Term “Virtual” in the legal context
Definition and legal classification
The term “Virtual” (German: “virtuell”) in a legal context refers to phenomena, states, or objects that do not physically exist but are simulated or provided via digital technologies. In legal terms, “Virtual” regularly points to circumstances arising in digital environments, such as in computer networks, on the internet, via software, or within new digital technologies like Virtual Reality (VR) and Augmented Reality (AR).
The legal classification of virtual circumstances largely depends on their technical design, need for protection, and societal relevance. Virtual assets, virtual identities, and virtual actions are of particular importance.
Virtual goods and assets
Term and manifestations
Virtual goods are digital items or rights that exist exclusively in digital environments. Typical examples include virtual currencies (e.g., Bitcoin), digital game characters, avatars, digital artworks (“NFTs”), or digital usage rights (e.g., access licenses to software or online databases).
Ownership and possession of virtual goods
Under German law, the legal position regarding ownership and possession of items is determined by the German Civil Code (BGB), which in § 90 BGB treats only tangible items as “things”. Virtual goods, which do not physically exist, generally do not meet this requirement and are therefore classified as rights, claims, or intangible assets. Legal claims to virtual goods are therefore regularly governed by contractual or copyright regulations, or as protected legal positions under general personality rights.
Transferability and trading of virtual goods
The trade of virtual goods is subject to the general civil law provisions on legal transactions. As long as virtual goods can be individualized and distinguished, they may be the subject of contractual agreements, especially purchase, exchange, and leasing contracts. In particular, in online games or digital marketplaces, the providers’ general terms and conditions (AGB) often govern users’ rights and obligations in handling virtual goods.
Tax aspects of virtual goods
Virtual goods can trigger income and VAT obligations under national tax regulations. The tax treatment depends on the type of virtual good and its use. For example, profits from trading cryptocurrencies in Germany are considered other income according to § 23 EStG. The sale of virtual goods may also be subject to VAT.
Virtual identity and digital personal rights
Protection of digital identities
Virtual identities, such as user accounts or avatars, are inseparably linked to an individual’s personal data. The General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG) comprehensively regulate the handling of personal information in digital spaces and secure rights to information, deletion, and correction. Unauthorized use or appropriation of a virtual identity may result in criminal and civil consequences under relevant data protection laws and personality rights.
Rights to one’s own image and name rights in virtual spaces
The use of images or names in virtual environments is subject to the provisions of the Act on Copyright in Works of Art and Photography (KUG) and the German Civil Code (§ 12 BGB). Protection of one’s own name and image applies in particular to digital representations, simulations, and avatars in virtual worlds or social networks.
Virtual Reality, Augmented Reality, and legal challenges
Liability for content and actions in virtual worlds
In virtual environments, real legal interests can be infringed, for example, by insults, copyright violations, or unauthorized dissemination of data. Liability for actions in virtual spaces is assessed under the general principles of criminal and civil law. In particular, platform operators may under certain circumstances be liable as contributors or indirect offenders if they fail to remove unlawful content.
Conclusion of contracts and declarations of intent in virtual realities
Virtual spaces make it possible to conclude contracts through digital communication or interactions using avatars. The general laws on offer and acceptance apply to the validity of such agreements. Special challenges arise with regard to evidentiary requirements and authentication of the acting digital identities, so that supplementary technical measures (e.g., digital signatures) may be implemented.
International and European regulations on virtual goods
European legal framework
The European Parliament and the Council have enacted various regulations and directives regarding the regulation of digital content and services. Notable among these are the Directive on digital content and digital services (Directive (EU) 2019/770) as well as the Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114). These legal frameworks create harmonized standards for the legal treatment of virtual goods and services in the European Union.
International agreements and principles
International principles for the protection of digital rights can be derived from agreements such as the WIPO Copyright Treaty or the Convention on Cybercrime (Budapest Convention). However, the legal classification and protection of virtual phenomena can vary by country and depends on the respective national legal system.
Criminal law aspects of virtual conduct
Cybercrime and virtual offenses
Offenses in virtual space are subject to general criminal law provisions, provided that actual or digital legal interests are violated. Examples include data theft, fraud, or cyberbullying. The Criminal Code (StGB) and the Act on Data Protection in Teleservices (TDDSG) contain relevant provisions. Investigating and prosecuting such offenses frequently involve complex technical and international issues.
Sanctions and legal enforcement
The enforcement of rights and sanctioning of offenses in virtual space may present particular difficulties. Challenges mainly arise in identifying offenders and in international legal prosecution, as virtual actions often take place across national borders.
Summary
“Virtual” in legal context describes all forms that exist or are created within digital or simulated environments. The legal treatment of virtual goods, actions, and identities presents legal systems with new challenges and leads to ongoing adjustments of existing norms to the particularities of digital technologies. The classification of virtual phenomena affects a wide range of legal areas such as civil law, data protection law, copyright law, criminal law, and tax law. Current and future developments in legislation, case law, and technological innovation require continual review and adaptation of legal concepts to digital reality.
Frequently asked questions
What legal requirements must be met for holding virtual events?
Virtual events are subject to a variety of legal frameworks. Primarily, the General Data Protection Regulation (GDPR) is relevant with regard to data protection, especially if personal data of participants are processed. Organizers must transparently provide information on the collection, processing, and storage of data and, where necessary, obtain consent. Another key criterion concerns copyright: presentations, videos, or music pieces used as part of a virtual event may require licensing or approval from the rights holders. Contract law is also relevant: a contractual relationship regularly arises between organizer and participant, which can be specified through general terms and conditions (AGB). These must be validly incorporated and comply with statutory provisions. For international participants, the applicable law must also be reviewed. Finally, for paid events, tax law provisions and, for certain professions and topics, specific professional regulations may apply.
How is liability regulated in the event of technical disruptions during a virtual event?
Liability for technical disruptions is primarily determined by the contract between organizer and participant. If there are terms and conditions (AGB), these should include provisions for such cases. In the event of outages or interruptions, the participant may—in some circumstances, depending on the nature and duration of the disruption—be entitled to a reduction of the participation fee or a (partial) refund. Organizers are only generally liable for consequential damages or lost profits in cases of intent or gross negligence, unless otherwise regulated by mandatory legal provisions. Particularly relevant legal bases include the German Civil Code (§§ 280 ff. BGB) and the Telecommunications and Telemedia Act. It is advisable for organizers to contractually specify technical minimum requirements and participants’ obligations to proactively minimize risk.
What special data protection requirements apply when using video conferencing tools?
When using video conferencing tools for virtual events, organizers are required to comply with the GDPR. Central aspects include selecting a data protection-compliant provider, ideally with a registered office or branch in the EU, proper data processing agreements (Art. 28 GDPR), and informing participants about the nature, scope, and purposes of data processing as well as their rights (Art. 13 ff. GDPR). Additional consent is required for storing or recording video content. Organizers must also ensure data security measures, such as access controls, encrypted transmissions, and secure authentication methods. Regular review and documentation of data protection measures (data protection impact assessment) may be mandatory depending on the risk level.
What needs to be considered legally when involving third parties (e.g. external speakers or sponsors)?
Involving third parties, such as external speakers or sponsors, requires clear contractual agreements regarding the respective rights and obligations. This includes clarifying usage rights to content provided (copyright), agreements on confidentiality and handling participant data (data protection), as well as contractual arrangements for fees and liability. Where third parties act on behalf of the organizer, this generally constitutes a service contract, which can also have tax implications. For sponsors, competition law must also be considered, especially with regard to advertising labelling and transparency for participants in accordance with the Telemedia Act and the Act Against Unfair Competition (UWG). The disclosure of personal data to third parties is only permissible based on informed consent or statutory authorization.
What are the specifics to consider regarding recording and publishing virtual events?
Recording and subsequent publication of a virtual event constitutes a significant interference from both a data protection and copyright perspective. The legal basis for recording must be clearly defined and communicated; as a rule, the express consent of all affected persons is required (Art. 7 GDPR). Consent must be given voluntarily, in an informed and traceable manner, and must be revocable at any time. From a copyright perspective, it must be ensured on publication that no third-party rights (e.g., to presentations, images, music) are infringed. Depending on the target audience, additional provisions regarding youth protection or media law may apply if distribution takes place on the internet. Employers must also check and observe employment law requirements when employees are involved.
What are the consequences of violations of legal requirements in the context of virtual events?
Violations of legal requirements, especially in data protection (GDPR), can result in heavy fines, which depending on the severity can reach up to 20 million euros or 4% of the worldwide annual turnover of a company. Damages claims by affected individuals are also possible. In the area of copyright, rights holders can seek injunctive relief and damages, and issue cease-and-desist warnings at a cost. Competition and media law violations can result in injunctions, reputational damage, and competition lawsuits. In tax law, mistakes in billing may lead to back payments and, where applicable, criminal proceedings. Diligent legal review and implementation of requirements are therefore essential.
What are the requirements for the accessibility of virtual events under German law?
The General Equal Treatment Act (AGG) and specific regulations on accessibility—especially from the Equal Opportunities for Disabled Persons Act (BGG) and the Accessible Information Technology Ordinance (BITV 2.0)—also apply to virtual events. Public organizers are fundamentally required to make their services accessible to people with disabilities. This includes, for example, subtitles for videos, provision of live transcriptions, an accessible design of the digital platform, and alternative access options for blind and visually impaired participants. While private providers face less stringent requirements, disadvantages can nevertheless have legal consequences here too. Strict compliance with relevant DIN standards and recommendations from the Web Content Accessibility Guidelines (WCAG) minimizes legal risks and promotes social inclusion.
