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Arent Fox Becomes First Big Law Firm to Buy Property in the Metaverse

February 17, 2022

Law.com (sub.req.) reported on February 15 that Arent Fox has bought a digital plot of land in the metaverse, the first big law firm to establish a serious presence there.

In an interview with The American Lawyer, firm chair Anthony Lupo said the firm is setting up a virtual office in the metaverse because that’s where its clients are moving.

How did this come about? Global accountancy firm PwC purchased digital land in a popular virtual world called The Sandbox, for over $10,000 as a nonfungible token (NFT) using that world’s SAND cryptocurrency. Arent Fox assisted PwC with that transaction. Along the way, Arent Fox made the decision to enter the virtual world itself.

Arent Fox also has assisted several entertainment networks and NBA teams, and several fashion clients build a presence in the metaverse, including Diesel and Victoria’s Secret.

So, what is the metaverse?

It is the name for the combined network of 3D virtual worlds in which people work, play and socialize. Often described as the joining of the physical and the digital, well-known examples of these spaces include the Fortnite and Roblox games, as well as socializing space Second Life. Now big business is setting up shop in virtual worlds.

Arent Fox regards itself as a leader in new technological spaces, being one of the first major firms on the internet and offering legal services in internet chat rooms. The firm was also an early innovator in helping clients with telemedicine and online distance education.

The firm is now building its new offices which will be a place for lawyers and clients to meet for business or social occasions and a place to share information. Visitors will enter the office by walking down the street using their browser or virtual reality equipment and entering the offices through the front door.

Arent Fox is building its metaverse office in Decentraland, in the Fashion/Retail district, to be close to clients.

Arent Fox crypto chair James Williams said the firm was looking to the future. “The platforms you hear most about are the gaming platforms. But that’s not where the future is. In places like Sandbox and Decentraland you’re buying in locations just like you would buy a Rodeo Drive. You’re trying to get in early,” said Williams, adding that the idea is to show clients that you’re smart and familiar with the metaverse. “We want to show our clients: We know this world; look, we bought in this world, and we can help them navigate this world.”

Many thought leaders see the metaverse as the web 3.0, critical and central to the internet and online business. Williams said, “And even if that’s not the case, we still have a lot of clients moving to this place now, and we want to be where our clients are.”

The outlay was “less than the cost of an advertisement in American Lawyer,” quipped Lupo, adding that the investment is already providing the firm with financial as well as reputational gains. “Since we bought the property, its value has already increased 25%”, he said.

While retail brands are flocking to the metaverse, Lupo and Williams believe the next wave will be business service companies and financial institutions.

Some businesses may be cautious and not fully understand the Metaverse.

“There is a lot of curiosity, but there’s also a lot of confusion about the metaverse, partly because nobody knows what the metaverse is,” said Lupo. “Arent Fox’s move to the metaverse is not only symbolic. We are attempting to find the solution and actually operating in the space. We don’t know what the metaverse will be in five years, but we’re not waiting five years to find out. We’re going to help iterate that future.”

Williams said Arent Fox’s “dual charge” in entering the metaverse is to “understand from the client perspective,” but then to also “develop use cases” for lawyers: “Not only the delivery of legal services, but also training aspects, being able to assemble individuals from different offices, as well as the networking and business development aspects of having a presence in the metaverse.”

The move to the metaverse might assist law firms better connect with their own people in a world where flexibility and remote work is increasingly important to employees.

We are watching the metaverse with interest – and caution – as law firms begin to set up offices there.

Sharon D. Nelson, Esq., President, Sensei Enterprises, Inc.
3975 University Drive, Suite 225, Fairfax, VA 22030
Email: Phone: 703-359-0700
Digital Forensics/Cybersecurity/Information Technology
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