Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

Why is metagaming an important issue when discussing MMORPGs? Most MMORPG designers work within a carefully designed virtual universe, precisely balanced to give every player an equal opportunity to play and enjoy the game. Metagaming can upset that balance -- or enhance the experience -- depending on foresight of the designers and the type of metagaming at issue.

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Communicating outside of a game• Phone calls? Instant messages? IP communication?• Giving away the location of another player• Disclosing the strength of enemy fortifications• Communicating across factions (e.g., WoW Horde vs. Alliance)

• Exploits • Terrain glitching• Gold/item duping

• Cheats and bots (example: WoWGlider)• Can “see” through terrain and other obstructions• Reflexes of a computer• Not subject to external “weaknesses” like other players (e.g., the need for food

and sleep; school; work)• Gold farming

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

On June 26, 2009, the Chinese Ministry of Commerce and Ministry of Culture released a joint circular prohibiting the use of virtual currency to trade in real goods and services

Go to: http://english.mofcom.gov.cn

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

Virtual ItemsScarcity (limited quantities or time or money)CollectabilityAbility to Display

User DemandforReal-MoneyTrading

• Annual market for the secondary exchange of virtual items has been estimated at over $1.8 billion worldwide

• Itembay and ItemMania sold $974 million in virtual goods in 2006

Source: www.virtualgoods.com, Virtual goods in Asia: it’s even more than you think!, April 9, 2009

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

Hernandez v. Internet Gambling Entertainment, Ltd.,US Dist Ct WD FL, 2007

Playfish, Ltd. v. Gosumall Digital Entertainment,US Dist Ct WD TX, 2009

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Regulatory Landscape in the U.S.– Financial services laws– Illegal lotteries– Auction licensing– Income taxes (third-party information reporting)– Sales tax laws– Data security standards– Privacy practices– Export control laws– Unclaimed property laws

• Other Legal Concerns:– Ownership of intellectual property– Terms of Service / EULAs

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Permit publisher-sanctioned transfer of licensed rights among users• Be clear about ownership of virtual items / user-generated content• Protect against “loss of value” claims:

– Allow for bannings, disruptions and discontinuance– Allow for active management of in-game economy, game play and

trading– Disclaim any obligation to create a market in particular virtual items– Obtain waiver of liability for any loss of value in virtual items

• Address RMT activities by parents and legal guardians of minors• Provide for fair and equitable Alternative Dispute Resolution (consider

Bragg v. Linden Research, Inc., US Dist Ct ED PA, 2006)• Prohibit disruptive / illegal conduct (e.g., gambling, money laundering, gold

farming, etc.)

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Section 230 of the Section 230 of the CDACDA– Immunity if operator Immunity if operator

did not create or did not create or develop the offending develop the offending contentcontent

• Immunity CasesImmunity Cases– Defamation (Defamation (AmazonAmazon))– Invasion of privacy Invasion of privacy

((MatchmakerMatchmaker))– Sexual assault Sexual assault

((MySpaceMySpace))• No Immunity Case No Immunity Case

– Drop-down menu Drop-down menu exception exception ((RoommatesRoommates))

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Who’s covered?Who’s covered?– Sites directed to Sites directed to

children under 13children under 13– Any site that Any site that

collects personal collects personal info from childreninfo from children

• What’s required?What’s required?– Posted privacy policyPosted privacy policy– Verifiable parental Verifiable parental

consent before consent before collecting personal collecting personal info from kidsinfo from kids

• Maine’s Super-COPPAMaine’s Super-COPPA– Prohibits “predatory Prohibits “predatory

marketing” to minorsmarketing” to minors

Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.Digital Law Conference: September 24 at 4:00 p.m. to 5:00 p.m.

• Digital harassmentDigital harassment– AnonymousAnonymous– UnsupervisedUnsupervised– InseparableInseparable

• Harmful effectsHarmful effects– Self-esteem to Self-esteem to

suicidesuicide• LegislationLegislation

– Megan Meier Megan Meier Cyberbulling Cyberbulling Prevention Act Prevention Act (Pending)(Pending)

– Empowering school Empowering school administratorsadministrators