Mableson ASU Session

INTRODUCTION TO VIRTUAL WORLDSSESSION 1

Mableson Law Group © 2010 Connie J. Mableson, PLLC 1

Connie J. Mableson

Governance of Virtual WorldsLAW791/EDT791

WHAT IS A VIRTUAL WORLD?


Social & Virtual Worlds• Text based

– Twitter/Facebook/MySpace/LinkedIn– Text based MUDs

• 2D Graphical & Interactive Environment– Playfish/Zynga

• 3D Graphical & Interactive Environment– UGC (Second Life)– Non-UGC (WoW)


2D Games & Players

Game Users

Zynga Games 100M monthly users

Zynga (FarmVille) 74M daily users

Zynga (Mafia Wars) 7M users

PlayFish Games 11 titles/61M users


Definition of 3D Virtual World

[A] Virtual World is a place you co-habit with hundreds of thousands of other people simultaneously. It is

persistent in that the world exists independent of your presence, and in that your actions can permanently shape the world. The fact that you exist with other real people from around the globe adds a level of

immersion that just has to be experienced to believe. - Ultima Online Website (2003)


Definition, part 2• Computer-based• 3D• Artificial, fictitious, imaginary, intangible &

invented• Dynamic• Persistent• Immersive• Interactive• Environment/PlaceMableson Law Group © 2010 Connie J. Mableson, PLLC 6

Virtual World aka’s• MMO (massive[ly] multi-player online)• MMORPG (massive[ly] multi-player online role

playing game)• Layered gaming• TransMedia entertainment experience• TransMedia storytelling• Interactive narrative design• Real time strategy (RTS)• Real time tactical (RTT)• MetaverseMableson Law Group © 2010 Connie J. Mableson, PLLC 7


Origins of the Metaverse1981: Vernor Vinge, TRUE NAMES1984: William Gibson, NEUROMANCER1989: Ghost in the Shell (Japan)1992: Neal Stephenson, SNOW CRASH1999: The Matrix

Avatar• Hindu word• S: (n) embodiment, incarnation, avatar (a new personification

of a familiar idea) "the embodiment of hope"; "the incarnation of evil"; "the very avatar of cunning"

• S: (n) avatar (the manifestation of a Hindu deity (especially Vishnu) in human or superhuman or animal form) "the Buddha is considered an avatar of the god Vishnu“

• A representational proxy• Persistent extension of RT (real time) user• May have rights independent of user• Difficult to separate the Avatar from the user


http://wordnetweb.princeton.edu/perl/webwn?o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&s=avatar&i=0&h=00�

http://wordnetweb.princeton.edu/perl/webwn?o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&s=embodiment�

http://wordnetweb.princeton.edu/perl/webwn?o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&s=incarnation�

http://wordnetweb.princeton.edu/perl/webwn?o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&s=avatar&i=1&h=00�

AN OVERVIEW OF SECOND LIFE & WOW



Second Life

Map of Second Life

• http://maps.secondlife.com/• 170th largest country in the world based on

landmass• Linden Research (Linden Labs) owns

Second Life


http://maps.secondlife.com/�

Second Life Business Model

• Land Auctions• Region Sales• Land Use fees (monthly)• Linden Exchange• Membership (Subscription) Plans

– Basic is $0 but cannot own mainland– Premium is $9.95/month and comes with support

services unavailable to basic membership


UGC & Second Life Copyright

3.2 You retain copyright and other intellectual property

rights with respect to Content you create in Second Life….

- Linden Research, Inc., TOS (1/15/10)



RMT (Real Money Transactions)

Linden Dollars ↔ $USDLinden Currency Exchange

Second Life Stats (M. Linden 1/10-Mark Kingdon)

• Cloud computing: Cloud computing (7,000 servers with more than 300 terrabytes of data and 20 gigabits of network traffic)

• User-generated content: By democratizing content creation, Second Life enables anyone to create a world limited only by their imagination.

• Virtual goods: Content creators populate Second Life with 250,000+ new objects each day that can be bought, sold, traded, collected, shared or gifted.

• Micro-transactions: The ability to make, own and sell content has created a powerful Second Life economy in which user-to-user transactions exceeded $550 Million in 2009, up from $360 Million in 2008.

• Social tools: Second Life, an inherently social experience, has spawned more than 446,000 active groups, while Residents type more than 7.5 Billion words of text chat every month.

• VOIP: Residents consume more than 1 Billion minutes of voice per month (delivered via VOIP).



What if you could create your own Virtual World?

OpenSim & SL Enterprise

• Website:Hosting = Virtual World:Grid• Grid is multiple interconnected servers• Grid has software installed that allows virtual worlds

to be rendered, databases, authentication, and much more

• OpenSim is an OPEN Grid using Open Software developed by volunteers and corporate sponsors

• SL Enterprise is a turnkey virtual world hosted on the SL Grid for private enterprise use.


WoW• No UGC. All content is created by owner.• UGC in the form of objects cannot be brought

into the world.• UG “Mods” may be brought into the world as

long as they do not violate TOS/EULA.• No RMT. Buying gold with USD or other

“real” money for use in world is against EULA/TOS.


WoW• Went Live in 2003• Blizzard/Vivendi Games, SA (French)• 11.5 Million subscriptions as of 12/09• Revenue Model

– Purchase Software (retail or download)– Expansion Packs (2) and Cataclysm (2010)– Monthly Subscription Fee/account ($14.99)– Real Goods– Virtual Goods– 2009 Approx. revenues $18.72 billion


THE LANGUAGE OF VIRTUAL WORLDS


LEET SPEAK• leet, also known as eleet or leetspeak, is an

alternative alphabet for the English language that is used primarily on the Internet

• the term leet is derived from the word elite • leet is also used as an adjective to describe

formidable prowess or accomplishment• uses substitutions of other characters, letters

or otherwise, to represent a letter or letters in a word


Leet Speak Examples

• Owned & Pwn (Generally pronounced "Owned" "poened") both refer to the domination of a player in a video game

• Pwnz, laterz, etc.

• KEK- Orc for LOL

• n00b - means and derives from newbie (as in new and inexperienced or uninformed)

• nub = noob


WHY VIRTUAL WORLDS ARE WORTHY OF STUDY


What happens in Vegas, stays in Vegas™



What happens in Virtual Worlds, does not stay in Virtual Worlds


What happens in the Real World,

does not stay in the Real World

MAGIC CIRCLE



WHY STUDY VWS?• Cultural and language boundaries are porous• Economic boundaries are porous• People are paying for virtual goods-nothing except a

perceived value of the brand• VWs mean a great deal to a large number of people• VWs are the largest creative collaboration of

humankind in the history of the real world.• They will become an increasingly important social

system in the future• Experiment in social sciences, macrocultures,

collaboration, and human behavior• Emerging area of how online communities are and will

be governed

Gartner predicted that 80% of all active internet users will have a virtual

world presence by 2011.– Gartner Research, 2007


Governance• People slip in and out of complex social networks that cross

online and offline space• People have a tendency to misbehave in private and social

spaces• Complex social networks need some level of governance to

prevent mass chaos and harm • laws, statutes, regulations, codes, standards, moral and social

norms, dispute resolution systems, accepted customs and usage, and on and on (“laws”).

• What are these laws (what), origin of these “laws” (who), reason for laws (why), implementation and enforcement (how) in Virtual Worlds (and effect in the Real World)=Governance


INTRODUCTION TO GOVERNANCESESSION 2


Connie J. Mableson


WHAT IS “GOVERNANCE”?


Definition of Governance-OED

• From the greek verb which means to “steer”

• Controlling, directing, or regulating influence; control, sway, mastery


Definition of Governance-Black’s Law Dictionary

Govern, vb (of a precedent) to control a point in issue

Governing body, 1. government 2. a group of officers or persons having ultimate control


Definition of Governance-other

• The activity of governing• The kinetic exercise of management power and

policy• Politics is one means by which the process

operates• Top-down• Bottom-up


What word did those definitions have in common?


Governance=Control=Power

• *CONTROL*• Toward a result based on an interest• Based on *RELATIONSHIPS*• What are the ‘multitude of programmes, strategies,

tactics, devices, calculations, negotiations, intrigues, persuasions and seductions aimed at the conduct of individuals, groups, populations’? (Rose, 1999)

• Balance of Power



Governance is not Government

but

Government’s governing process is Governance

Governance Analysis


Governance of Real Life-US

How is Real Life Governed?(What, Who, Why …controls

behavior & actions)


Governance of Virtual Worlds

How is SL Governed?How is WoW Governed?

(What, Who, Why …controls behavior & actions)


Governance of Virtual Worlds by Real Life ‘Laws”

WHO OR WHAT IN REAL LIFE GOVERNS

VIRTUAL WORLDS?

HOW ARE VIRTUAL WORLDS GOVERNED BY REAL LIFE LAWS?

DO VIRTUAL WORLDS NEED TO BE GOVERNED BY REAL “LAWS”?

WHY?



Are there any real life “laws” that govern or apply only to VW’s?


Are there any VW created “laws” that [are] [could]

[should] govern Real Life?

GOVERNANCE IN THEREAL WORLD


WHY?- Real World

• People tend to act in self-interest• Any collection of people will have conflicting

individual and common interests• No trust• A process(es) naturally evolves to resolve

conflicting interests• Otherwise, chaos, harm, anarchy, no universal

trusted system(s)


WHO is Governed (people, places, things)

• Individuals• Partnerships• Cultures and sub-cultures• Associations/Groups• Industry, trades, commercial transactions• Limited Liability Companies• Corporations (Profit & Non-profit)• Country-USA• Other countries/regions on Earth• Universe (moon, space probes)• Cyberspace


WHERE does it occur

• Laws of Physics (earth, water, sky) (theft of car vs. skyscraper)

• Separate territories or states based on geography

• Universe

• Digital only places (cyberspace)

• Virtual worlds (theft of car vs. skyscraper)


FORMS/TYPES OF GOVERNMENT & GOVERNANCE


Forms of “Government”

• Representative/Republic• Democracy• Dictatorship• Monarchy• Politburo• Religious• Organized Groups/Mobs• CorporateMableson Law Group © 2010 Connie J. Mableson, PLLC 52

Statutes, Codes & Regulations


Types of Governance

• - Statutes, Codes, ordinances, regulations enacted by a group of people

• - Religious principles• - Cultural morals & norms• - Custom & Practice (industry, commerce, trade)• - Standards and policies by “corporate” bodies• - Agreements/Contracts• - Geography & Architecture


US Statutes & Codes

• U.S. Constitution & Bill of Rights• United States Code = federal statutes• Code of Federal Regulations

(Administrative regs)


State Statutes & Codes

• State Statutes (Arizona Revised Statutes or A.R.S.)

• Code of State Regulations (Administrative Code)


Local Ordinances & Regulations

• County Ordinances• City/Town Ordinances• Local community rules and regulations

(HOA)• Property regulation (CC&R’s)


US JUDICIARY


US Judiciary-Federal

Supreme Court

Federal Circuit Court of Appeals11 Circuits & DC and Federal Circuit

U.S. District CourtPursuant to Federal Statute US Bankruptcy Court


State Judiciary

Arizona Supreme Court

State Court of Appeals

Superior Court In each County


COMMON LAW



Common Law is the body of law based on the English legal system. Common law evolved from custom and was the body of law created by and administered by the King’s courts. Generally, no statute or constitution applies to it. The law of the courts, historically.

“Commons”

Equally with or by all


CONTRACTS


Contracts• Written or oral (verbal)• Offer and acceptance• Consideration exchanged• Events of breach• Remedies• Choice of Law• Unenforceable (illegal subject matter, competency,

fraud in inducement)• Shrink-wrap & click-throughs


Licenses• Type of a contract• Permission to use property owned by another• Permission by State to conduct an activity• Do not own the property• Do not “own” the right (right granted by State

vs Bill of Rights)• Upon breach, lose the right granted and liable

for damages


Religion


Religions

• Religious principles about moral norms

• Organized Leadership

• Punishment & deterrence

• Social norms and standards

• Motivated by worldly or other-wordly benefits


Cultural & Social Norms


Cultural & Social Norms

Unwritten but accepted rules of behavior and conduct


Custom & Practice


Current Common Law

Custom and Practice in a particular trade or industry or environment

(creates the standard or the rule)(commercially reasonable)


GOVERNANCE OF VIRTUAL WORLDSBY VIRTUAL WORLDS


WHY?- Any difference from Real World?

• People tend to act in self-interest• Any collection of people will have conflicting

individual and common interests• No trust• A process(es) naturally evolves to resolve

conflicting interests• Otherwise, chaos, harm, anarchy, no universal

trusted system(s)


How does the “Game God” Govern?

• Game God owns the Virtual World-a dictatorship- no elected leaders- no functional government- only interaction is electronic or with customer service or on a complaint basis- power is in EULA/TOS (License to use vs UGC ownership)- power is in Code = Architecture/place- power is in surveillance- Common law as adopted or created by GG


How do SIM Owners Govern?

• Authority from the Game God – by code, zoning

• As to the individuals in the Community – by terms of entering the sim, by threat of kicking out without recourse to the Game God


How do Guilds govern?

Game God allows and encourages w/o oversightTypically run politburo-like

-close group controls leadership and membership-typically operate in their own best interests and not for that of the server or game-reputation still important


Community Associations

• Authority from the Game God – by code, zoning

• As to the individuals in the Community – by terms of purchasing/leasing the property, joining the organization, by threat of kicking out without recourse to the Game God


How do Individuals Govern?

This is the most interesting!


GOVERNANCE OF VIRTUAL WORLDS BY REAL LIFE “LAWS”


VWs Governed by Real Laws• Constitution ??• Statutes, Codes, ordinances, regulations enacted by

government (the state) FEDERAL yes-State sometimes• Agreements/Contracts = EULA/TOS/SIM Rules/Zoning

/EULA Choice of Law• Religious principles ??• Cultural morals & norms Yes• Custom & Practice (industry, commerce, trade) YES• Geography & Architecture = Code• NEW VW COMMON LAW


Questions


RMTSESSION 3


Connie J. Mableson


MONEY & BANKING


US CurrencyCoinage Act of 1965, Section 31 U.S.C. 5103,

entitled "Legal tender," which states:

"United States coins and currency … are legal tender for all debts, public charges, taxes, and dues."


What are Linden Dollars?• 1.4 Second Life "currency" is a limited license right available for

purchase or free distribution at Linden Lab's discretion, and is not redeemable for monetary value from Linden Lab.

• You acknowledge that the Service presently includes a component of in-world fictional currency ("Currency" or "Linden Dollars" or "L$"), which constitutes a limited license right to use a feature of our product when, as, and if allowed by Linden Lab. Linden Lab may charge fees for the right to use Linden Dollars, or may distribute Linden Dollars without charge, in its sole discretion. Regardless of terminology used, Linden Dollars represent a limited license right governed solely under the terms of this Agreement, and are not redeemable for any sum of money or monetary value from Linden Lab at any time.


Complete Control over Currency

You agree that Linden Lab has the absolute right to manage, regulate, control, modify and/or

eliminate such Currency as it sees fit in its sole discretion, in any general or specific case, and that Linden Lab will have no liability to you

based on its exercise of such right.


Linden Trading Limits• LindeX™ Exchange: Billing and Trading Limits • Why there are billing and trading limits? These limits exist so

that we can better accommodate the needs of our Residents while mitigating our fraud risk.

• Your current billing and trading limits. If you're logged in your current limits are highlighted below.

• How buyer's or seller's fees relate to billing and trading limits? The buyer's and seller's fees on the LindeX exchange are not related to billing and trading limits, they are fixed and everyone is subject to the same fee schedule. Only the rolling 24 hour and rolling 30 day limits vary.

• How to request review of your limits? You may request a review of your account to increase your limits.


Linden Dollars = Real money?The Australian government has determined that income earned in virtual economies like SL and

WoW should be taxed.

“The real world value of a transaction may form part of your taxable income, even if it is in Linden

dollars,” a spokeswoman for the Australian Tax Office told the Sydney Morning Herald. “If you

are getting a monetary benefit then it’s not treated any differently - normal rules apply.”


Monopoly Money?


Currency Exchange-SL1.5 The Service currently includes a component called "Currency Exchange" or "LindeX," which refers to an aspect

of the Service through which Linden Lab administers transactions among users for the purchase and sale of the

licensed right to use Currency. Notwithstanding any other language or context to the contrary, as used in this Agreement and throughout the Service in the context of Currency transfer:

(a) the term "sell" means "to transfer for consideration to another user the licensed right to use Currency in accordance

with the Terms of Service," (b) the term "buy" means "to receive for consideration from another user the licensed right to use Currency in accordance with the Terms of Service…."


Currency Control

You agree and acknowledge that Linden Lab may deny any sell order or buy order individually or with respect to general

volume or price limitations set by Linden Lab for any reason. Linden Lab may limit sellers or buyers to any group of users at

any time. Linden Lab may halt, suspend, discontinue, or reverse any Currency Exchange transaction (whether

proposed, pending or past) in cases of actual or suspected fraud, violations of other laws or regulations, or deliberate

disruptions to or interference with the Service.


WOW EULA2. Additional License Limitations. The license granted to

you in Section 1 is subject to the limitations set forth in Sections 1 and 2…. Any use of the Game in violation of

the License Limitations will be regarded as an infringement of Blizzard's copyrights in and to the Game.

You agree that you will not … exploit the Game or any of its parts, including without

limitation the Game Client, for any commercial purpose, including without limitation … (b) for

gathering in-game currency, items or resources for sale outside the Game….

•Mableson Law Group © 2010 Connie J. Mableson, PLLC 95

Guild Banks

Can contain hundreds of itemsPermissions set for who in guild can withdraw

and how muchWhat items may be deposited into GB are

determinedSome bank tabs for GM only to disburseTheft of GB by former members and by hackers


PROPERTY-VIRTUAL STYLESESSION 4


Connie J. Mableson


RANDOM QUESTIONS& DISCUSSION


Explain to Geo. Washington. . .How does a computer get its VW content?

(How does a user get access to virtual goods?


Form & Substance• Form =“how” something is done, decided,

determined, performed, or executed, e.g., how power is wielded or how an objective is achieved. It is a process or a procedure.

• Substance = “What” was accomplished, performed, executed, determined or decided.

• “Governance” is both form & substance.


LEGALLY RECOGNIZEDTYPES OF PROPERTY

ON EARTH


What is “Property”?

Anything that is or can be owned by a person or entity

Forms: Intangible & Tangible


Mid-17th CenturyStuarts, Louis XIII & XIV


John Locke

• Argues that it is not the land that is valuable itself, but the labor applied to it.

• Every one, as he is bound to preserve himself, and not to quit his station wilfully, so by the like reason, when his own preservation comes not in competition, ought he, as much as he can, to preserve the rest of mankind, and may not, unless it be to do justice on an offender, take away, or impair the life, or what tends to the preservation of the life, the liberty, health, limb, or goods of another.


How do we get the rightto own property?

• Constitution - 4th & 14th Amendment• Common Law (CUSTOM & USAGE)

• Case Law• Statutory Law


Real Estate/Real PropertyPersonal Property (chattel)

Intellectual Property


Real Estate (Earth)• Land (includes the natural features like trees,

rivers, minerals)(all land is unique)• Buildings• Improvements (infrastructure and buildings,

well)• Fixtures• Appurtenant• NOT MOVEABLE


Real Property• Same as Real Estate• AND includes interests which are not physical

- Right to occupy for a period of time (life estate or tenancy)- Right to future ownership (remainder)- Easement- Right of Reversion- Condominium


Personal Property (chattel)

• Property of a person or entity (moves with the person)

• Traditionally is Physically Moveable• Physical goods• Includes Animals• Tangible and intangible


Intellectual Property• Creations of the mind• Industrial

-Patents (inventions)-Trademarks

• Copyright • Trade Secrets (Uniform Trade Secrets-state by state)• All other Intangibles crammed into this category

(URLs, email accounts)


Patents• Right granted by USA to anyone who invents or

discovers any new and useful process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof.

• Utility patents and Design Patents• Business Method Patent• The Patent is an intangible right (to be the exclusive

owner) of title & protection• Underlying invention, process, or design is usually

tangible personal property.


Trademark• Indicator of source used to distinguish goods or services from

those of others• Trademarks serve to identify a particular business as the

exclusive source of goods or services • Includes any brand, label, name, signature, word, letter,

numerical, shape of goods, packaging, smell, sound, movement or any combination thereof which is capable of distinguishing goods and services of one business from those of others. It must be capable of graphical representation and must be applied to goods or services for which it is registered

• Grant of a trademark gives owner the exclusive right to use the mark in connection with the good of service


Copyright• Copyright is the set of exclusive rights granted to the

author or creator of an original work, including the right to copy, distribute and adapt the work

• Protects original expression- normally artistic• Fixed in a tangible medium capable of being

perceived by a human• The item is separate from the copyright rights

(painting itself separate form the rights to copy, distribute, perform, etc.)


Trade Secret• Idea• Anything used in business that is confidential

or key to the success of a business• Recipe• Marketing • Otherwise not protected by Patent or copyright

law• Protection is in contract law-not IP law


Rights of OwnershipTraditional principles of property rights include:• Control of the use of the property• the right to any benefit from the property• a right to transfer or sell the property• Peaceable possession, access and enjoyment• a right to exclude others from the property• Right to license/leaseTraditional property rights do not include:• uses that unreasonably interfere with the property rights of another

private party (the right of quiet enjoyment)(unreasonable restraint on alienation)

• uses that unreasonably interfere with public health, safety, peace or convenience


Real Property-By force (old days)-Defect in Title-Adverse Possession-Condemnation-Encroachment-Failure to pay taxes-By leasehold

Personal Property-By theft (conversion)-Trespass to Chattels-Defect in Title-Loss (destruction)-Lose it-Failure to pay taxes-By license


PropertyHow to lose ownership or use of it

Title

• What right does the current owner have to the Property?

• And the previous owners?• Title Report and Insurance• Nazi looted art


TYPES OF PROPERTY IN VIRTUAL WORLDS


What the heck are Virtual Goods?

In the context of Earth?

IN THE CONTEXT OF A VIRTUAL WORLD?



Should emerging “property” rights

be protected? Why?

(Is it really “property”?)


Should computer code that is designed to act like real

world propertybe regulated and protected like real world property?

Virtual Land & Virtual Goods

What type of Property is Virtual Land?

What type of Property is a Virtual Good?



Invasion of the virtual property interest

vs Invasion of the physical

chattel

Intel v. Hamidi, 71 P.3d 296 (2003)• Intel employee sent 200,000 emails to Intel employees.

Circumvented filters.• Intel sued on grounds of trespass to chattels.• Intel won and appealed. COA said Intel wins because it

owned the servers. (control of cyberspace by hardware ownership)

• Cali Supreme Court overturned injunction. Unpermitted access to Intel’s servers did not cause harm as it was not spam and therefore no trespass to chattels. Measured harm by number of times emails were sent not by the number of emails total.


BRAGG V LINDEN


Title to property

• Issue: Whether Linden Lab lawfully confiscated his virtual property?

• Depends on WHAT kind of title Bragg obtained? (substance)

• Depends on HOW he obtained Title (form)


Case Discussion



“…Why should we permit consensual agreements that prevent formation of

property rights in the first instance any more than we tolerate other consensual

restraints on alienation? The function of property law is in large part to resist

contractual limitations on property use. [unreasonable restraints]”

Joshua Fairfield

One view…• In general, we continue to govern virtual property

through the law of intellectual property and then as to the users, through license agreements (EULA’s).

• Even where virtual property is recognized as different due to the context, no clear definition has been offered.

• So, holders of IP rights (Linden Labs) have been systemically eliminating emerging virtual property rights by use of License Agreements.


NEW LEGAL REGIME


What happens in Vegas, stays in Vegas™



• Cultural and language boundaries are porous• Economic boundaries are porous• People are paying for virtual goods-nothing except a

perceived value of the brand• VWs mean a great deal to a large number of people• VWs are the largest creative collaboration of

humankind in the history of the real world.• They will become an increasingly important social

system in the future• Experiment in social sciences, macrocultures,

collaboration, and human behavior• Emerging area of how online communities are and will

be governed

Magic Circle-impenetrable


Interration as a Business Model


YES-WoW

Pure Play Space

No RMT

No virtual property

No property rights

Remove property or game

Insulated from RL

NO-SL

Mixed Use Space (play, Biz, edu)

RMTVirtual PropertyProperty rights of some sortRecourse for property removal,

trespass, conversionSubject to RL laws


Magic-Circle & Interration(formally construed rules or business model)

Internet based rights• In October 2009, Finland made broadband a

legal right. Starting in July, telecommunication companies in the northern European nation will be required to provide all 5.2 million citizens with Internet connection that runs at speeds of at least 1 megabit per second. 100mbps by 2015

• In June 2009, France also said the same thing by judicial decision as a human right.


FOREIGN TREATMENT


Korea, China, Taiwan

• Indirectly recognized some sort of property right that is capable of being misappropriated

• Criminal actions & compensation-treat virtual property as personal property

• Have not defined WHAT virtual property IS• More about the right to possess it without

speaking in terms of a license


Emerging Korean Law• “Act of Promotion of Game Business” (Korea) forbids

commercial trading of virtual items, yet recognizes the private fun of individual trades if not done commercially.

• So, cannot be bought or sold commercially but can be exchanged between non-merchant individuals for in-world trade or currency.

• The Supreme Court made a landmark ruling in Jan 2010, allowing "cyber money," or fictional money used in online games, to be exchanged for hard cash.

• Justice Min Il-young said that trading game money for cash should be punished only in cases in which it is obtained by online gambling games such as poker or other card games.


SUMMARY


The law of virtual property is inchoate

inchoate adj. or adv. referring to something which has begun but has not been completed, either an activity or some object which is incomplete. It may define a potential crime like a conspiracy which has been started but not perfected or finished, (buying the explosives, but not yet blowing up the bank safe), a right contingent on an event (receiving property if one outlives the grantor of the property), or a decision or idea which has been only partially considered, such as a contract which has not been formalized.


You may have noticed that I'm not all there myself.

-Cheshire Cat, Alice in Wonderland


IDENTITY, PRIVACY & DEFAMATIONSESSION 5


Connie J. Mableson


• Identity• Right of Privacy• Right of Publicity• Defamation• Trademark & Trade Names


IDENTITY


Caterpillar: Who... are... you?

Alice: Why, I hardly know, sir. I've changed so much since this morning, you see...

Caterpillar: No, I do not see, explain yourself.

Alice: I'm afraid I can't explain myself, you see, because I'm not myself, you know.


http://www.imdb.com/name/nm0370821/�




Legalistic approach to Identity

HOW TO PROVE YOU ARE WHO YOU SAY YOU ARE

(authentication)


How to Authenticate-Real World Traditional WaysIdentification (Valid ID)FingerprintsID BadgeCard KeyNotaryPictureTestimony


Security Authentication Rules-Levels (more levels=better authentication)

• Something you Know (password, security question)

• Something you Have (device)

• Something you Are (fingerprints, palm, iris)


WHY DOES IT MATTER IN CONTEXT OF

VIRTUAL WORLDS?(WOW AUTHENTICATOR)


RIGHT OF PRIVACY


HANDOUT


Restatement Right of Privacy

In 1960, Dean Prosser concluded that four separate torts had developed under the right of privacy rubric: (1) intrusion on the plaintiff's seclusion or private affairs; (2) public disclosure of embarrassing private facts; (3) publicity placing the plaintiff in a false light in the public eye; and (4) appropriation of the plaintiff's name or likeness for the defendant's advantage. Prosser, Privacy, 48 CALIF.L.REV. 383 (1960). In 1977, the Restatement adopted Prosser's classification. See Restatement 652A-I (1977).


Arizona Law

• For example, the plaintiff in a false light case must prove that the defendant published with knowledge of the falsity or reckless disregard for the truth. See Restatement 652E.

• However, to qualify as a false light invasion of privacy, the publication must involve "a major misrepresentation of [the plaintiff's] character, history, activities or beliefs," not merely minor or unimportant inaccuracies. Restatement 652E comment c.


RIGHT OF PUBLICITY


RestatementThe American Law Institute's final draft of the Restatement (Third) of the Law of Unfair Competition establishes the right of publicity as an accepted property right. Some First Amendment concerns are addressed within the Restatement through exempting news reporting, entertainment, fictional or non-fictional works and commentary from limits on using persons' identities. The commercial aspects of publicity are accepted and even descendible as long as the person has tried to exploit their identity in their lifetime.


HANDOUT


Defense-First Amendment

Courts have consistently held that the common law right of publicity must be balanced against “the public interest in dissemination of news and information consistent with the democratic processes under the constitutional guarantees of freedom of speech and the press.” The key issue is the purpose and context of the use.


California Defense

The statutory right is subject to a similar balancing test. The California publicity rights statute specifically exempts the use of a name, likeness etc. in connection with a “news, public affairs, or sports broadcast.” Cal Civ. Code sec. 3344(d). This exemption has been applied to web-based communications.


Fleeting & Incidental Uses“Fleeting and incidental” uses of a person’s name or likeness are not actionable under New York’s statutory publicity rights law. See Marks v. Elephant Walk, 156 A.D.2d 18, 19-20 (N.Y.A.D.1990). “Whether a particular use is incidental is determined through an assessment of the ‘relationship of the reference to a particular individual to the main purpose and subject of the [work at issue].’” Delan v. CBS, Inc., 91 A.D.2d 255, 260 (N.Y.A.D.,1983). Thus, for example, the listing of a plaintiff’s name as a contact person on a dance company’s website was found nonactionable. Leary v. Punzi, 179 Misc.2d 1025 (1999). “[T]he plaintiff’s name was not used in a manner directly related to the product of service . . . [A]ny potential rewards for using the plaintiff’s name were too remote and speculative to sustain her claim.” Id. at 1027.


DEFAMATION


Definition

By definition, defamation is any statement that injures a third party’s reputation, regardless of whether the statement was written or oral. Further, defamation causes someone to be ridiculed, embarrassed, lose employment and be lowered in the opinion of the community. Libel and slander are synonymous with defamation


Elements of DefamationIn order to find that the plaintiff should be granted damages for defamation, the plaintiff must provide credible evidence that the statement was false and that plaintiff was aware of the fallacy.

• That the defendant issued defamatory statements • That the statements were non-privileged • That the statements were false • That the statements referred to the plaintiff • That the defendant was, at least, negligent when the statements

were made • That the plaintiff suffered some injury as a result of the

statement


Arizona Statute• 20-445. Defamation• No person shall make, publish, disseminate or circulate, directly or

indirectly, or aid, abet or encourage the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article, sales material or literature which is false or maliciously critical of or derogatory to the financial condition of an insurer, and which is calculated to injure any person engaged in the business of insurance, or any domestic corporation or group being formed pursuant to this code for the purpose of becoming an insurer. This provision shall not be deemed to restrict the right, lawfully exercised, of newspapers, magazines, radio and television stations, and similar public media for news dissemination, objectively to publish and disseminate news.


Actual Malice-Public Figures• In 1964, however, the court issued an opinion in New York

Times Co. v. Sullivan, dramatically changing the nature of libel law in the United States. In that case, the court determined that public officials could win a suit for libel only if they could demonstrate "actual malice" on the part of reporters or publishers. In that case, "actual malice" was defined as "knowledge that the information was false" or that it was published "with reckless disregard of whether it was false or not." This decision was later extended to cover "public figures", although the standard is still considerably lower in the case of private individuals.


http://en.wikipedia.org/wiki/New_York_Times_Co._v._Sullivan�

http://en.wikipedia.org/wiki/New_York_Times_Co._v._Sullivan�

http://en.wikipedia.org/wiki/Actual_malice�

http://en.wikipedia.org/wiki/Information�

VIRTUAL WORLD ISSUES


WOW TOS17A. WHEN RUNNING, THE GAME MAY MONITOR YOUR COMPUTER'S

RANDOM ACCESS MEMORY (RAM) AND/OR CPU PROCESSES FOR UNAUTHORIZED THIRD PARTY PROGRAMS RUNNING CONCURRENTLY WITH WORLD OF WARCRAFT. AN "UNAUTHORIZED THIRD PARTY PROGRAM" AS USED HEREIN SHALL BE DEFINED AS ANY THIRD PARTY SOFTWARE THAT, WHEN USED SIMULTANEOUSLY OR IN CONNECTION WITH THE GAME, WOULD CONSTITUTE A VIOLATION OF SECTIONS 1, 2 OR 9. IN THE EVENT THAT THE GAME DETECTS AN UNAUTHORIZED THIRD PARTY PROGRAM, BLIZZARD MAY (a) COMMUNICATE INFORMATION BACK TO BLIZZARD, INCLUDING WITHOUT LIMITATION THE ACCOUNT NAME, DETAILS ABOUT THE UNAUTHORIZED THIRD PARTY PROGRAM DETECTED, AND THE TIME AND DATE THE UNAUTHORIZED THIRD PARTY PROGRAM WAS DETECTED; AND/OR (b) EXERCISE ANY OR ALL OF ITS RIGHTS UNDER THIS AGREEMENT OR THE EULA, WITH OR WITHOUT PRIOR NOTICE TO THE USER.


WOW TOSB. WHEN THE GAME IS RUNNING, BLIZZARD

MAY OBTAIN CERTAIN IDENTIFICATION INFORMATION ABOUT YOUR COMPUTER AND ITS OPERATING SYSTEM, INCLUDING WITHOUT LIMITATION YOUR HARD DRIVES, CENTRAL PROCESSING UNIT, IP ADDRESS(ES) AND OPERATING SYSTEM(S), FOR PURPOSES OF IMPROVING THE GAME AND/OR THE SERVICE, AND TO POLICE AND ENFORCE THE PROVISIONS OF THIS AGREEMENT AND THE EULA.


WOW TOSD. BLIZZARD MAY MONITOR, RECORD,

REVIEW, MODIFY AND/OR DISCLOSE YOUR CHAT SESSIONS, WHETHER VOICE OR TEXT, WITHOUT NOTICE TO YOU, AND YOU HEREBY CONSENT TO SUCH MONITORING, RECORDING, REVIEW, MODIFICATION AND/OR DISCLOSURE. Additionally, you acknowledge that Blizzard is under no obligation to monitor Chat, and you engage in Chat at your own risk.


WOW-Warden• The things Warden currently looks for in-process includes but

is not limited to:• Exploitative model edits• Known cheat modules (DLLs)• Known modifications to game functions• Known cheating addons• Speedhacks• Known API hooks from cheats• The things Warden currently looks for out-of-process includes

but is not limited to:• Known cheating drivers (rootkits)


SL• 6.2 Linden Lab may observe and record your interaction

within the Service, and may share aggregated and other general information (not including your personal information) with third parties.

• You acknowledge and agree that Linden Lab, in its sole discretion, may track, record, observe or follow any and all of your interactions within the Service. Linden Lab may share general, demographic, or aggregated information with third parties about our user base and Service usage, but that information will not include or be linked to any personal information without your consent.


SL-snooping

• Camera Use-built in tools• Third parties sell listening devices and viewers


TRADEMARKS & BRANDING IN VIRTUAL WORLDS

SESSION 1


Connie J. Mableson


WHAT IS A TRADEMARK?


Goods & Services

Goods = Hard goods or things

Services = Performed by a human being

- Act performed for another-assistance- Cannot be stored or transported


Trademarks - General

• words, names, symbols, sounds, or colors that distinguish goods and services from those manufactured or sold by others and to indicate the source of the goods.

• Trademarks can be renewed forever as long as they are being used in commerce.


What is Use?

• ON Goods (packaging, containers label, tag)• In connection with Services (advertising, web

sites, flyers, etc)• Commerce=ordinary course of sale or trade• Interstate Commerce=more than one state


PROTECTION OF MARK


Protection of Mark

• Common Law TM & SM designation• State Law TM & SM designation

• Federal Law ® designation


Common Law Trademark

• Use in commerce in a geographic area• First use in a geographic area=superior

use(r)• Proof of use in a geographic territory may

be diffcult


State Law

• States have a state based register of trademarks.

• http://www.azsos.gov/business_services/tnt/v• Gives notice of the right claimed in the mark

for use in the State• Specific goods and services-classifications


http://www.azsos.gov/business_services/tnt/v�

Federal Law-USPTO

• Must be used in interstate commerce-between 2 states

• Gives priority as to all USA• Shifts burden of proof to the person claiming

infringement • Filing of application with USPTO• www.uspto.gov• Specific classes of goods and servicesMableson Law Group © 2010 Connie J. Mableson, PLLC 194

http://www.uspto.gov/�

Enforcement

• Trademark Owner must police infringing uses otherwise may lose the exclusive rights by way of abandonment

• Generic usage = no trademark protection (Kleenex, Xerox)


Infringement

The test is

“Likelihood of Confusion”


Likelihood of Confusion-General

FACTORS APPLICABLE TO ALL CIRCUITS

-intent of alleged infringer-actual confusion-market factors


Ninth Circuit Factors

AMF v Sleekcraft Boats factors-Strength of Mark-distinctive (arbitrary, fanciful,

suggestive, descriptive)-Proximity of Goods (same class of consumers)-Similarity of Marks-Evidence of Actual Confusion-Marketing Channels Used


Sleekcraft factors…

-Type of Goods & Degree of Care Likely to be exercised in purchasing process (more expensive=more sophisticated)

-Defendant’s Intent in selecting the Mark-Likelihood of Expansion of the Product Lines

(into different markets including infringing market)


Dilution & Tarnishment

• Difficult causes of action to maintain – proof problems (actual harm)

• For famous marks (highly distinctive)• Dilution by blurring (impairs the

disctintiveness)• Dilution by tarnishment – by association that

harms the reputation of the famous mark


Defenses-9th & 3rd Circuit Fair Use (nominative fair use-New

Kids)-uses the mark owner‘s product to legitimately sell its own product

-general fair use-1st Amendment Free Speech (commercial speech)-comparative advertising-parody, criticism, commentary-news reporting-non-commercial use-abandonment/generic


SL-Trademark2.3 You need to use an account name in Second Life which is not

misleading, offensive or infringing. You must select and keep secure your account password.

You must choose an account name to identify yourself to Linden Lab staff (your "Account Name"), which will also serve as the name for the graphical representation of your body in the Service (such representation, an "Avatar"). You may not select as your Account Name the name of another person to the extent that could cause deception or confusion; a name which violates any trademark right, copyright, or other proprietary right; a name which may mislead other users to believe you to be an employee of Linden Lab; or a name which Linden Lab deems in its discretion to be vulgar or otherwise offensive. Linden Lab reserves the right to delete or change any Account Name for any reason or no reason. You are fully responsible for all activities conducted through your Account or under your Account Name.


WOW-TOU• (iv) That belongs to a popular culture figure, celebrity, or

media personality;

(v) That is, contains, or is substantially similar to a trademark or service mark, whether registered or not;

(vi) Belonging to any religious figure or deity;

(vii) Taken from Blizzard's Warcraft products, including character names from the Warcraft series of novels;


WOW-TOU• (viii) Related to drugs, sex, alcohol, or criminal activity;

(ix) Comprised of partial or complete sentence (e.g., "Inyourface", "Welovebeef", etc);

(x) Comprised of gibberish (e.g., "Asdfasdf", "Jjxccm", "Hvlldrm");

(xi) Referring to pop culture icons or personas (e.g. " "Britneyspears", "Austinpowers", "Batman")

(xii) That utilizes "Leet" or "Dudespeak" (e.g., "Roflcopter", "xxnewbxx", "Roxxoryou")

(xiii) That incorporates titles. For purposes of this subsection, "titles" shall include without limitation 'rank' titles (e.g. , "CorporalTed," or "GeneralVlad"), monarchistic or fantasy titles (e.g., "KingMike", "LordSanchez"), and religious titles (e.g., "ThePope," or "Reverend Al"). You may not use a misspelling or an alternative spelling to circumvent the name restrictions listed above, nor can you have a "first" and "last" name that, when combined, violate the above name restrictions.


Examples

• Sourmash, Saralee, Lasix, Kutter• Drug reference• Works on a reporting system• SL-Last names


AIMEE WEBER-FIRST AVATAR TO GET FEDERAL TM REGISTRATION


Aimee Weber


Future Avatar Development(who gets sued-commercial harm?)


CASE STUDY-KELLER


Relationship of Parties


Signs Document

NCAA BYLAWS-12.5 prohibits commercial licensing of athlete’s name, picture or likeness

Exclusive LicenseAgreement

LicenseAgreement

Complaint

• Identification of Parties and relationships• Facts• Claims:

- Indiana Right of Publicity (NCAA)-California Right of Publicity (EA)

First AmendmentPublic InterestPublic affairs (news reporting)

-Breach of Contract (NCAA)Mableson Law Group © 2010 Connie J. Mableson, PLLC 211



Signs Document



LicenseAgreement

Right to Publicity

Right to PublicityBreach of K

Discussion


Ruling - Motion to Dismiss

• Indiana Right of Publicity-interpreted Indiana Statute narrowly to refuse to apply liability to those who enable a violation

• California Right of Publicity-First Amendment defense-only if it does not derive primarily from the celebrity’s fame-and must be transformative-cannot be a trivial variation

• “…this Court’s focus must be on the depiction of Sam in NCAA football-not on the game’s other elements”


Ruling …• Public Interest Defense-freedom of press and

others to know. “The game does not merely report or publish Sam’s statistics and abilities. On the contrary, EA enables the consumer to assume the identity of various student athletes and compete in simulate college football matches. EA is not entitled to the statutory defense because its use of Sam’s image and likeness extends beyond reporting information about him.”


Ruling, ctd.• Breach of Contract Claim. “Sam has not

identified a contract that he is seeking to enforce. Instead, he states that by signing the document, the athletes agree that ‘they have “read and understand” the NCAA’s rules’ and that ‘to the best of their knowledge they have not violated the amateurism rules.’ These phrases, on their own, do not indicate that the document is a contract.”




Signs Document



LicenseAgreement

Right to Publicity

Right to PublicityBreach of K

CASE STUDY-PLAY PEN


Issue

The heart of ESS’s complaint is that Rockstar has used Play Pen’s distinctive logo and trade dress without its authorization and has created a likelihood of confusion among consumers as to whether ESS has endorsed, or is associated with, the video depiction.


• The relevant question, therefore, is whether the Game would confuse its players into thinking that the Play Pen is somehow behind the Pig Pen or that it sponsors Rockstar’s product. In answering that question, we keep in mind our observation in MCA Records that the mere use of a trademark alone cannot suffice to make such use explicitly misleading.


• Nothing indicates that the buying public would reasonably have believed that ESS produced the video game or, for that matter, that Rockstar operated a strip club. A player can enter the virtual strip club in Los Santos, but ESS has provided no evidence that the setting is anything but generic. It also seems far-fetched that someone playing San Andreas would think ESS had provided whatever expertise, support, or unique strip-club knowledge it possesses to the production of the game. After all, the Game does not revolve around running or patronizing a strip club. Whatever one can do at the Pig Pen seems quite incidental to the overall story of the Game. A reasonable consumer would not think a company that owns one strip club in East Los Angeles, which is not well known to the public at large, also produces a technologically sophisticated video game like San Andreas.


• In this case, however, Rockstar’s use of “Pig Pen” is not “identical to the plaintiff’s [Play Pen] mark.” Furthermore, the district court observed that Rockstar’s Lead Map Artist “testified the goal in designing the Pig Pen was . . . not to comment on Play Pen per se.” Since Rockstar did not use the trademarked logo to describe ESS’s strip club, the district court correctly held that the nominative fair use defense does not apply in this case.


• However, ESS argues both that the incorporation of the Pig Pen into the Game has no artistic relevance and that it is explicitly misleading. It rests its argument on two observations: (1) the Game is not “about” ESS’s Play Pen club the way that “Barbie Girl” was “about” the Barbie doll in MCA Records; and (2) also unlike the Barbie case, where the trademark and trade dress at issue was a cultural icon (Barbie), the Play Pen is not a cultural icon.


• And that neighborhood, with all that characterizes it, is relevant to Rockstar’s artistic goal, which is to develop a cartoon-style parody of East Los Angeles. Possibly the only way, and certainly a reasonable way, to do that is to recreate a critical mass of the businesses and buildings that constitute it. In this context, we conclude that to include a strip club that is similar in look and feel to the Play Pen does indeed have at least “some artistic relevance.”


• In commerce?• What is real place goods or services?• What is the virtual place goods or services?• Tarnishment? Actual Damages?


CASE STUDIES-TASER & FRANK LLOYD WRIGHT


Taser Complaint

• Complaint is long• Appears that the Attorney did not know the

Virtual World• Taser did not seek to immerse itself into the

world or address a business solution• Other VW’s (MMO) use a TASERDART, and

an ARGENT (a neutralizing taser)


• In commerce?• What is real TASER goods?• What is the virtual place goods?• PPK? Other firearms?• Tarnishment? Actual Damages?


Frank Lloyd Wright Foundation

• Business solution• Solved in-world • No litigation


SUMMARY


Broad conclusions• Keller vs NCAA (right of publicity in a game or

virtual environment – use must be significant, non-transformative, and factually specific)

• Play-Pen (trademark infringement must be directly relevant, substantially identical and significant-reasonable person)

• Taser case (no business solution and lack of other enforcement)

• FLW (business solution effective)• Enabling cause of action (facilitation for copyright)


CONTRACTSSESSION 7


Connie J. Mableson


COPYRIGHT & VIRTUAL WORLDSSESSION 8


Connie J. Mableson


WHAT IS COPYRIGHT?


IP Review

• Patent (federal)• Trademark (federal)• Copyright (federal)• Trade Secrets (state by state law)


Copyright Basics• Constitutional Protection- Article I, Section 8, Clause

8 of the U.S. Constitution empowers Congress "To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." ...

• Federal Law 17 U.S.C. 101 et seq.


Tangible Form of Expression• Protects “original works of authorship”• Protect ORIGINAL EXPRESSION of an author in a “work”• Copyright protects “original works of authorship” that are fixed in a

tangible form of expression. The fixation need not be directly perceptible so long as it may be communicated with the aid of a machine or device.

Copyrightable works include the following categories:1. literary works2. musical works, including any accompanying words3. dramatic works, including any accompanying music4. pantomimes and choreographic works5. pictorial, graphic, and sculptural works6. motion pictures and other audiovisual works7. sound recordings8. architectural works


Original Expression What is NOT original expression

-Works that have not been fixed in a tangible form of expression

-Titles, names, short phrases, and slogans; familiar symbols or designs; mere listings of ingredients or contents

-Ideas, procedures, methods, systems, processes, concepts, principles, discoveries, or devices, as distinguished from a description, explanation, or illustration

-Works consisting entirely of information that is common property and containing no original authorship (for example: standard calendars, height and weight charts, tape measures and rulers)


Exclusive RightsSection 106 of the 1976 Copyright Act generally gives the owner of copyright the exclusive right to do and to authorize others to do the following:

- To reproduce the work in copies or phonorecords;- To prepare derivative works based upon the work;- To distribute copies or phonorecords of the work to the public by

sale or other transfer of ownership, or by rental, lease, or lending;- To perform the work publicly, in the case of literary, musical,

dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works;

- To display the work publicly, in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including motion picture or other audiovisualworks; and

- In the case of sound recordings, to perform the work publicly by means of a digital audio transmission.


AuthorshipThe copyright in the work of authorship immediately

becomes the property of the author who createdthe work. Only the author or those deriving their rights through the author can rightfully claim copyright.

The authors of a joint work are co-owners of the copyright in the work, unless there is an agreement to the contrary.


Works Made for HireIn the case of works made for hire, the employer and not the employee is considered to

be the author. Section 101 of the copyright law defines a “work made for hire” as:1. a work prepared by an employee within the scope of his or her employment; or2 . a work specially ordered or commissioned for use as:

-a contribution to a collective work-a part of a motion picture or other audiovisual work-a translation-a supplementary work-a compilation-an instructional text-a test-answer material for a test-an atlas-if the parties expressly agree in a written instrument signed by them that the

work shall be considered a work made for hire.


Term of Copyright

A work that was created (fixed in tangible form for the first time) on or after January 1, 1978, is automatically protected from the moment of its creation and is ordinarily given a term enduring for the author’s life plus an additional 70 years after the author’s death.

In the case of “a joint work prepared by two or more authors who did not work for hire,” the term lasts for 70 years after the last surviving author’s death.

For works made for hire, and for anonymous and pseudonymous works (unless the author’s identity is revealed in Copyright Office records), the duration of copyright will be 95 years from publication or 120 years from creation, whichever is shorter.


Infringement• Direct Infringement• Contributory (knowledge of another’s

infringement and either material contribution to the infringement or induce infringement)

• Vicarious (the right and ability to supervise the infringing content and a direct financial interest in the infringing activity)


Copyright & Form of Medium

Mere ownership of a book, manuscript, painting, or any other copy or phonorecord does not give the possessor the copyright. The law provides that transfer of ownership of any material object that embodies a protected work does not of itself convey any rights in the copyright.


DMCA


DMCA-Section 512Service Provider hosts or stores content from third parties (UGC) does

not have liability for copyright infringement if it:1. Posts a DMCA notice on its web site and adheres to the DMCA

notice and take down/counter-notice provisions2. Does not have actual knowledge of infringing material on its

system3. Is not aware of facts or circumstances from which infringing

activity is apparent4. Upon obtaining such knowledge or awareness, disables the content

or removes it5. Does not receive a financial benefit directly attributable to the

infringing activity if it has the right and ability to control such activity

6. Responds expeditiously if it receives a DMCA notice


SL DMCA Notice

http://secondlife.com/corporate/dmca.php


http://secondlife.com/corporate/dmca.php�

COPYRIGHT INSECOND LIFE


Building in SL• Building Blocks = prims• Textures• Scripts• Notecards• Sculptie (prim shape determined by 3D model

texture rather than using math geometry)• Flexie (flexie prims)-move• 3D rendering tools



Permissions“perms”

Eros v Simon

• Issues• Claims• Resolution (12/07 by settlement)


Copybot• SL agreed to allow residents to reverse engineer an open source version of

the SL client. This was done to encourage limitless versions of the client residing on servers worldwide, creation of NPSs and inventory backup.

• As a part of the reverse engineering process automated avatars could be logged in thus creating further possibilities for game development.

• The program logs in, reads the appearance of the closest avatar and sets its appearance the same as closest avatar and can recreate identical avatar bots many times over.

• Someone else took this open source code and made it into COPYBOT. It sold thousands of versions. It also had spyware and viruses in it.

• SL solution was to tell residents to file a DMCA notice if their items were being copied by COPYBOT.

• Many stores and clubs shut down in protest (like the tea party). Residents also protested at the shops or next to the avatars selling COPYBOT

• Couple days later, LL made COPYBOT a violation of TOS• Inventory Backup (CJM read from flyer) http://slcopybot.weebly.com/


http://slcopybot.weebly.com/�

Case Study II• Eros v Linden Research (26(f) report)• Facts• Issues• Discussion


Third Party Viewers

• http://wiki.secondlife.com/wiki/Alternate_viewers#Third-party_Viewers

• http://secondlife.com/corporate/tpv.php• SL Viewer Policy 2/23/10• Anti-Copybot Programs-https://xstreetsl.com/modules.php?name=Market

place&file=item&ItemID=2138424


http://secondlife.com/corporate/tpv.php�



https://xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=2138424�

https://xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=2138424�

COPYRIGHT IN WOW


MDY V BLIZZARD


Background-copyright law• Section 109: First Sale doctrine. “Owner” of a

copy of the work may sell, lease, distribute or otherwise dispose of a work without the permission of the copyright holder.

• Section 117: RAM exception to copying. Provided that such new copy or adaptation is created as an essential step in the utilizationo f a computer program in conjunction with a machine and that it is used in no other manner


Parties


DirectCopyright Infringement

ContributoryCopyright Infringement

EULATOS

Bot

MDY Case-Trial Court (District Court)

• What is Glider?• Who is Michael Donnelley?• What is MDY’s legal argument?• What is Blizz’s legal argument?• Direct Infringement by people buying Glider

and using it in the game world• MDY is a contributor infringer


Legal Arguments• MDY: Software License grants right to copy into RAM.

The EULA and TOS are separate contracts and not a limitation on the scope of the license. Copyright infringement only as to one of the exclusive rights being violated. The act that takes one outside the scope of the license and the act that constitutes infringement must be one and the same. Verner v. Autodesk, Inc. (W.D. Wash. 2008)

• Blizz: Software license is limited in scope-only so long as EULA and TOS are followed can the RAM copy be made. Wall Data.

• Limitation on Scope of License vs Contract dispute


District Court Ruling• EULA & TOS in entirety, section 4 of the TOU

is a limit on scope of license and Section 5 sets forth the rules of the game as independent contract terms.

• Wall Data case. If copyright holder makes it clear that it is granting a license to the software and imposes significant restrictions on the use or transfer of the copy=license and not a sale and not an owner per Section 117.


WOW EULA

• WORLD OF WARCRAFTEND USER LICENSE AGREEMENT

IMPORTANT! PLEASE READ CAREFULLY.•

THIS SOFTWARE IS LICENSED, NOT SOLD. BY INSTALLING, COPYING OR OTHERWISE USING THE GAME (DEFINED BELOW), YOU AGREE TO BE BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT, YOU ARE NOT PERMITTED TO INSTALL, COPY OR USE THE GAME. IF YOU REJECT THE TERMS OF THIS AGREEMENT WITHIN THIRTY (30) DAYS AFTER YOUR PURCHASE, YOU MAY CALL (800)757-7707 TO REQUEST A FULL REFUND OF THE PURCHASE PRICE.


EULA-copyright infringement• Additional License Limitations.• The license granted to you in Section 1 is subject to the

limitations set forth in Sections 1 and 2 (collectively, the "License Limitations"). Any use of the Game in violation of the License Limitations will be regarded as an infringement of Blizzard's copyrights in and to the Game. You agree that you will not, under any circumstances:

B. use cheats, automation software (bots), hacks, mods or any other unauthorized third-party software designed to modify the World of Warcraft experience;


EULA• Service and Terms of Use.• You must accept the Terms of Use in order to access the

Service and play the Game. The Terms of Use agreement governs all aspects of game play. You may view the Terms of Use by visiting the following website: http://www.worldofwarcraft.com/legal/termsofuse.shtml. If you do not agree with the Terms of Use, then (a) you may not register for an Account to play the Game, and (b) you may call (800)757-7707 within thirty (30) days after the original purchase to arrange to return the Game and to request a full refund of the purchase price. Once you accept the License Agreement and the Terms of Use, you will no longer be eligible for a refund.


TOU• WORLD OF WARCRAFT®

• TERMS OF USE AGREEMENTLast Updated July 29, 2008 YOU SHOULD CAREFULLY READ THE FOLLOWING WORLD OF WARCRAFT TERMS OF USE AGREEMENT (THE "TERMS OF USE" OR "AGREEMENT"). IF YOU DO NOT AGREE WITH ALL OF THE TERMS OF THIS AGREEMENT, YOU MUST CLICK "REJECT." IF YOU REJECT THIS AGREEMENT WITHIN THIRTY (30) DAYS AFTER FIRST PURCHASING A LICENSE TO THE WORLD OF WARCRAFT SOFTWARE, YOU MAY CALL (800)757-7707 TO REQUEST A FULL REFUND OF THE PURCHASE PRICE. ONCE YOU AGREE TO THE TERMS OF USE AND THE END USER LICENSE AGREEMENT, YOU WILL NO LONGER BE ELIGIBLE FOR A REFUND.


TOU

• Additional License Limitations. • The license granted to you in Section 1 is subject to the

limitations set forth in Sections 1 and 2 (collectively, the "License Limitations"). Any use of the Service or the Game Client in violation of the License Limitations will be regarded as an infringement of Blizzard’s copyrights in and to the Game. You agree that you will not, under any circumstances: A. use cheats, automation software (bots), hacks, mods or any other unauthorized third-party software designed to modify the World of Warcraft experience;


TOU• Rules Related to Game Play. Game play is what World of

Warcraft is all about, and Blizzard strictly enforces the rules that govern game play. . . .

Nonetheless, certain acts go beyond what is "fair" and are considered serious violations of these Terms of Use. Those acts include, but are not necessarily limited to, the following:

(i) Using or exploiting errors in design, features which have not been documented, and/or "program bugs" to gain access that is otherwise not available, or to obtain a competitive advantage over other players;


Amicus Brief-9th Circuit

Legislative History


MMO Champions Online

EULA contains similar provisions as WoW but doesn’t go as far ads requiring game to be returned to “Owner”.


FUTURE OF COPYRIGHT RE: VIRTUAL WORLDS


Developing IssuesSL and UGC environments

-DMCA-Third Party Viewers-Copybots and Anti-copybot programs-Open Source Code-SL as Contributory/Vicarious Infringer

WOW-Copyright Sale vs. License


FEDERAL LAWS AFFECTING VWS

SESSION 11


Connie J. Mableson


Overview• Federal Statutes and rules• Enacted Congress and rules promulgated by

the agency with oversight• Studied by Congress or related agencies (FTC)• Children (COPPA-1998)• Gambling (UIGEA-2006)• Computer Fraud Abuse Act of 2008• Taxes (IRS Report 12/2008) • Stalking & HarassmentMableson Law Group © 2010 Connie J. Mableson, PLLC 278

GAMBLING


Definition of Gamble• 1. a. To bet on an uncertain outcome, as of

a contest.– b. To play a game of chance for stakes.

• 2. To take a risk in the hope of gaining an advantage or a benefit.

• 3. To expose to risk.• 2. An act or undertaking of uncertain

outcome; a risk.


Risk• 1. The possibility of suffering harm or loss; danger.

• 2. A factor, thing, element, or course involving uncertain danger; a hazard.

• 3. a. The danger or probability of loss to an insurer.

– b. The amount that an insurance company stands to lose.

• 4. a. The variability of returns from an investment.

– b. The chance of nonpayment of a debt.

• 5. One considered with respect to the possibility of loss: a poor risk.

• 6. To expose to a chance of loss or damage; hazard.

• 7. To incur the risk of something.

• Idiom: at risk In an endangered state, especially from lack of proper care


•Risk of Loss•Chance of Gain

•Real Money


WHY DO WE CARE?(What is the social policy?)


State and Federal Laws prohibiting Gambling

• State Laws define and prohibit “gambling” based on the type of activity

• No federal statute that outlaws gambling per se• Federal Wire Act-federal crime for a gambling business

to use a communication facility to transmit a bet or wager on a sporting event or other contest

• US Justice says covers all forms of gambling-sports and non-sports although 5th Circuit Court of Appeals has ruled only sports gambling is prohibited

• Arizona http://www.gambling-law-us.com/State-Laws/Arizona/


http://www.gambling-law-us.com/State-Laws/Arizona/�

UIGEA of 2006• Federal Law• Does not outlaw gambling-left to the states• Designed to prohibit US companies operating

offshore gambling but getting USD through bank transfers

• Prohibits internet gambling operators from accepting money related to any online gambling that violates any state or federal laws and prohibits financial institutions from processing those payments

• Supporters & historyMableson Law Group © 2010 Connie J. Mableson, PLLC 285

Second Life• April 2007 banned gambling outright• UIGEA effective date is 6/1/10 (over 4 years)• Second life did not want to take an unreasonable

risk/chance that they would be prosecuted• Internet skill games may or may not be legal• Only exempts horse racing and lotteries and fantasy

sports under certain conditions• Intended towards poker (no state legalizes poker)• Free games may or may not be illegal• Gray area


SL Policies• http://wiki.secondlife.com/wiki/Linden_Lab_

Official:Wagering_Games_FAQ

• Keep it legal You are legally responsible for your own actions in Second Life. However, due to the legally ambiguous state of virtual gambling, all Classifieds, Event listings, and land descriptions that advertise gambling will be removed without refund.


http://wiki.secondlife.com/wiki/Linden_Lab_Official:Wagering_Games_FAQ�

http://wiki.secondlife.com/wiki/Linden_Lab_Official:Wagering_Games_FAQ�

• Has Linden Labs admitted that they may be facilitating or engaging in gambling/wagering?

• Do you think this can be used against them in other causes of action such as copyright and trademark cases alleging facilitation og infringers by Linden Labs?


COPPA


Children

What is the problem/issue?

How do we monitor/prevent?


COPPA- 1998

http://www.ftc.gov/ogc/coppa1.htm


http://www.ftc.gov/ogc/coppa1.htm�

DisneyPARENTAL CONSENTUnder the Children's Online Privacy Protection Act ("COPPA"), parental

consent is required for the online collection, use and/or disclosure of personal information obtained from a child under the age of thirteen (13). When purchasing the Service, the Account Holder may be asked to provide a valid credit card. If paying by credit card, children will need to have a parent or legal guardian register as the Account Holder. By providing his or her credit card number, the Account Holder: (a) represents and warrants that he or she will be the Account Holder; (b) represents and warrants that he or she is the parent or legal guardian of any child under the age of thirteen (13) for whom he or she allows to use the Account; and (c) agrees to our collection, use and disclosure of personal information in accordance with the Privacy Policy [http://disney.go.com/corporate/legal/wdig_privacy.html] with respect to any child under the age of thirteen (13) for whom the Account Holder allows to use the Account.


SL Policy• 2.2 …You must be at least 13 years of age to participate in the Service. Users under the age of 18

are prohibited from accessing the Service other than in the area designated by Linden Lab for use by users from 13 through 17 years of age (the "Teen Area"). Users age 18 and older are prohibited from accessing the Teen Area. Any user age 18 and older who gains unauthorized access to the Teen Area is in breach of this Agreement and may face immediate termination of any or all Accounts held by such user for any area of the Service. If you reside in a jurisdiction where the age of majority is greater than 18 years old, you are prohibited from accessing the Service until you have reached such age of majority.

• By accepting this agreement in connection with an Account outside the Teen Area, you represent that you are an adult 18 years of age or older. By accepting this agreement in connection with an Account for use in the Teen Area, you represent that (i) you are at least 13 years of age and less than 18 years of age; (ii) you have read and accept this Agreement; (iii) your parent or legal guardian has consented to you having an Account for use of the Teen Area and participating in the Service, and to providing your personal information for your Account; and (iv) your parent or legal guardian has read and accepted this Agreement.

• Linden Lab cannot absolutely control whether minors gain access to the Service other than the Teen Area, and makes no representation that users outside the Teen Area are not minors. Linden Lab cannot absolutely control whether adults gain access to the Teen Area of the Service, and makes no representation that users inside the Teen Area are not adults. Adult employees, contractors and partners of Linden Lab regularly conduct their work in the Teen Area. Linden Lab cannot ensure that other users or any non-employee of Linden Lab will not provide Content or access to Content that parents or guardians may find inappropriate or that any user may find objectionable.


Teen Second Life

http://teen.secondlife.com/


http://teen.secondlife.com/�

Adult Content in SL• 1. Creation of a Red Zone Adult Island –

Zindra• 2. No Mainland adult content• 3. Filtered Search Results • 4. Payment/ Age verification to see adult

content in SL • 5. Estate Owners can Flag Adult Content • 6. Guidelines on what is “Adult” • 7. Adult reporting system• 8. Vibrant communityMableson Law Group © 2010 Connie J. Mableson, PLLC 295

FTC Report-Dec 2009• The Commission makes five recommendations to virtual world operators

to reduce the risk of youth exposure to explicit content:

• -Use more effective age-screening mechanisms to prevent children from registering in adult virtual worlds;

• -Use or enhance age-segregation techniques to make sure that people interact only with others in their age group;

• -Re-examine language filters to ensure that they detect and eliminate messages that violate rules of behavior in virtual worlds;

• -Provide more guidance to community enforcers in virtual worlds so they are better able to review and rate virtual world content, report potential underage users, and report any users who appear to be violating rules of behavior; and

• -Employ a staff of specially trained moderators who are equipped to take swift action against rule violations.


STALKING & HARASSMENT


Arizona law-stalking• 13-2923. Stalking; classification; definitions• A. A person commits stalking if the person intentionally or knowingly engages in a

course of conduct that is directed toward another person and if that conduct either:• 1. Would cause a reasonable person to fear for the person's safety or the safety of

that person's immediate family member and that person in fact fears for their safety or the safety of that person's immediate family member.

• 2. Would cause a reasonable person to fear death of that person or that person's immediate family member and that person in fact fears death of that person or that person's immediate family member.

• B. Stalking under subsection A, paragraph 1 of this section is a class 5 felony. Stalking under subsection A, paragraph 2 is a class 3 felony.

• C. For the purposes of this section:• 1. "Course of conduct" means maintaining visual or physical proximity to a specific

person or directing verbal, written or other threats, whether express or implied, to a specific person on two or more occasions over a period of time, however short, but does not include constitutionally protected activity.

• 2. "Immediate family member" means a spouse, parent, child or sibling or any other person who regularly resides in a person's household or resided in a person's household within the past six months.


Arizona law-Harassment• 13-2921. Harassment; classification; definition

• A. A person commits harassment if, with intent to harass or with knowledge that the person is harassing another person, the person:

• 1. Anonymously or otherwise contacts, communicates or causes a communication with another person by verbal, electronic, mechanical, telegraphic, telephonic or written means in a manner that harasses.

• 2. Continues to follow another person in or about a public place for no legitimate purpose after being asked to desist.

• 3. Repeatedly commits an act or acts that harass another person.

• 4. Surveils or causes another person to surveil a person for no legitimate purpose.

• 5. On more than one occasion makes a false report to a law enforcement, credit or social service agency.

• 6. Interferes with the delivery of any public or regulated utility to a person.

• C. Harassment under subsection A is a class 1 misdemeanor. Harassment under subsection B is a class 5 felony.

• E. For the purposes of this section, "harassment" means conduct that is directed at a specific person and that would cause a reasonable person to be seriously alarmed, annoyed or harassed and the conduct in fact seriously alarms, annoys or harasses the person.


Federal• The Interstate Stalking Punishment and Prevention Act of 1996 [

USC 18: 2261A ]. Made it a Federal crime to cross a State line with the intent to injure or harass another person. This law does little to help the Internet community of course as cyberstalking does not require the physical crossing of State lines. Violence against women.

• 875. Interstate communications(c) Whoever transmits in interstate or foreign commerce any

communication containing any threat to kidnap any person or any threat to injure the person of another, shall be fined under this title or imprisoned not more than five years, or both.


SL

http://secondlife.com/policy/security/harassment.php


http://secondlife.com/policy/security/harassment.php�

http://secondlife.com/policy/security/harassment.php�

COMPUTER FRAUD ABUSE ACT OF 2008


CFAA

• CFAA enacted as a part of the Patriot Act• Similar to common law action of Trespass• Allows for civil and criminal actions• Intended toward hackers• Use has been expanded to include

unintended causes of action and that use is effective for complainants


Blizzard v Game Dollarhttp://virtuallyblind.com/files/in_game_dollar_complaint.pdf

http://virtuallyblind.com/files/Peons_Injunction.pdf

Another example of a breach of the EULA/TOS giving rise to a federal cause of action?


http://virtuallyblind.com/files/in_game_dollar_complaint.pdf�

http://virtuallyblind.com/files/Peons_Injunction.pdf�

TAXATION OF VIRTUAL WORLD PROPERTY


TAXES-issues

• Federal Income Tax/State Income Tax• Federal & State Estate tax• Federal Gift tax• Sales tax (local & state) • Use tax (local & state)


Income Tax standard

• Glenshaw Glass case defines “income” as:

“any undeniable accession to wealth, which is clearly realized by the taxpayer, over

which the taxpayer has completedominion.”


Federal TaxesIncome, estate & gift

• Taxes usually based on income (money received from all sources-income tax) or property value (estate tax & gift tax)

• Current law is clear that receipt of USD from linden dollars is a taxable event

• Is receipt of Linden dollars a taxable event if NOT not converted in USD?

• What if I receive as a gift, a piece of virtual property? How to value that property?

• What if I die and my estate includes my level 80 WOW avatar or lots of virtual property? Should that be valued and included in estate tax?


OPENSIMHYPERGRID


decentralized virtual environments with

multiple virtual worlds


OPENSIM• What is OpenSim?• OpenSim is a platform for operating a virtual world, and supports

multiple independent regions connecting to a single centralized grid. This is somewhat similar to the web, where anyone can run their own web server, tied together through the internet. It can also be used to create a private grid, analogous to a private intranet.

• What is a region?• A region is what you see when you log into OpenSim. It is the

physical place (well, virtual physical space) where avatars move and interact. It is a square patch of land which may contain an island, mountains, a plain, buildings, etc., or just an ocean.

• What is the grid?• The grid is the level that organizes the regions and their positions in

the world, and handles things that need to exist across regions, such as a user's inventory. You can think of it as similar to the world map.


OpenSim, ctd.

• http://opensimulator.org/wiki/Main_Page


http://opensimulator.org/wiki/Main_Page�

OpenSim BSD License• http://opensimulator.org/wiki/BSD_License

• OpenSim is provided under the following BSD license.

• Copyright (c) Contributors, http://opensimulator.org/ See CONTRIBUTORS.TXT for a full list of copyright holders.

• Redistribution and use in source and binary forms, with or without modification, are permitted provided that the following conditions are met:

• Redistributions of source code must retain the above copyright notice, this list of conditions and the following disclaimer.

• Redistributions in binary form must reproduce the above copyright notice, this list of conditions and the following disclaimer in the documentation and/or other materials provided with the distribution.

• Neither the name of the OpenSim Project nor the names of its contributors may be used to endorse or promote products derived from this software without specific prior written permission.

• THIS SOFTWARE IS PROVIDED BY THE DEVELOPERS ``AS IS AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.


http://opensimulator.org/wiki/BSD_License�

http://opensimulator.org/�

ScienceSim• Run by INTEL

• "Our goal isn't to create interoperability standards," says Bowman. "We're trying out new ideas and architectures, see how they fit together, then provide our key learnings to the organizations that are building out the standards work.“

• http://software.intel.com/en-us/articles/sciencesim-a-virtual-environment-for-collaborative-visualization-and-experimentation/


http://software.intel.com/en-us/articles/sciencesim-a-virtual-environment-for-collaborative-visualization-and-experimentation/�

Closing Thoughts

GO TO SLIDE 28 in David’s PPT


Next Year the class will be in OpenSim


JURISDICTION


Two issues

1. How and where to sue a game god, another user, or anyone

in a virtual environment.

2. What laws govern?


Scenario• Koo is a content creator in SL. Someone

named Copycat has taken a copy of Koo’s original item and is reselling it.

• Koo = Original• Copycat = infringer• Original (Koo) vs Infringer (Copycat)• Koo is in Arizona• Copycat is Who?? Where does he/she

live?Mableson Law Group © 2010 Connie J. Mableson, PLLC 319

Lawsuit• Koo files a COMPLAINT in Arizona federal court for copyright

infringement

• Complaint is Connie J. Mableson vs. John Does and Jane Does I-X

• In the body of the complaint, Copycat named as the infringer

• Once complaint is filed, Connie obtains an administrative subpoena directed to Linden Labs to turn over account information of Copycat

• Linden labs does so and the account is in the name of Charlie Brown

• Complaint is amended by Connie to name Charlie Brown as defendant


WHERE to FILE SUIT –US party vs US party

Depends on

1. WHAT laws form the basis of a cause of action.

2. WHERE the parties live (or have principal place of business or conduct business)


Federal and/or State Laws1. WHAT laws form the basis of a cause of action.

-Federal statute (copyright) = federal court (federal Question Jurisdiction). Can add state law claims there as well (Right to publicity, breach of contract). Supplemental Jurisdiction

-State statute or state law claim can sue only in the state courts.


WHERE the parties live (or have principal place of business or conduct business)

-If all parties live in different states and controversy is over $75K, can sue in Federal Court. Diversity Jurisdiction

-If live in different states, then apply standard Jurisdiction analysis. Minimum contacts & Due process standard


International Jurisdiction• US resident vs Non-US resident• Non-US resident vs US resident• Norway vs. US• US vs Norway• No US federal or state court has basic powers to cause

or force a non-US citizen to litigate in US court if that non-US person has no contacts with US and is not in the US

• Same for foreign courts• Must sue in nation where other party resides• Cannot enforce foreign judgments in US• Foreign Treaties


Contracts

Parties to a contract (EULA/TOS) can agree to

WHAT law applies and WHERE suit can be brought.


SL TOS• 12.2 The applicable law and venue for any non-arbitrated

dispute is California.

You agree that this Agreement and the relationship between you and Linden Lab shall be governed by the laws of the State of California without regard to conflict of law principles or the United Nations Convention on the International Sale of Goods. Further, you and Linden Lab agree to submit to the exclusive jurisdiction and venue of the courts located in the City and County of San Francisco, California, except as provided in Section 12.1 regarding optional arbitration. Notwithstanding this, either party shall still be allowed to apply for injunctive or other equitable relief to protect or enforce that party's Intellectual Property Rights in any court of competent jurisdiction where the other party resides or has its principal place of business.


WOW EULA• E. Location. If you are a resident of the United States,

any arbitration will take place at any reasonable location convenient for you.

• For residents outside the United States, any arbitration shall be initiated in the County of Los Angeles, State of California, United States of America.

• Any Dispute not subject to arbitration (other than claims proceeding in any small claims court), or where no election to arbitrate has been made, shall be decided by a court of competent jurisdiction within the County of Los Angeles, State of California, United States of America, and you and Blizzard agree to submit to the personal jurisdiction of that court.


WOW ctd.

• F. Governing Law. Except as otherwise set forth herein, this License Agreement shall be governed by, and will be construed under, the Laws of the United States of America and the law of the State of Delaware, without regard to choice of law principles.


Jurisdiction for the future

• Real world laws/principles into VW• Virtual world laws/principles into RW• VW=RW• RW=VW• OpenSim, OpenGrid, Hypergrid• Other technologies MIXED REALITY


Thank You• Gary Marchant, Dennis Karjala & Sandy Askland

• Dean Berman

• John Carter McKnight

• Students

• (envelopes)


Mableson ASU Session

Law

Transcript of Mableson ASU Session