an exploration of eulaw in virtual worlds and mmorpgs: the problem of property (gregynog paper...

8/13/2019 An Exploration of EULaw in Virtual Worlds and MMORPGs: The Problem of Property (Gregynog Paper 1/2011)

http://slidepdf.com/reader/full/an-exploration-of-eulaw-in-virtual-worlds-and-mmorpgs-the-problem-of-property 1/14

Aberystwyth University

An Exploration of EULAw in VirtualWorlds and MMORPGs: The Proble ofPropert!

Gre"!no" Paper #$%%

Kim Barker2/26/2011



MMORPGs and Virta! "#r!ds $r#vide an es%a$e &r#m rea!ity' (hey a&&#rd their sers the %han%e t#

e)ist in a $ara!!e! virta! rea!ity' *n #rder t# +ain a%%ess t# s%h virta! envir#nments, sers are #&ten

re-ired t# $ay sbs%ri$ti#n &ees &#r +enera! a%%ess #r &#r $remim a%%ess t# additi#na! &eatres' *n

additi#n t# this, sers are a!s# re-ired t# %#nsent t# the .nd User i%ense A+reement' One #& the

m#st $r#minent &eatres #& #n!ine s$a%es and the re+!at#ry &ramew#rks re!ied $#n by $r#viders that

is %#mm#n t# a!! &#rms #& #n!ine virta! s$a%e is this %#ntra%t between the $!at&#rm $r#viders and the

sers #& the #n!ine s$a%e' (his %#ntra%ta! arran+ement is kn#wn as the .nd User i%ense

A+reement'1 (hese a+reements +#vern the virta! envir#nment and seek t# re+!ate behavi#r within

s%h s$a%es'

Given that there is n# sin+!e meth#d #& +#vernan%e entire!y sited t# re+!atin+ virta! s$a%es, there

are inherent &!aws with ea%h, n#t !east be%ase $red#minant!y the r!es are desi+ned &#r a$$!i%ati#n in

the rea! w#r!d with estab!ished hist#ries and $rin%i$!es t# s$$#rt their #$erati#n' #wever, in the

virta! w#r!d, this is n#t the %ase' (he system #& re+!ati#n is st be+innin+ t# emer+e' #nse-ent!y,

n# system has yet been ab!e t# di%tate that it #+ht t# be the s#!e a$$!i%ab!e system' 3es$ite this,

%#ntra%t !aw has be%#me the &av#red re+!at#ry meth#d #& %h#i%e by $!at&#rm $r#viders' (hat d#es

n#t h#wever mean that it a%%rate!y re&!e%ts the $#siti#ns #& the $arties, #r that s%h a system is &air'

(he %#ntra%ta! re+!ati#n #& #n!ine +ames and virta! w#r!ds has %ased s#me sbstantia! debate'2

(hese .UA a+reements are %#m$rehensive +#vernan%e d#%ments that re+!ate the re!ati#nshi$s #&

sers and deve!#$ers' 4i+ni&i%ant!y, s%h .UAs d# n#t re+!ate the re!ati#nshi$s between sers and

sers, #n!y between a ser and the deve!#$er i'e' the %#ntra%ta! re!ati#nshi$s are 151 rather than

15many'

*n additi#n t# this, the .UAs %#ntain stere#ty$i%a! standard %!ases re!atin+ t# ri+hts arisin+ #t #&

intera%ti#n and inv#!vement in the virta! envir#nment' #wever, des$ite these br#ad +enera!isati#ns,

the .UAs #& vari#s #n!ine +ames and w#r!ds %an and s#metimes d# vary' (he di&&eren%es are m#re

$r#n#n%ed between virta! w#r!ds and #n!ine +ames, with the m#st n#tab!e di&&eren%es a$$earin+ in

1

erea&ter .UA2 3ebate ab#t %#ntra%ta! re+!ati#n #& MMORPGssee in $arti%!ar5 7air&ie!d, 4te$hens, Reveni, Kayser,

3ranske, 3annenber+, ast#wka, nter'

Pa+e # #& %&



the (erms and #nditi#ns #& the virta! w#r!d, Second Life. (# &!!y nderstand the rami&i%ati#ns #& the

distin%ti#ns between the di&&erent +#vernin+ %#ntra%ts, it is ne%essary t# #t!ine the br#ad di&&eren%es

between virta! w#r!ds and MMORPGs, des$ite the &a%t that s#me %#mmentat#rs treat them as #ne

and the same #r as sb %ate+#ries #& #ne an#ther'

VWs and MMORPGs

Virta! envir#nments have been de&ined by vari#s %#mmentat#rs bt with a distin%t !a%k #&

a+reement' Be!! h#wever, has ama!+amated these de&initi#ns t# determine that a virta! w#r!d is5

8A syn%hr#n#s, $ersistent netw#rk #& $e#$!e, re$resented as avatars &a%i!itated by netw#rked

%#m$ters'9:

(here are additi#na! &eatres whi%h srr#nd their s#%ia! intera%tivity and e)tensive $#tentia! &#r

+eneratin+ in%#me whi%h are a!s# attra%tive t# s#me sers' One Second Lifer %!aims t# have be%ame

a mi!!i#naire as a res!t #& her virta! a%tivities; %han+in+ a <10 investment int# <1 mi!!i#n in st :0

m#nths'=

"ithin this br#ad +enera!isati#n, there are tw# distin%t bran%hes #& virta! s$a%e' (he &irst is #n!ine

+ames #r, Massive!y M!ti$!ayer On!ine R#!e P!ayin+ Games >MMORPGs?' (hese in%!de WoW, EQ

II, Entropia Universe, Lineage and many many m#re' (he se%#nd bran%h is virta! w#r!ds, in%!din+

The Sims Online, Habbo Hotel and Second Life am#n+st #thers' "#r!ds are +enera!!y s$a%es where

there are n# set +#a!s #r !eve!s' 4%h s$a%es are said t# be @ns%ri$ted' *n %#ntrast, MMORPGs are

s%ri$ted envir#nments; sers are nab!e t# $r#+ress n!ess they %#m$!ete set tasks et%' (his is an

im$#rtant distin%ti#n be%ase in w#r!ds, there are m#re &reed#ms &#r sers and they a!s# have the

3 M Be!!, @(#ward a 3e&initi#n #& 8Virta! "#r!ds9 V"Resear%h 1>1? 200C, avai!ab!e #n!ine; see a!s#, K nt,

@(his and *s D#t E#r and5 Second Life, #$yB#t, and the ##min+ Festi#n #& Virta! Pr#$erty Ri+hts >200H200C? I (e) Rev .nt J 4$#rts 1=1, 11

4 A hn+, @Anshe hn+ Be%#mes 7irst Virta! "#r!d Mi!!i#naire 2 D#vember 2006, avai!ab!e #n!ine5

Lhtt$5//www'anshe%hn+'%#m/in%!de/$ress/$ressre!ease21106'htm!N a%%essed 20 7eb 2011

Pa+e ' #& %&



abi!ity t# write their #wn $ie%es #& %#de whi%h $r#d%e items and #be%ts'

*n additi#n t# this, what %#m$!i%ates the sitati#n s#mewhat is the &a%t that many #& the massive!y

m!ti$!ayer #n!ine r#!e $!ayin+ +ames are set in w#r!ds' D#t the virta! w#r!ds s%h as Second Life;

+ames s%h as WoW are set in the &i%ti#na! inH+ame virta! w#r!d #& Aer#th &#r e)am$!e, whereas

EverQest II is set in D#rrath' 4# there are 2 kinds #& w#r!d; virta! w#r!ds as distin%t envir#nments,

and the w#r!ds in whi%h +ames are set'

"hi!st there are %hara%teristi% di&&eren%es between virta! w#r!ds and #n!ine +ames, they re!y #n the

same d#minant re+!at#ry me%hanism; the .UA' .a%h w#r!d and +ame tai!#rs the %#ntra%t t# sit

their individa! $!at&#rm and wishes' *n the UK, there have t# date been n# %ha!!en+es t# these

d#minant %#ntra%ta! a+reements there are vari#s $r#b!ems with their %#ntents that wi!! be

dis%ssed sh#rt!y' *n the U4, %ases have been &i!ed in !imited %ir%mstan%es #n vari#s as$e%ts

re!atin+ t# virta! w#r!ds and +ames5

(he b#ndary between the rea! w#r!d and the virta! w#r!d is e)treme!y b!rred in the di+ita! s#%iety,

even m#re s# in the rea!m #& MMORPGin+ dis$tes5

1? !ragg v Linden Labs "Second Life# Bra++ ha%ked int# an #n!ine !and a%ti#n site and

$r%hased virta! !and at a &ra%ti#n #& the $ri%e' 4e%#nd i&e terminated his a%%#nt, de$rivin+

him #& between <6000H<C000 in rea! w#r!d m#ney #& assets' Bra++ t##k the matter t# %#rt,

bt it was sett!ed be&#re d+ment was entered' (he terms #& the sett!ement are nkn#wn bt

Bra++ had his virta! assets and !and rest#red'

2? !lac$Sno% Interactive v &'thic Entertainment Ltd B!a%k4n#w were en+a+ed in a +#!d

&armin+ #$erati#n and when they were %!#sed d#wn, they $rsed Mythi% .ntertainment, the

$r#vider #& the MMORPG (ar$ )ge of *amelot, %!aimin+ that the .UA was an antiH

%#m$etitive me%hanism and was %#ntrary t# %#m$etiti#n !aws' (his %ase was never sett!ed

be%ase B!a%k4n#w disa$$eared with#t $ayin+ !e+a! &ees' *nterestin+ rea! w#r!d ar+ment

5 4 R#bbins and M Be!!, Second Life for (mmies >#hn "i!ey J 4#ns, O)&#rd, 200C?

Pa+e & #& %&



n#nethe!ess'

:? Hernande+ v IE US Ltd ernande br#+ht his %!aim demandin+ t# kn#w whether #ne

ser %#!d en&#r%e the .UA a+ainst an#ther ser' *G. were an#ther ser wh# was %#!!e%tin+

in +ame items and +#!d in WoW t# se!! #n t# #ther $!ayers' ernande %!aims that s%h an

a%tivity &!##ds the +ame with #be%ts and deva!es $r#$erty' A sett!ement was rea%hed in the

U4, where the %ase was br#+ht, in whi%h *G. U4 a+reed n#t t# $arti%i$ate in s%h a%tivity'

#wever, this d#es n#t mean m%h be%ase *G. U4 %!aims it is n#t the entity that is

en+a+in+ in s%h a%tivity; and that the entity d#in+ s# is *G.'

=? Soth -orea have estab!ished a dedi%ated $#!i%e team t# dea! with virta! $r#$erty in%idents

arisin+ &r#m MMORPGin+ and Virta! "#r!d intera%ti#n s%h is the sie #& the market and the

nmber #& $#tentia! $r#b!ems'

Given that these are st s#me #& the in%idents that have #%%rred re%ent!y in re!ati#n t# virta!

$r#$erty and inte!!e%ta! $r#$erty ri+hts, it is in%reasin+!y im$#rtant that a s#!ti#n is &#nd' (he

b#ndary between the rea! and the virta! is s# thin that dis$tes in the virta! are re+!ar!y a$$ear in

the rea!'''we have a stran+e kind #& virtrea! dis$te arisin+'

D#ne #& these e)am$!es %#ntain %ha!!en+es dire%t!y #n +ame .UAs' (hese res!ts are !ike!y t# be

the res!t #& the a$$!i%abi!ity and va!idity #& %!i%kHwra$ %#ntra%ts' #rts have +enera!!y he!d that s%h

%#ntra%ts are va!id and are there&#re en&#r%eab!e' (here have #n!y been de%!arati#ns #& inva!idity in

!imited %ir%mstan%es whi%h sa!!y srr#nd n%#ns%i#nab!e %!ases; !ragg v Linden esearch Inc

>200? in whi%h the %#rt he!d that the dis$te res#!ti#n %!ase was n%#ns%i#nab!e and there&#re

n#nHen&#r%eab!e'

EULAs:

3es$ite the %#rts re%#+nisin+ %!i%kHwra$ a+reements, the .UAs are +enera!!y n#nHne+#tiab!e and

are #&&ered t# sers #n a Qtake it #r !eave itQ basis' Given this a$$r#a%h by +ame and w#r!d deve!#$ers,

Pa+e ( #& %&



it is nsr$risin+ that sers seek t# %ha!!en+e the b#ndaries im$#sed $#n them' (here is $resent!y

n# b#dy #& dedi%ated virta! !aw; the %rrent &ramew#rk %#nsists #& a mi)tre #& %#$yri+ht and

%#ntra%t' *n 4#th K#rea &#r e)am$!e, there are dedi%ated b#dies that dea! e)%!sive!y with .UAs;

reviewin+ them and their terms and %#nditi#ns' (he 4#th K#rean 7air (rade #mmissi#n has its #wn

dedi%ated #ntra%ts Review #mmittee whi%h reviews .UAs #& +ames and w#r!ds' 6 (here is n#

e-iva!ent in the UK dea!in+ s#!e!y with MMORPG and Virta! "#r!d isses' Eet' A BB Pan#rama

investi+ati#n e)aminin+ as$e%ts #& %#m$ter +amin+ &#nd that the UK is &#!!#win+ a simi!ar $ath t#

that 4#th K#rea e)$erien%ed #n its $r#+ressi#n t# an #n!ine +amin+ h#ts$#t' As s%h, it is $erha$s

time their e)am$!e was &#!!#wed in #rder t# address s#me #& the isses arisin+ in re!ati#n t# virta!

e)isten%es'

As $revi#s!y menti#ned, there are s#me di&&eren%es in the .UAs that are re!ied $#n by #n!ine

+ame and virta! w#r!d deve!#$ers' One #& the $rime e)am$!es #& this is in re!ati#n t# the a$$!i%ab!e

!aw %!ases #r risdi%ti#n %!ases that are %#ntained within the a+reements themse!ves' Many .UAs

state that the a$$!i%ab!e !aw wi!! be the !aw #& their d#mesti% state i'e' U4 +ame deve!#$ers re!y $#n

the !aw #& a sti$!ated state; Second Life &#r e)am$!e, re!ies #n a!i&#rnian aw'C #wever, #ther

+ames re!y #n #ther risdi%ti#ns the (ar$ )ge of *amelot and Ultima Online .UAs e)$ress!y

$r#vide &#r the !aw #& the UK and .U t# a$$!y t# them' I (his is nsa!, and &ar &r#m the n#rm' (his

may e)$!ain why there is s%h a !aisseH&aire attitde t# the terms and %#nditi#ns %#ntained within

.UAs' *t is im$#rtant t# remember that the .UAs are !e+a!!y bindin+ %#ntra%ta! a+reements, and

the sers that are a+reein+ t# them %an be anywhere in the w#r!d and there&#re b#nd by the !aw #&

the U4 #r the UK even i& they are n#t $!ayin+ the +ame in the U4 #r the UK'

Other terms #& the .UAs re!ate t# $r#$erty ri+hts, whi%h is the main &#%s #& this $a$er' (he .UAs

#& every virta! w#r!d and #n!ine +ame %#ntain $r#visi#ns re!atin+ t# the #wnershi$ #& ri+hts arisin+ #t

#& intera%ti#n and +ame $!ay' (he $re%ise terms and %#nditi#ns are very $!at&#rm s$e%i&i%, bt they a!!

+enera!!y &#!!#w a set $attern and em$!#y standard terms' (here are e)%e$ti#ns t# this +enera! r!e;

6 Un+HGi E##n, @Rea! M#ney (radin+ in MMORPG *tems 7r#m a e+a! and P#!i%y Pers$e%tive #rna! #& K#rean

di%atre, V#!' 1, $$' =1C, 200C7 eremy Vine, BB Pan#rama, @Addi%ted t# Games 7irst br#ad%ast 6 3e%ember 2010'8 4e%#nd i&e .UA, !ase 12'2' 1 3e%ember 2010, avai!ab!e #n!ine5

Lhtt$5//se%#nd!i&e'%#m/%#r$#rate/t#s'$h$St#s12N 20/2/119 De!s#n, @(he Virta! Pr#$erty Pr#b!em5 "hat Pr#$erty Ri+hts in Virta! Res#r%es Mi+ht ##k ike, #w (hey

Mi+ht "#rk, and "hy (hey are a Bad *dea' M%Ge#r+e aw Review =15 2C1, 2C= >2010?

Pa+e ) #& %&

http://secondlife.com/corporate/tos.php#tos12




Second Life bein+ the m#st $#$!ar and we!! kn#wn' (# e)$!#re this isse in m#re detai!, it is

ne%essary t# re&er t# the e)a%t %#ntra%ta! terms #& the m#st $#$!ar #n!ine +ame 10 World of

Warcraft and the m#st $#$!ar virta! w#r!d Second Life'

WoW EULA:8Ownershi$'A!! ri+hts and tit!e in and t# the 4ervi%e >in%!din+ with#t !imitati#n any ser a%%#nts, tit!es,%#m$ter %#de, themes, #be%ts, %hara%ters, %hara%ter names, st#ries, dia!#+e, %at%h$hrases, !#%ati#ns, %#n%e$ts, artw#rk, animati#ns, s#nds, msi%a! %#m$#siti#ns, adi#Hvisa!e&&e%ts, meth#ds #& #$erati#n, m#ra! ri+hts, any re!ated d#%mentati#n, 8a$$!ets,9 trans%ri$ts#& the %hat r##ms, %hara%ter $r#&i!e in&#rmati#n, re%#rdin+s #& +ames? are #wned by B!iard#r its !i%ens#rs' (he Game and the 4ervi%e are $r#te%ted by United 4tates and internati#na!!aws, and may %#ntain %ertain !i%ensed materia!s in whi%h B!iards !i%ens#rs may en&#r%e

their ri+hts in the event #& any vi#!ati#n #& this A+reement'911

WoW EULA:8Ownershi$/4e!!in+ #& the A%%#nt #r Virta! *tems'B!iard d#es n#t re%#+nie the trans&er #& "#r!d #& "ar%ra&t A%%#nts #r BD.( A%%#nts>ea%h an A%%#nt9?' E# may n#t $r%hase, se!!, +i&t #r trade any A%%#nt, #r #&&er t#$r%hase, se!!, +i&t #r trade any A%%#nt, and any s%h attem$t sha!! be n!! and v#id' B!iard#wns, has !i%ensed, #r #therwise has ri+hts t# a!! #& the %#ntent that a$$ears in the Game' E#a+ree that y# have n# ri+ht #r tit!e in #r t# any s%h %#ntent, in%!din+ with#t !imitati#n thevirta! +##ds #r %rren%y a$$earin+ #r #ri+inatin+ in the Game, #r any #ther attribtesass#%iated with any A%%#nt' B!iard d#es n#t re%#+nie any $r$#rted trans&ers #& virta!$r#$erty e)e%ted #tside #& the Game, #r the $r$#rted sa!e, +i&t #r trade in the 8rea! w#r!d9#& anythin+ that a$$ears #r #ri+inates in the Game' A%%#rdin+!y, y# may n#t se!! inH+ame

items #r %rren%y &#r 8rea!9 m#ney, #r e)%han+e th#se items #r %rren%y &#r va!e #tside #&the Game'912

Second Life EULA:8E# retain any and a!! *nte!!e%ta! Pr#$erty Ri+hts in #ntent y# sbmit t# the 4ervi%e'E# retain any and a!! *nte!!e%ta! Pr#$erty Ri+hts y# a!ready h#!d nder a$$!i%ab!e !aw in#ntent y# $!#ad, $b!ish, and sbmit t# #r thr#+h the 4ervers, "ebsites, and #ther areas#& the 4ervi%e, sbe%t t# the ri+hts, !i%enses, and #ther terms #& this A+reement, in%!din+ anynder!yin+ ri+hts #& #ther sers #r inden ab in #ntent that y# may se #r m#di&y'91:

(he e)$ress statements made by the deve!#$ers #& these tw# virta! $!at&#rms hi+h!i+ht the

di&&eren%es in a$$r#a%h ad#$ted in re!ati#n t# the ri+hts that sers have #ver the $r#$erty that they

%reate and se in virta! envir#nments' (he +enera! a$$r#a%h is t# in%!de an e)$ress waiver in the

.UA #& a!! inte!!e%ta! $r#$erty ri+hts' (his means that when sers sim$!y %!i%k t# a+ree t# the .UA

whi%h they %ann#t i+n#re i& they wish t# a%%ess the virta! $!at&#rm they are handin+ #ver their

ri+hts t# the deve!#$ers' *n +ames, this ar+ment has m#re stren+th and is m#re $ersasive be%ase

10 eremy Vine, BB Pan#rama, @Addi%ted t# Games 7irst br#ad%ast 6 3e%ember 2010'11 "#r!d #& "ar%ra&t .UA, I 3e%ember 2010, avai!ab!e #n!ine5 Lhtt$5//s'b!iard'%#m/enHs/%#m$any/!e+a!/w#wt#'htm!N a%%essed 20 7eb 201112

ibid13 4e%#nd i&e .UA, !ase '1' 1 3e%ember 2010, avai!ab!e #n!ine5Lhtt$5//se%#nd!i&e'%#m/%#r$#rate/t#s'$h$St#s12N 20/2/11

Pa+e * #& %&





#& the natre #& a +ame; it is $ersistent and +#a!H#riented' (here is n#t a !#t #& s%#$e &#r sers t#

deve!#$ virta! items and add t# the %#mm#ns in MMORPGs'

#wever, s%h a $#siti#n in a virta! w#r!d s%h as Second Life has !ess stren+th; !ar+e!y be%ase

virta! w#r!ds, whi!st a!s# bein+ $ersistent are n#t +#a!H#riented' M#re#ver, they are sa!!y re!iant

$#n the sers t# deve!#$ them, add t# them and %reate within them' "ith virta! w#r!ds, there are n#

e)$!i%it +#a!s that have t# be met in #rder t# $r#+ress and deve!#$' *n additi#n t# this, Second Life

$r#vides t##!s &#r sers t# +enerate their #wn %#m$ter $r#+rammin+ %#de, thereby $r#d%in+

additi#na! virta! items that were n#t a!ready in e)isten%e' (his $r#%ess #& s%ri$tin+ is &ar m#re

%reative and is a%tive!y en%#ra+ed by the mantra #& inden Resear%h *n% the deve!#$ers #& Second

Life'

.ssentia!!y then, the %riti%a! di&&eren%e between #n!ine +ames and virta! w#r!ds re!ates t# the ways in

whi%h their %#ntra%ta! a+reements with their sers de$rives th#se sers #& any $#tentia! $r#$erty

ri+hts that may arise as a res!t #& a%tivity in the virta! $!at&#rm' MMORPGs re-ire sers t#

e)$ress!y waive their ri+hts' Virta! "#r!ds, Second Life in $arti%!ar di&&ers in this a$$r#a%h;

$r$#rted!y +rantin+ sers inte!!e%ta! $r#$erty ri+hts' "hi!st this is a ste$ &#rward, it is n#t %#m$!ete!y

$er&e%t' (here are tw# ty$es #& $r#$erty that %an arise in virta! w#r!ds and #n!ine +ames; inte!!e%ta!

$r#$erty is #ne &#rm' (he #ther &#rm #& $r#$erty that %an arise &r#m virta! envir#nment intera%ti#n is

virta! $r#$erty' (his is s#methin+ #ther than inte!!e%ta! $r#$erty, a!th#+h b#th are essentia!!y

intan+ib!e assets, and #ne %an ar+ab!y stem &r#m the #ther'

(he .UAs tend t# make e)$!i%it re&eren%e t# inte!!e%ta! $r#$erty bt n#t virta! $r#$erty' #wever, it

is !ike!y that an #be%t s%h as a virta! sw#rd et% that is $r#te%ted by a virta! $r#$erty d#%trine t#

the e)tent #ne e)ists w#!d a!s# be %a$ab!e #& inte!!e%ta! $r#$erty $r#te%ti#n' *& this was t# be the

%ase, then it is !ike!y that sers wh# %#!d $#tentia!!y #wn virta! $r#$erty w#!d be restri%ted as t#

what they %#!d d# with s%h $r#$erty i& they did n#t a!s# #wn the inte!!e%ta! $r#$erty ri+hts that a!s#

sbsist in it'

World of Warcraft – a +ase stud!

Pa+e , #& %&



WoW is #ne #& the m#st $#$!ar and s%%ess&! #n!ine r#!e $!ayin+ +ames' ike a!! +ames and virta!

w#r!ds, it re-ires sers t# a+ree t# the terms and %#nditi#ns %#ntained within its .nd User i%ense

A+reement' Many #& these terms are standard %!ases that are re$!i%ated in #ther .UAs' *n re!ati#n

t# $r#$erty, and inte!!e%ta! $r#$erty, the WoW .UA %#ntains a detai!ed %!ase whi%h sets #t the

ri+hts #& sers'

(his %!ase states that sers e)$ress!y waive their ri+hts t# any inte!!e%ta! $r#$erty that may arise #t

#& +ameH$!ay and intera%ti#n' 4%h a %!ase $resents di&&i%!ties t# sers in res$e%t #& the $r#$erties

in the +ame itse!&' 4%h $r#$erties in%!de avatars, wea$#ns and +#!d #r !##t' .a%h #& these

$r#$erties are %a$ab!e #& tradin+ des$ite the &a%t that s%h a%tivities are $r#hibited by the WoW

.UAs' 4%h a%tivities are kn#wn as QRM(Q1= #r QGray MarketsQ be%ase whi!st $r#hibited and

dis%#ra+ed by the $!at&#rm $r#viders B!iard .ntertainment in the %ase #& WoW they #&ten take

!itt!e a%ti#n t# $revent a%tivities #%%rrin+' (he e)%e$ti#n bein+ 4#ny .ntertainment, wh# entered int#

an a+reement with eBay t# $revent EverQest items bein+ !isted' 4#ny has sin%e intr#d%ed its #wn

tradin+ %entre in its +ames'1

RM( %an #&ten take $!a%e &#r any items that are $resent in a virta! w#r!d #r MMORPG' #wever,

there is a restri%ti#n $#n s%h a%tivities; the $!at&#rms are n#t inter%han+eab!e' (here&#re, i& a ser in

WoW has a s$are sw#rd that he is n#t sin+, he may de%ide t# se!! it' e %#!d d# this dire%t!y t#

an#ther ser in WoW , #r he %#!d !ist the item #n #ne #& the RM( websites' 16 (he ser may re%eive an

#&&er &r#m a ser in WoW &#r his sw#rd and de%ide t# meet in WoW t# e)%han+e the item' #wever,

the ser may a!s# $#tentia!!y re%eive an #&&er &r#m a ser #& a di&&erent $!at&#rm s%h as EverQest II.

*n this sitati#n, the ser #& WoW %#!d se!! his sw#rd t# the EverQest II ser bt the byer w#!d be

nab!e t# se the WoW sw#rd in EQ II be%ase the $!at&#rm %#de !an+a+e is in%#m$atib!e' (his

makes the RM( market n#nHinter%han+eab!e'

#wever, re+ard!ess #& this !a%k #& inter%han+eabi!ity and !a%k #& e)$ress disa$$r#va!, RM( and Gray

14

Rea! M#ney (rade; herea&ter RM('15 4#ny 4tati#n .)%han+e16 .'+' www'i+e'%#m

Pa+e - #& %&



Markets d# e)ist and are thrivin+' (his t## +ives rise t# isses #& $r#$erty ri+hts; i& ri+hts are e)$ress!y

waived by assent t# the .UA, h#w %an sers by and se!! items #& $r#$erty .-a!!y, i& sers have

n# ri+hts t# the inte!!e%ta! $r#$erty, by se!!in+ items that are sbe%t t# *PRs, are they brea%hin+

%#$yri+ht

3es$ite d#bts as t# whether #r n#t $r#$erty ri+hts %an #r d# e)ist in virta! $r#$erty, deve!#$ers seek

t# %!aim any and a!! ri+hts that may a%%re'1 (his indi%ates that n#t #n!y d# deve!#$ers be!ieve that

ri+hts d# e)ist, they a!s# seek t# $revent sers bein+ ab!e t# en&#r%e ri+hts' Re-irin+ %#ntra%ta!

waivers #& ser ri+hts im$!ies that deve!#$ers a%%e$t sers ri+hts e)ist in virta! $r#$erty and #n!ine

+ames'1C *t is entire!y $#ssib!e that deve!#$ers sti&y s%h waivers #n a @st in %ase basis rather than

an e)$ress a%kn#w!ed+ment #& sers ri+hts'

Second Life – a +ase stud!

Reveni states that, 8O&ten a virta! w#r!dQs bsiness m#de! en%#ra+es +amers t# $r#d%e and se!!

virta! +##ds, whi%h in+rains in $!ayers an e)$e%tati#n #& #wnershi$ in their items and %reati#ns

re+ard!ess #& any %#ntrary !i%ensin+ !an+a+e'91I (his, in %#ntrast t# the de&a!t $#siti#n ad#$ted by

MMORPGs is re&!e%ted in the $hi!#s#$hy #& the virta! w#r!d Second Life' (his $!at&#rm sets itse!&

a$art &r#m #thers, and a!s# &r#m +ames' *t se!!s itse!& as bein+ a virta! w#r!d %reated and #wned by its

sers' 4%h a %!aim s++ests that the deve!#$ers #& Second Life +rant $r#$erty ri+hts and inte!!e%ta!

$r#$erty ri+hts t# their residents' D#t #n!y this, bt +iven that sers are ab!e t# +enerate and deve!#$

their #wn $r#$erty and #be%ts, sers %an %h##se wh# %an a%%ess them and whether #r n#t t# se!!

s%h items' *n dire%t %#ntrast t# the $#siti#n #& m#st MMORPGs, Second Life a%tive!y en%#ra+es

sers t# be %reative'

RMT and Propert! Ri"hts

*n additi#n t# -esti#ns re!atin+ t# ri+hts srr#ndin+ the sa!e and trans&er #& ri+hts in the +ames, what

17 .UAs +enera!!y18

. Reveni, On /irtal Worlds0 *op'right and *ontract at the (a%n of the /irtal )ge, C2 *ndiana aw #rna!261 T200 2C6

19 *bid 26

Pa+e %$ #& %&



ha$$ens when transa%ti#ns are dis$ted #r $r#b!ems arise Given that the .UAs sa!!y $r#hibit the

sa!e and resa!e #& $r#$erty arisin+ #t #& +ame intera%ti#n, what ri+hts and re%#rse d# sers have

when thin+s +# wr#n+ (he .UAs are n#t %#ntra%ts that e)ist between ser A and a!! #ther sers #&

WoW ' (he .UAs are a+reements between ser A and the $!at&#rm $r#vider' (hey are #ne t# #ne

rather than #ne t# many %#ntra%ts' Tdia+ram #nse-ent!y, there are n# e)$ress %#ntra%ta!

re!ati#nshi$s between sers' (here may be (erms #& 4ervi%e #r #des #& #nd%t that are in

#$erati#n t# set #t standards #& behavi#r that are e)$e%ted' #wever, there is n# %!ase in the

.UA that states the same a+reements e)ist between sers as between sers and deve!#$ers' (he

Second Life .UA indi%ates that it im$#ses #b!i+ati#ns between sers, and re%#+nises that #ther

sers may have nder!yin+ ri+hts in the %#ntent bt is a!#ne in d#in+ s#5

8': E# +rant %ertain #ntent !i%enses t# sers #& 4e%#nd i&e by sbmittin+ y#r #ntent t#

$b!i%!y a%%essib!e areas #& the 4ervi%e'

E# a+ree that by $!#adin+, $b!ishin+, #r sbmittin+ any #ntent t# any $b!i%!y a%%essib!e

areas #& the 4ervi%e, y# hereby +rant ea%h ser #& 4e%#nd i&e a n#nHe)%!sive !i%ense t#

a%%ess the User #ntent thr#+h the 4ervi%e, and t# se, re$r#d%e, distribte, $re$are

derivative w#rks #&, dis$!ay, and $er&#rm the #ntent *nH"#r!d #r #therwise #n the 4ervi%e

s#!e!y as $ermitted by y# thr#+h y#r intera%ti#ns with the 4ervi%e nder these (erms #&

4ervi%e' (his !i%ense is re&erred t# as the User #ntent i%ense, and the #ntent bein+

!i%ensed is re&erred t# as User #ntent'920

(his #bvi#s!y re!ates t# the re%#+niti#n by Second Life #& the $r#$erty ri+hts that sers have in the

%#ntent that they +enerate' (he ma#rity #& #ther .UAs d# n#t re$!i%ate this m#ve by Second Life'

And in &a%t, is a dire%t %#ntradi%ti#n t# the $#siti#n taken by #ther +ame $!at&#rm $r#viders s%h as

Lineage II, whi%h e)$ress!y states that a!! sers wi!! waive their ri+hts t# their inte!!e%ta! $r#$erty and

#ther ri+hts' .ven m#re e)treme!y, the same .UA a!s# re-ires that sers waive their ri+hts t# any

$r#$erty that they may %reate and $!#ad int# the +ame'21

8*n additi#n t# $!ayers earnin+ m#ney &r#m se%#ndary markets, s#me $!ayers se virta!

w#r!ds as investment vehi%!es, viewin+ their inH+ame assets m%h !ike an invest#r views

st#%ks and b#nds' (# these $!ayers, the virta! w#r!d is m#re than st a 8+ame,9 and .UA

terms re-irin+ these $!ayers t# waive inte!!e%ta! $r#$erty ri+hts may be sbstantive!y

20 4e%#nd i&e .UA, !ase ':' 1 3e%ember 2010, avai!ab!e #n!ine5

Lhtt$5//se%#nd!i&e'%#m/%#r$#rate/t#s'$h$St#s12N 20/2/1121 Lineage II .UA, !ast m#di&ied A$ri! 200C, !ase 6>%?, a%%essed 1 7ebrary 2011,

htt$5//s'n%s#&t'%#m/en/!e+a!/serHa+reement/LineageH2HserHa+reement'htm!

Pa+e %% #& %&





n%#ns%i#nab!e'922

*nH+ame $r#$erty is n#t #n!y %#n&ined t# the virta! w#r!d' (ransa%ti#ns &#r virta! +##ds %an be%#me

bi+ bsinesses; with many sers seekin+ t# $r%hase desirab!e items in #rder t# enhan%e their

+amin+ e)$erien%e' #wever, the $r#%eeds #& virta! +##ds sa!es %an be %#nverted int# rea! w#r!d

$r#&its; Second Life is st #ne $!at&#rm whi%h h#sts its #wn %rren%y e)%han+e, a!!#win+ sers t#

%#nvert their virta! inden 3#!!ars int# rea! w#r!d d#!!ars #r $#nds #r .r#s' As s%h, what may start

as a +ame %an ra$id!y deve!#$ int# rea! in%#me'

4%h deve!#$ments are be+innin+ t# +ain re%#+niti#n in the rea! w#r!d !e+a! systems, with virta!

$r#$erty and virta! %rimes bein+ re%#+nised in UK %#rts &#r the &irst time this m#nth'2:

3es$ite this, and des$ite the &a%t that many .UAs e)$ress!y $r#hibit the sa!e #& inH+ame #be%ts and

$r#$erty, many sers sti!! en+a+e in s%h a trade' #wever, there are severa! areas #& this that %an +#

wr#n+' (he Gray Markets +ive rise t# nmer#s isses, in re!ati#n t# b#th $r#$erty ri+hts and

#wnershi$ and in re!ati#n t# dis$te res#!ti#n &#r sers en+a+in+ in trades that &ai! t# rea%h

%#m$!eti#n' *n additi#n t# this, there is a!s# a need t# %#nsider the im$a%t #& vari#s +amin+

%hara%teristi%s and MMORPGin+ deve!#$menta! t##!s $#n the $#tentia! ri+hts #& sers $r#$erty'

M#re#ver, there is a!s# a need t# %#nsider the deve!#$menta! t##!s and %hara%teristi%s and their

im$a%t $#n RM( and Gray Market transa%ti#ns' One $arti%!ar!y %#n%ernin+ as$e%t is s%ar%ity'

.-a!!y, +#!d &armin+, ner&in+ and wiardin+ %an a!s# have an im$a%t $#n s%h tradin+ a%tivities'

(hese terms re!ate t# s$e%i&i% a%ts in #n!ine +ames and virta! w#r!ds whi%h im$a%t $#n +ame

#be%ts, wh# %#ntr#!s the #be%ts, the va!e #& the #be%ts and their desirabi!ity' (he .UAs are

ss$i%i#s!y si!ent #n these isses, menti#nin+ #n!y that the deve!#$ers have the ri+ht t# a!ter as$e%ts

#& the +ame #r w#r!d with#t +ivin+ rise t# %!aims by sers' Given that dis$te res#!ti#n %!ases in

the .UAs re!ate t# isses arisin+ between the sers and the deve!#$ers rather than #ther sers,

22 . Reveni, On /irtal Worlds0 *op'right and *ontract at the (a%n of the /irtal )ge, C2 *ndiana aw #rna!261 T200 :02

23 @Wyn+a ha%ker &a%es ai! &#r <12 mi!!i#n the&t9 avai!ab!e #n!ine5 Lhtt$5//www'thisiss#thdev#n'%#'k/news/AK.RHA3M*(4H4(.A*DGH12mHPOK.RH*P4/arti%!eH:10II=Hdetai!/arti%!e'htm!N a%%essed 20 7ebrary 2011'

Pa+e %# #& %&



there are very &ew #$ti#ns avai!ab!e t# sers'

.on+lusion:

*n %#n%!si#n, the .UAs are restri%tive &#r sers and heavi!y &av#r the ri+hts #& deve!#$ers, whi%h is

t# be e)$e%ted' #wever, the $reva!en%e and nmbers inv#!ved with #n!ine +amin+ and virta! w#r!d

intera%ti#n are n#w !ar+e en#+h t# start %ha!!en+in+ the $#wer and d#minan%e #& the deve!#$ers'

(he dis$te res#!ti#n $r#visi#ns, i& n#t %ha!!en+ed and &#nd t# be n%#ns%i#nab!e >as ha$$ened in

!ragg v Linden esearch Inc# are inade-ate and nsitab!e' 7rtherm#re, the ma#rity #& .UAs are

n#t read $r#bab!y be%ase #& their !e+a!ese and !en+th' Game 4tati#ns A$ri! 7##! !ast year sh#wed

st h#w many sers d# n#t read .UAs'2=

On t#$ #& this, re+ard!ess #& what .UAs say ab#t $r#$erty ri+hts and RM(, sers are en+a+in+ in

s%h a%tivities anyway' (he deve!#$ers may state in their %#ntra%ta! d#%mentati#n that s%h a%tivity

is $r#hibited bt &ew, i& any deve!#$ers are takin+ a%ti#n t# $revent it' Users are %ha!!en+in+ the .UA

stan%e that they have n# ri+hts' (his is %!ear!y s#methin+ that deve!#$ers are nsre #&, deve!#$ers

re-ire sers t# waive their ri+hts, whi%h e)$ress!y s++ests that deve!#$ers re%#+nise sers have

ri+hts in $r#$erty; they st d# n#t want them t# be ab!e t# se s%h ri+hts' (he .UAs are !a++in+

behind rea!ity'

24 OU(HA" Dews, @D#b#dy Reads (erms and #nditi#ns5 *ts O&&i%ia! >1I A$ri! 2010? Lhtt$5//www'#tH

!aw'%#m/$a+eH10I2IN a%%essed 20 A$ri! 2010'

Pa+e %' #& %&



(he .UAs need re%#nsiderin+; as d#es the interHre!ian%e #& %#ntra%t and %#$yri+ht !aw, neither #&

whi%h is $er&e%t!y sited t# $r#te%tin+ sers virta! $r#$erty ri+hts in virta! envir#nments' *t is time &#r

a di+ita! s#!ti#n t# a di+ita! w#r!d $r#b!em, and that $r#b!em is n#t +#in+ away'

Pa+e %& #& %&

an exploration of eulaw in virtual worlds and mmorpgs: the problem of property (gregynog paper...

Documents