;
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software or technological infrastructure; and
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entertainment or other digital services.
Each activity should be analysed separately.
Can a Trade Mark Registered for Physical Goods Protect a Virtual Product?
This is one of the most important practical questions.
The answer should not be stated as an absolute “yes” or “no”.
A registration protects the mark in relation to the goods and services covered by the registration, subject to the Trade Marks Act.
If a mark is registered only for physical goods, the proprietor should not assume that the registration provides unlimited protection against every digital use of the same or similar mark.
At the same time, the absence of an identical registration for a digital product does not necessarily mean that the proprietor has no legal remedy.
Depending upon the circumstances, questions of similarity, relatedness of goods or services, reputation, likelihood of confusion, unfair advantage and passing off may arise.
Therefore, businesses entering the virtual economy should consider separate and strategically drafted protection for their digital offerings rather than relying entirely on an older portfolio covering physical products.
Distinctiveness Remains Essential
The fact that a product is digital does not remove the basic principles of trade mark law.
A mark must still satisfy the requirements of the Trade Marks Act.
A purely descriptive expression may face objections even if it is used in connection with an innovative digital product.
For example, a mark consisting only of a term describing the nature or characteristics of a digital product may have difficulty obtaining strong protection unless it has acquired the necessary distinctiveness.
This is important because businesses sometimes assume that adding terms such as “virtual”, “digital”, “meta” or “NFT” automatically makes a mark distinctive.
It does not.
The underlying question remains whether the mark is capable of distinguishing the goods or services of one undertaking from those of others.
Infringement in the Virtual World
The emergence of virtual products also creates new questions concerning infringement.
Suppose a company owns a well-known brand and another business uses an identical or similar mark on virtual shoes sold through an online platform.
Several questions may arise:
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Are the relevant goods or services similar?
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Is there a likelihood of confusion?
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Is the use commercial?
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Is the mark being used as a trade mark?
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Does the use take unfair advantage of the reputation of the earlier mark?
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Does the earlier mark possess sufficient reputation to support broader protection?
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Could consumers believe that the virtual product is officially licensed?
The answer will depend upon the facts.
The Trade Marks Act does not create a special “metaverse infringement” provision. Existing principles must therefore be applied to the new commercial environment.
Passing Off and Virtual Brands
Passing off may become particularly important where a virtual brand has acquired substantial goodwill but does not possess a registration covering every relevant digital activity.
The traditional passing-off analysis focuses on goodwill or reputation, misrepresentation and damage.
In a virtual environment, misrepresentation could potentially arise where consumers are led to believe that a digital product, virtual store, avatar accessory or NFT is connected with an established brand when it is not.
However, similarity alone is not enough.
A claimant would still need to establish the legal requirements of passing off on the facts of the particular case.
This is another reason why businesses should maintain evidence of their digital activities, advertising, sales, user engagement and reputation.
Trade Mark Enforcement Becomes More Difficult Online
Digital products create a practical enforcement problem.
A physical counterfeit product may be identified and seized from a particular location. A virtual product can potentially be uploaded, sold or distributed across multiple platforms and jurisdictions.
A single infringing listing may also be replicated rapidly.
As a result, trade mark owners should consider:
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monitoring online marketplaces;
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monitoring social-media platforms;
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watching domain names;
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monitoring virtual environments;
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identifying unauthorised NFT collections;
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preserving screenshots and transaction records;
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issuing appropriate takedown notices; and
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taking court action where necessary.
The international nature of virtual commerce also raises jurisdictional questions.
WIPO has noted that the metaverse creates important questions concerning jurisdiction, applicable law, enforcement and likelihood of confusion.
The Importance of Brand Clearance
The virtual economy also makes pre-launch clearance increasingly important.
Before launching a digital product, a business should search for potentially conflicting marks in the relevant classes.
This should not be limited to an exact-word search.
Depending upon the circumstances, the search may need to consider:
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identical marks;
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phonetic equivalents;
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similar spellings;
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logos;
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related goods and services;
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domain names;
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social-media handles; and
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relevant digital or virtual products.
WIPO's Global Brand Database can assist applicants in searching and selecting goods and services terms, although WIPO itself recommends that applicants also consult national or regional trademark databases.
For an Indian filing, therefore, a proper search of the Indian Trade Marks Registry remains important.
A Strategic Trademark Portfolio for Virtual Businesses
A business operating in the digital economy should think about its trade mark portfolio as a long-term commercial asset. Depending upon its activities, it may consider protection for:
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The core brand: The main name of the business or digital platform.
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Digital products: Specific downloadable or virtual goods.
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Platform services: Software, virtual environments, marketplaces and related services.
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Entertainment: Where the business provides gaming, entertainment or other content services.
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Physical products: Where the same brand is also used for traditional goods.
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Logos and device marks: Particularly where visual identity is commercially important.
The precise classes should be determined from the actual goods and services rather than by adopting a generic “digital” filing strategy.
What Businesses Should Do Now
Businesses entering the virtual market should consider a few practical steps.
1. Identify the actual digital product
Do not simply describe the offering as a “virtual product”. Identify exactly what the customer receives.
2. Select the appropriate classes
Classification should correspond to the actual goods and services being offered.
3. Protect the brand early
A business should consider filing before investing heavily in the development and marketing of a digital brand, subject to the applicable filing strategy and use requirements.
4. Maintain evidence of use
Keep records of advertisements, platform listings, sales, user engagement and other evidence showing commercial use and reputation.
5. Monitor digital platforms
Trade mark protection is considerably less effective if unauthorised uses are not detected and addressed.
6. Review contracts
Licensing agreements, platform terms and agreements with creators should clearly address ownership and permitted use of trade marks and digital assets.
Conclusion
The growth of virtual brands and digital products does not make traditional trade mark law irrelevant. Instead, it requires existing principles to be applied carefully to a new commercial environment.
Indian trade mark law already provides a broad statutory framework capable of protecting marks used in relation to goods and services. However, businesses should not assume that a registration for a physical product automatically provides complete protection for every corresponding virtual product.
Classification has become particularly important. The current Nice Classification contains specific terminology for various virtual goods, NFT-related products and services, virtual environments and digital marketplaces.
The central lesson is therefore straightforward: virtual brands should be protected as carefully as physical brands, but the protection must be tailored to the actual digital goods and services being offered.
As the line between physical and digital commerce continues to disappear, trade mark strategy will increasingly have to move beyond the traditional shop, website and product package. Virtual environments, digital marketplaces, software platforms and other emerging forms of commerce are likely to become important parts of brand protection.
For Indian businesses, the best approach is not to wait for a dispute to arise. A well-planned trade mark portfolio, accurate classification, proper evidence of use and continuous online monitoring can provide a stronger foundation for protecting brand identity in the digital economy.
