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I am pleased to announce that I have accepted a position with Pillsbury, a global law firm with San Francisco roots and a high-tech history dating all the way back to cutting-edge 1880s telegraph cases.  I’ll be helping establish and build Pillsbury’s new virtual worlds and video games practice.  It’s a great fit.  I am working with Pillsbury remotely now, and I will be joining the Silicon Valley office as an associate with the Intellectual Property practice section in early January.

It’s been an interesting journey to this point.  Early last year, I took a break from practice to focus on writing and to develop a deeper understanding of 3D internet technology and associated legal issues.  The field didn’t even have a name then, but the emergence of “virtual law” as a specialty seemed inevitable.  Besides, I’m an avid gamer, a sci-fi fan, and an unapologetic technology optimist.  The chance to merge my interest in the 3D internet, my passion for writing, and my career as an attorney was really appealing.

Since then, interest in virtual law has exploded.  Virtually Blind was getting ten or twenty hits a day when I launched the site two years ago, now it gets thousands, mostly from searches.  News sometimes has come so quickly that I’ve struggled to keep up.  Over the last two years, I’ve written almost 350 posts at Virtually Blind, as well as many articles in mainstream and industry periodicals.  I also wrote the first book on this emerging field, Virtual Law: Navigating the Legal Landscape of Virtual Worlds (ABA Publishing, 2008).

Being a full-time commentator at a time like this has been fantastic — a once in a lifetime experience — but I have really missed working with clients.  I could not be more excited about now taking a more hands-on approach to legal issues arising from the 3D internet, virtual worlds and online games.

Final Post at Virtually Blind; Launching Virtual Law

Returning to practice with a large law firm means that I’ll be somewhat less free to comment on virtual law issues than I was while self-employed.  As such, this is the final post at Virtually Blind.  The site will remain online as a research resource, but there will be no new content.  I will, however, continue writing articles on issues in virtual law; some will be available via Pillsbury’s publications directory, and others will appear in mainstream and industry publications.

I am also working on a new site, Virtual Law, which will be an online companion to my book.  Although the site will not be a blog and I will not post any commentary there, there will be virtual law discussion forums, a virtual law wiki, a frequently-updated virtual law news feed, and extensive links to other virtual law resources.  I will also provide information on my speaking schedule, writing, and other related projects.

Thank You

I cannot overstate my appreciation for Virtually Blind’s readers, commenters, and talented contributing writers.  Your regular visits over the last two years kept me posting, and your witty, insightful comments added immeasurably to the site.  I will genuinely miss interacting with all of you here.  I hope you’ll visit Virtual Law often, and that we will stay in touch.  My current contact addresses will all work indefinitely, and you can also reach me at Pillsbury.

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Benjamin Duranske, VB’s editor and author of Virtual Law, is guest hosting a special edition of Metanomics on Monday, December 8 at 12:00 PM Second Life time (Pacific).  The show will feature a number of other virtual world authors talking about their books and their current projects — just in time for the holidays!  Guests include Mark Bell (Second Life For Dummies), Eddy Shah (Second World), Julian Dibbell (My Tiny Life; Play Money), Tom Boellstroff, (Coming of Age in Second Life: An Anthropologist Explores the Virtually Human), and Wagner James Au (The Making of Second Life; Second Life: The Official Guide).  We’ll be giving away signed copies of some of the books (including Virtual Law) and it should be a lot of fun.  Hope to see many of VB’s readers there.

Metanomics is typically produced in Second Life, though has been broadcast from other virtual worlds.  You can learn about the show at metanomics.net, and can catch up on old episodes at SLCN.tv.

If you can’t log in to Second Life at noon Pacific on Monday, you can watch the video feed and participate in chat via the web.

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Virtually Blind periodically runs “quicklinks” — items that are not long enough for a full story, but are worth a click. Here’s the current batch.

The Chartered Institute of Taxation will be conducting a seminar on virtual world tax issues at Second Life’s Depo Business Park on Tuesday, the 2nd of December at 3:30pm GMT / 07:35am PST.  Here’s a SLURL.  It’s a bit early for U.S. readers, but should be well worth attending.

I just ran across a fascinating discussion of Second Life’s “patent peace” policy from a 2006 listserv post.  The post was written by Linden Lab’s Gene Yoon, and it sheds a lot of light on the thinking behind the rather non-standard patent clause in Second Life’s Terms of Service.

Interesting twist in the SLART trademark lawsuit (via Massively).  It turns out that the avatar ‘Victor Vezina,’ who Richard Minsky named as a defendant (along with Linden Lab) is the avatar of technology writer Victor Keegan, who writes for guardian.co.uk.  Keegan says he “was a pawn caught in the crossfire between Linden [...] and Minsky.”

Last year VB covered a video by Second Life’s ‘Bernard Drax’ of a virtual Guantanamo Bay Detention Camp.  The video of the installation is up for an “Every Human Has Rights” media award. Congratulations!

There’s a solid breakdown of the Blizzard v. MDY case (.pdf) from the North Carolina Journal of Law & Technology.  The interesting thing about this article is that it sets out a potential argument for appeal based on what the Journal sees as the trial court’s somewhat vague restatement of a key test.  Definitely worth a click if you’ve been following the case.

This one’s not directly related to virtual law, but I wanted to highlight Geri Kahn’s new California Immigration Lawyer Blog, because Geri is current VP of Finance of the SL Bar Association, and active in virtual worlds.

Also in SL Bar Association officer blog news, Stephen Wu, the SLBA’s President-Elect, recently posted on the possible impact of an Obama administration on virtual worlds.  Interesting analysis.

Just came across a list of the top-50 internet and digital law blogs that includes VB.  Lots of good sites on here, including a few I hadn’t heard of.

One more blog note: Sean Kane, one of my co-chairs of the Virtual Worlds and Multiuser Online Games committee of the ABA’s Section of Science & Technology Law, is periodically posting to a blog at his new site, Virtual Judgment.

Finally, in case stated-income home loans seemed insufficiently high-risk for your investment profile, some of the usual suspects in the always-entertaining Second Life financial markets are selling securities in Second Life in order “to raise the funds [...] potentially to sue Linden Lab” for incresing the price of some types of virtual land last month; proceeds from the lawsuit supposedly go to investors.

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I recently ran across a story about a dustup over alleged misuse of the “Miss Universe” trademark in Second Life (via Twisted and Tawdry).  Cutting through the drama (and there’s plenty, if your drama levels are low) the story appears to be that “The Trump Organization” — as in Donald — is enforcing its Miss Universe” trademark in Second Life, and Second Life’s provider, Linden Lab, is assisting with enforcement.

While mainstream organizations have taken steps to enforce trademarks in Second Life before, in this case, the recipient of the enforcement action apparently made the note received from Linden Lab public.  Here’s the purported text of that notice:

Subject: Re: Notification of Trademark Infringement Received by Linden Lab

We’re writing to let you know about changes made to your profile in Second Life.  Miss Universe L.P, LLLP — the owner of the Miss Universe trademark — has complained about use of the Miss Universe trademark in the Second Life environment.

Linden Lab respects the rights of both Second Life residents and trademark owners.  Accordingly, Linden Lab has removed uses of “Miss Universe” and “Miss SL Universe” from your Second Life profile.  Please do not continue to use “Miss Universe” or “Miss SL Universe” in the Second Life environment.

Thank you for your cooperation.

Best regards,

Linden Lab

Assuming this is all accurate, it sheds some light the procedures and steps a trademark holder might wish to request that Linden Lab take in similar situations.  Notably, the communication only refers to alteration to profile text, and not removal of in-world items.  Verbiage in profiles is the low-hanging fruit of trademark enforcement in virtual worlds, of course, so I wonder if The Miss Universe Organization targeted only the profile text, or if Linden Lab limited their enforcement to that area.  In any case, it’s interesting to see an example of what Linden Lab will currently do when contacted by mainstream brands (or their attorneys) claiming trademark infringement.

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As part of the SL Bar Association’s speaker series, Kate Fitz (Second Life’s ‘Cat Galeilo’), is presenting “Web 2.0 for Lawyers” in Second Life Saturday, November 22 at 12:00 Noon Pacific time. Fitz, who is a public law librarian in Sacramento, California and member of the California bar, serves as the SLBA’s Vice President of Communications.  She also runs the Lawspot Virtual Worlds Law Library.  Fitz previously presented a well-attended and informative SL Bar Association seminar on online research tools for attorneys.

Like all SL Bar Association seminars, this seminar is free to attend. For those who would like to earn California Continuing Legal Education (CLE) credit for attending, one hour of credit is available for $25.  The seminar is open to everyone, though it will be most interesting to attorneys and law students.  Kate is a great presenter, and I’m certain attendees will come away with some solid new ideas for practice development leveraging Web 2.0 technologies.

You can sign up for a free spot at the seminar and also sign up and pay for CLE credit at the SL Bar Association’s site.  Attendees who want CLE credit can pay for it via PayPal or in-world in Second Life, using Linden Dollars.

Hope to see a lot of readers there!

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There’s an interesting post over at Not Possible In Real Life asking the question: “What is the correct (and legal) way to attribute photography and video shot in virtual worlds?” I was going to leave a comment there, but there’s really no way to answer this question off the cuff, so I’m turning it into a post instead.  You should definitely visit the post at NPIRL too, particularly for the ethics of the situation; I’ll focus on the legal questions here.  The bottom line?  At least under the law as it currently stands, in-world shutterbugs need to be very careful — more careful than they would be in real life.

Here’s the setup.  In a virtual world like Second Life, users have the ability to create things (like buildings, clothing, avatar appearances, and more) and the users retain intellectual property rights in these creations.  Users can also take screenshots of this world, including these creations.  So one user makes a 3D building in a public part of the world using the world’s creation tools, and then she logs off.  The building, of course, stays in the world, since that’s the whole point of persistent spaces.  Later, another user comes along and takes a screenshot of that building with a model-avatar standing in front of it.  The model is wearing a red dress, a complex hairstyle, and a “skin,” all from different content creators.

So that’s our picture.  An avatar wearing a virtual red dress standing in front of a cool building in a virtual world.  The questions are:

  • What rights do the users who created the building, the model’s skin, the model’s hairstyle, and the model’s dress have in their creations?
  • What rights does the screenshot-taker have?
  • What obligations does the screenshot-taker have to the creators of the building, the skin, the hairstyle, and the outfit?

Copyright Law and Real Life Creations

It’s awfully tempting to drop back to real life for an answer.  After all, the virtual world looks a lot like the real one.  And in real life, photographers can take pictures of many (though not all) things without worrying about a copyright lawsuit.  The problem is, that may not translate to the virtual world.  We have to take a look at what copyright law actually protects to see why.

Copyright protectsoriginal works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture” that are “fixed in a tangible form of expression.”

So in real life, copyright law generally prohibits a photograph of a model sitting on the Spoonbridge and Cherry sculpture, a model embedded in a film cell from Titanic, or a model posing with poster-sized blowups of pages of text from my book, Virtual Law.  But the scene with the model in a red dress in front of a building on a public street?  In real life, that’s probably just fine.

That’s because copyright law generally does not protect real-world clothing (because it is deemed a “useful article“) nor does it protect hairstyles and makeup (because they are not “fixed in a tangible form of expression”).  And though copyright law does protect architecture (at least for plans for and designs of buildings constructed after December 1, 1990), taking pictures of and creating artistic works using buildings that are ordinarily visible from public places is specifically allowed. These limitations on copyright law may not mean much in the virtual world, however.

Copyright Law and Virtual World Creations

The problem with applying real world copyright law concepts here is that virtual dresses, hairstyles, personal appearances, and buildings are not exactly the same as real world dresses, hairstyles, personal appearances, and buildings.

Real world hairstyles and various components of individual appearances are generally not protected by copyright because they either are not enumerated in the code, because they are not “fixed in a tangible medium,” or, regarding certain personal appearance attributes, because they do not represent “creative works.”  Dresses and other clothing designs are not protected because they are “useful articles” and copyright law only protects “creative works.”  Buildings have special rules that protect their designs, but these rules do not protect them from photography or other artistic interpretation when they can be viewed from public places.

In the virtual world, however, every dress, hairstyle, avatar “skin,” and building is really a tiny piece of online software, and online software, including the output of the software to the screen, is protected by copyright.  There’s even a copyright office circular (.pdf) describing how to go about registering the copyright in what the office describes as “works accessed via network (websites, homepages, and FTP sites) and files and documents transmitted and/or downloaded via network.”

The Debate

If I’m a content creator, I’m going to argue that when I am making something in Second Life, I am functionally writing code using the graphical interface Linden Lab provides me, and that code should be protected.  Alternatively, I’m making digital art using tools that are only trivially different than those in a program like Maya or Blender.  For some creations (such as virtual world animation packages that cause certain expressions and sounds) the code is obvious; the scripts are written in a formal scripting language.  For others, such as buildings, the code is relatively hidden, but there is a good argument that building a skyscraper in Second Life is just “coding” one using a graphical user interface that operates as an overlay on the code, or that it is, at minimum, no different than any other creative work made using software.  Certainly, no one disputes that artistic creations built using software (such as most of the second Star Wars trilogy) are protected works.

On the other hand, if I’m a virtual world photographer, I’m going to argue that there’s a real-life parallel here, and that buildings, personal appearances, clothing, and other objects in a virtual world should not be protected to any greater degree than they are in the real world.

Conclusions

With the caveat that no case has directly addressed this, I believe that the “code” argument will carry the day because it is simpler, it preserves the public policy arguments behind the real-world exceptions, and mainly, because holding otherwise would undermine the now fairly well-established body of software copyright law.

Many of the comments following the post on this at NPIRL that got me thinking about this in the first place speculate about just how much attribution is necessary when incorporating other people’s work into one’s derivative creations, but I think that the question is largely irrelevant.  If you want to incorporate somebody else’s artistic work into your own you are supposed to seek permission from the copyright holder.  And if you don’t, the copyright holder can sue you — attribution, no matter how extensive, is simply not enough.

Brad Templeton, Chairman of the Board of the Electronic Frontier Foundation covers this in a post entitled “10 Big Myths About Copyright Explained”.

U.S. Copyright law is quite explicit that the making of what are called “derivative works” — works based or derived from another copyrighted work — is the exclusive province of the owner of the original work. This is true even though the making of these new works is a highly creative process.

There are exceptions to this, of course, which generally get lumped together in the catch-all concept of “fair use.”  These include criticism (which I’d argue covers my use of screenshots of in-world scenes in this article) and parody.  The scope of fair use is beyond this article, but for readers who are interested in learning more, the Wikipedia entry on fair use is a good place to start, particularly the list of common misunderstandings of fair use.

This all means that with the exception of limited situations where fair use exceptions apply, I am pretty comfortable concluding that under the law as it stands, selling or otherwise making available derivative works comprising images shot in Second Life of other people’s creations, in most cases, does not qualify for fair use protection and is actionable as copyright infringement.

The easiest way for a content owner to deal with potential infringement is probably via the Digital Millenium Copyright Act (DMCA) policy of the site where content is hosted.  For a private site, that’s probably the site’s web host, and for third party content hosting sites like Flickr and YouTube, the site provider itself typically offers DMCA takedown procedures.  Linden Lab, of course, has a DMCA policy that would apply to in-world objects in the event that a creator wanted to have in-world screenshots removed.

Finally, I must stress again that this issue has not come directly before a court.  Some argue that the law should be changed, and that could happen.  The 2D internet has already challenged the bounds of copyright law, and the 3D internet is bound to take that debate in entirely new directions.  This is one of those interesting areas where there could actually be new law created to apply to virtual spaces, or where established law might be interpreted in a non-traditional way.

For now, though?  Virtual world content creators — from virtual dressmakers to virtual architects — enjoy protection from virtual photographers creating derivative works based on screenshots of their creations that exceeds the protection afforded their real-life counterparts.

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The Polska Republika has launched as the newest self-governance project in Second Life.  Here’s the Polska Republika website, and, since it’s entirely in Polish, here’s a traditionally suspect Google translation.

The Polska Republika has posted a Constitution (here’s the translation).  This is fairly clearly not an attempt to recreate modern Poland — among other discontinuities, there is a Queen, whose face is carved on the front of her palace.

Among the 60 provisions in the Constitution you will find sections on citizenship (freely available to Second Life users who join the Polska Republika Second Life group), elections (universal suffrage, direct, secret ballot), and the official language (Polish).

You’ll also find a section on the administration of justice in the Republika.

Section 39 - The court decides on the agenda of the Polish Republic.
Section 40 - The court shall issue a ruling on behalf of the Republic of Poland.
Section 41 - Queen appoints a judge to the Republic of Poland from among the candidates presented by the Government or at least 20 people, who have decided to confirm the validity of their signatures. In the absence of candidates, Judge [is appointed by] Queen.
Section 42 - The judge is appointed for an indefinite period.
Section 43 - The judge in the exercise of his office is independent and not subject to the Republic of Poland to other authorities.
Section 44 - The judge is not allowed to operate not to reconcile with the principles of autonomy and independence.
Section 45 - Queen of the judge dismissed the Republic of Poland.  [Pretty sure Google's translator ate this one, but I can't guess what was meant.]
Section 46 - The details of the judiciary is governed by decree.

As noted, there are a few sections where I can’t really tell what’s going on because of translation issues, but perhaps someone who reads Polish will correct the Google translation in the comments.

You can visit Polska Republika in Second Life here (SLURL).

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There are three new filings in the SLART trademark suit.  First, Philip Rosedale and Mitch Kapor have filed a Motion to Dismiss (.zip, w/exhibits) arguing that Minsky’s fraud claims lack sufficient specificity.  Minsky has responded (.zip, w/exhibits), and has also filed an Answer (.zip, w/exhibits) to Linden Lab’s counterclaims.

There’s not too much to say about this round of filings. The motion to dismiss the fraud claims against Rosedale and Kapor was expected.  Because of historical misuse of fraud claims, plaintiffs must plead fraud “with specificity” alleging specific fraudulent statements and explaining why the statements are fraudulent.  VB does not speculate on rulings in active cases, but I will note generally that fraud claims are often dismissed on these grounds.

Minsky’s formal Answer to Linden Lab’s counterclaims is fairly straightforward, generally consisting of boilerplate affirmations and denials, as is traditional in formal Answers in U.S. legal proceedings.   Minsky, who represents himself in this action, does include more argument in his Answer than is typical — for example, Minsky admits that he agreed to the Second Life Terms of Service, as Linden Lab alleges, but then argues that another court found the TOS in part unconscionable — but otherwise the Answer is unremarkable.

Up next?  The beginning of discovery, and a likely decision from the court on Minsky’s earlier motion alleging that Linden Lab is not in complaince with the preliminary injunction the parties agreed to covering SLART infringement claims while this case is pending.

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This is an update in the MDY v. Blizzard case.  Sort of.  Here’s the deal — people who have nothing to do with a case sometimes file motions in U.S. Courts.  These motions usually take the form of the amicus brief filed earlier by Public Knowledge, a digital rights advocacy group. But sometimes they take the form of a handwritten rambling screed filed by Jonathan Lee Riches (.pdf) “doing business as Gordon Gekko, Vincent Dragonetti, Steven Iaria, and Mario Cassarino.”

Riches, a South Carolina inmate serving a sentence for wire fraud who has his own Wikipedia entry, apparently kills time while incarcerated by filing briefs like this.  Earlier this year he sued Rockstar Games over similar claims involving Grand Theft Auto IV.  Riches has, at various times, also sued George Bush, Michael Vick, National Public Radio, Barry Bonds, Plato, and the Eiffel Tower.

In the motion in this case, Riches claims that Blizzard’s World of Warcraft:

…caused Riches mind to live in a virtual universe, where Riches explored the landscape committing identity theft and fighting cybermonster rival hacker gangs.  Riches was addicted to video games and lost touch with reality because of defendants.  This caused Riches to commit fraud to buy defendants video games.  Riches chose World of Warcraft over working a legit job. Riches mind became a living video game.

The Arizona court will likely find procedural grounds to dismiss this motion without considering the claims on the merits.

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The Wall Street Journal’s China Journal reports that China is directly taxing profits made on sales of virtual currency, apparently whether or not the virtual world or game provider affirmatively supports “real money trade” in its game or virtual world.  From the WSJ post:

The State Administration of Taxation said on its Web site Wednesday (in Chinese) that China will impose a personal income tax of 20% on profit from virtual money. The announcement, which was distributed to local tax bureaus, specifically takes aim at those who buy virtual currency from gamers and surfers and sell it to others at a mark-up. Taxation officials are granted the right to determine the original price of online virtual currency if the individual fails to provide proof of an original price, it says.

There’s actually not much debate over the whether profits made on sales of virtual goods and currency are taxable in most jurisdictions (at least upon conversion to real cash) but it’s interesting that China has moved to specifically capture this revenue, and has even created rules governing collection.

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