“Mind the (Virtual) Gap”: A Critical Analysis of UK and Japanese Copyright Exceptions Relating to Immersive Environments and the Metaverse

Abstract This paper explores the future of immersive environments such as the metaverse and considers the applicability and effectiveness of the freedom of panorama and incidental inclusion exceptions. Drawing on the laws of the UK and Japan, the paper demonstrates that these exceptions can indeed be beneficial in designing the metaverse although they are riddled with challenges. Whilst the UK’s freedom of panorama exception is broader than other countries, the wording of this exception restricts its use when compared to Japan’s broader and inclusive terminology – or even to the wording of the EU Directive. Similarly, the incidental inclusion exception is beneficial but yet again the manner in which the UK has interpreted it raises issues. In conclusion and in drawing a comparison between the two countries, the paper establishes that whilst these exceptions can effectively be applied to the metaverse, the UK can certainly learn lessons from Japan. In this context, the paper calls for reform and policy change.