Formulation of "Virtual City Guidelines ver.2.0", guidelines for operation and use of Metaverse/city-linked Metaverse

Press release

On July 20, 2023, the "Virtual City Consortium" organized by KDDI Corporation, Tokyu Corporation, Mizuho Research & Technologies Co., Ltd., and Future Design Shibuya established the "Virtual City Guidelines ver.

In ver.1 of April 2022, we have formulated the items to consider when establishing/operating the Metaverse, such as interlocking between the real city and the Metaverse, reproducibility of scenery, and protection of rights of avatars. In ver.1.5 in November 2022, we have updated the use of NFTs to realize the Creator Economy.

In this ver.2.0, we have updated the items related to financial transaction methods and regulatory laws to reflect items such as the legal protection of content, which have been discussed by other organizations and consortiums, including central ministries and agencies, and to realize an autonomous economic zone where participants can conduct financial transactions with peace of mind within the Metaverse. In addition, we organized the points to note when using AR/MR content in public spaces and the legal responsibilities associated with the content distribution side. By formulating these guidelines, we aim to make the Metaverse usable on a daily basis without feeling any hurdles, and to encourage the public nature and creativity of users.

The "Virtual City Guidelines" are based on the discussions and knowledge of businesses and experts involved in the operation of Virtual Shibuya and urban development activities in the real city, and stipulate points to note and considerations when establishing and operating the Metaverse/urban-linked Metaverse, as well as points of contention for the realization of a creator economy.

In the future, we will continue to operate these guidelines and actively participate in rule-making discussions, aiming to develop the industry of the Metaverse and the city-linked Metaverse, and to create a space that users, stakeholders, and platform providers can use safely and securely.

About "Virtual City Guidelines ver.2.0"

These guidelines are intended for the Metaverse and the Intercity Metaverse. In the Metaverse, we are sorting out issues such as protection of rights such as copyrights/portrait rights/ownership rights, and interlocking with existing cities and reproducibility of landscapes in the city-linked Metaverse.

"Virtual City Guidelines ver.2.0" https://shibuya5g.org/research/docs/guideline.pdf

Main update items

・Means of financial transactions and regulatory laws (Item: [Economic activities on the Metaverse])
It is expected that transactions of contents and services on the Metaverse and the city-linked Metaverse will become active. We have stipulated the economic activities expected in the future, the associated advantages and disadvantages of each payment method, as well as related regulations and precautions for international transactions.

・ Reflection of discussions in the government, including rights protection (item: [Organization of rights relationships of virtual objects and points to note], etc.)
Regarding the protection of rights of virtual properties such as avatars organized in ver.1, based on the results of discussions at the Cabinet Office Metaverse Public-Private Partnership Council and the Ministry of Internal Affairs and Communications Metaverse Study Group, we have updated the content, such as in what cases protection is permitted.

・Precautions when distributing AR/MR content in public spaces (item: [Utilization of city-linked metaverse in real space])
When the virtual space and the real city are linked, the use of AR/MR content is expected as a means of connecting them. We have sorted out the places where content can be viewed safely and the legal responsibilities associated with the content distribution side.

Comments from the advisory board (participating experts)

Digital Hollywood University President
Tomoyuki Sugiyama (Doctor of Engineering)
Various economic activities are possible in the city-linked metaverse. Active economic activities will be the driving force for the survival of each city-linked metaverse, but there are a wide variety of laws and ordinances that can be related, and it can be said that one of the achievements of these guidelines is that they have been comprehensively shown. All kinds of digital technologies gather in the city-linked metaverse. A city where modern lifestyles and technology meet and a new culture is nurtured is also a place for social experiments. People will repeat all kinds of trial and error, and from there a sophisticated democracy will be formed, which will be fed back to the real world.

International University of Japan Global Communication Center Principal Researcher Professor Research Director
Tomoaki Watanabe (Ph.D., Mass Communication)
Reflecting the wide range of functions that the Metaverse can play in realizing the richness and prosperity of the Metaverse, this version summarizes discussions on a wider range of issues than the previous version. It also includes discussions on economic transactions, landscapes, place creation, and building relationships with stakeholders that exist in real urban spaces. We hope that it will serve as a reference for a wide range of people who are interested in the design and operation of the inter-city Metaverse and other Metaverses in general, and that it will help in the search for an attractive Metaverse.

Professor, Graduate School of Engineering, The University of Tokyo
Hideki Koizumi (Doctor of Engineering)
How people acquire locality in the Metaverse may be the most important issue for the spread and development of the Metaverse. E-commerce and NFT-based product trading services do not necessarily require location. However, if people instinctively seek locality, the ability to enjoy shopping and cultural activities with locality, and the ability to discover and create unique locality together with other people, may be the essential appeal of the Metaverse and the inter-urban Metaverse that Internet-based services did not have until then.

XR can also be said to be an effort to expand the locationality of a real city with a new “locationality” provided by the virtual world, so we believe that we can find a direction for expanding utilization and participation by exploring the possibility of its utilization in the real world and deeply considering the meaning it brings to people.

Representative Lawyer, SAKURA Law Office
Kenshiro Michishita
Since the establishment of the Virtual City Consortium, I have been involved in the formulation of virtual city guidelines as an advisor. Even in the last three years, many companies have participated in the Metaverse business, and I feel that the environment surrounding the Metaverse has continued to change rapidly. Specifically, private companies have begun to develop various Metaverse services, public Metaverses have also appeared, and it has become clear that social implementation of Metaverses is progressing. The use of the Metaverse by Generation Z and Generation α is also expanding, and it can be said that the necessity and importance of rule-making in the Metaverse space is increasing as daily life in a digital environment is becoming commonplace.

In order to encourage companies to enter the Metaverse business and ensure that users can use the Metaverse space with peace of mind, attention is being focused on platform governance that responds to the diversity of users. There are a wide variety of issues to consider regarding the Metaverse space, such as intellectual property rights in the Metaverse space, consumer protection perspectives, avatar rights, and organic relationships with other cutting-edge technologies.

Under such circumstances, we will continue to make further efforts so that this "Virtual City Guideline" can serve as a guide for stakeholders related to the Metaverse space.

KDDI Corporation/Keio University Graduate School of Media and Governance Specially Appointed Lecturer
Hirokazu Kawamoto (Master in Policy and Media)

One year after the announcement of the Virtual City Guidelines, the Metaverse has been discussed from various perspectives, and the situation surrounding the Metaverse has changed from the enthusiastic boom of the COVID-19 crisis to the phase of accumulating social implementation. Digitally constructed virtual environments are not only available only on the Internet, but are starting to expand their range of use to complex environments that overlap real and virtual environments that can be used in everyday life.
In light of this situation, the consortium has updated the guidelines by reflecting discussions held by the government and other organizations, as well as sorting out issues related to the spatial nature of the virtual environment, economic transactions, and use in mixed environments. We will continue to explore so that the Virtual City Guidelines can help everyone involved in the Metaverse and the inter-city Metaverse, and become part of the foundation for co-creation and competition.

Background and purpose of formulating “Virtual City Guidelines”

In recent years, people have focused on living and doing business in a virtual space on the Internet called the Metaverse, but the Metaverse, which is still under development, has many issues that need to be sorted out, such as ownership rights of digital assets and "virtual properties" such as portrait rights of avatars, which are not subject to legally protected intellectual property rights under current law, and interoperability between platforms.

In addition, issues such as the reproducibility of the scenery unique to the urban interlocking type that expands the real city with the metaverse and economic cooperation with local governments were clarified through the activities of Shibuya Ward's official "Virtual Shibuya", which was provided ahead of the others in the industry.

In this consortium, we held discussions with relevant ministries and agencies, experts, etc., and documented them as guidelines so that other local governments and Metaverse-related businesses can refer to them.

In addition, in anticipation of the development of the Metaverse originating in Japan, we will list the items that require further discussion with related organizations and propose the direction of continued discussion.

Overview of the “Virtual City Consortium”

Based on various knowledge based on the operation of the distribution platform "Virtual Shibuya" officially approved by Shibuya Ward, it will be open for the development of the Metaverse from Japan, such as the development of similar models in other cities and the development of new businesses and technologies in the future. It is an organization whose purpose is to conduct discussions and research, formulate guidelines, and disseminate information.

Established: November 9, 2021
Participating companies: KDDI Corporation, Future Design Shibuya, Tokyu Corporation, Mizuho Research & Technologies Co., Ltd. (as of July 12, 2023, in alphabetical order)
Representative: KDDI Corporation Kazuhiko Chuma
URL: https://shibuya5g.org/research

<Advisory board (participating experts)>
Tomoyuki Sugiyama, President of Digital Hollywood University (Ph.D. in Engineering), Tomoaki Watanabe (Ph.D., Mass Communication), Chief Researcher, Professor, Center for Global Communication, International University of Japan, Professor, Graduate School of Engineering, The University of Tokyo/Representative Director Future Design Shibuya Hideki Koizumi (Doctor of Engineering), Kenshiro Michishita, Lawyer, SAKURA Law Office, KDDI Corporation/Keio University Graduate School of Media and Governance, Specially Appointed Lecturer, Ministry of Economy, Trade and Industry Minister's Secretariat Extraordinary Expert Advisor Daikatsu Kawamoto (Master's Degree in Policy and Media)

<Observer>
Content Industry Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry, Shibuya Ward, Osaka Prefecture/Osaka City, Expo Promotion Bureau, Exhibition Planning Division

<Main services of each company>
KDDI: Making full use of 5G and advanced technology, we will share knowledge on the development of virtual city, the au version of the metaverse, and technology and services.
Tokyu: In anticipation of interlocking with virtual space, we will share community development activities and business knowledge in real cities.
Mizuho Research & Technologies: Supports consortium management and guideline creation.
Future Design Shibuya: Promote collaboration between the government and private companies.

<About Shibuya Ward Official Virtual Shibuya>
"Virtual Shibuya", which will celebrate its 4th anniversary in 2023, is Japan's first local government-approved city-linked metaverse launched in May 2020 by the "Shibuya 5G Entertainment Project", which is composed mainly of KDDI, Future Design Shibuya, and Shibuya Tourism Association. Since its launch in May 2020, we have regularly held virtual events such as "#Shibuya Ghost in the Shell NIGHT by au 5G", "Virtual Shibuya au 5G Halloween Festival", and "Shibuharu Festival". More than 1.3 million people from all over the world have participated and won various awards such as the 7th JACE Event Award Grand Prize, Minister of Economy, Trade and Industry Award and London International Awards 2022 Creativity In The Metaverse Gold.