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Patent Arcade

In the business of video games, intellectual property protection is critical to success, and Patents, Copyrights, and Trademarks are the bricks with which your IP portfolio is built. The Patent Arcade is the web's primary resource for video game IP law, news, cases, and commentary. Editor-in-Chief: Ross Dannenberg, Esq.

News: Disney to shutter Virtual Magic Kingdom

Posted by Ross Dannenberg (Gamertag: Aviator) on Tuesday, April 15, 2008.

Disney has announced that its Virtual Magic Kingdom will close May 21, 2008,... for good. The VMK is no longer accepting new users, either. Disney's VMK was launched in 2005 as a promotional tool, and turned out to be much more. About 15,000 people per day still log in and, chat, play, and explore in the VMK. The news has come as quite a shock to some, and over 10,000 people have even signed a petition asking Disney to keep it open. The shuttering of VMK, and the public response, demonstrate that even though virtual worlds and MMOGs are governed by end-user license agreements (EULAs) or Terms of Service (ToS), players inherently create a vested interest in the game, irrespective of the contractual nature of the player-provider relationship. Players make friends, create bonds, develop groups, and in some sense even come to rely on the virtual world being there the next day. So for those trying to get Disney to keep it open, I wish you luck. And when it comes to the Mouse, you'll need it!

Read More: Article 1 - Article 2

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Case: Eros v. Simon (SETTLED 2007) - Second Life

Posted by Ross Dannenberg (Gamertag: Aviator) on Monday, April 07, 2008.

Somehow this well reported case got overlooked here at the Patent Arcade, and that appears to be because I thought I'd already written about it. In any event, it now gets its own post...

On October 24, 2007, six content owners in Second Life sued Thomas Simon, aka Rase Kenzo, for infringing their copyrights in various online goods. Also included in the complaint were counts for unfair competition and false description of origin, conspiracy, and counterfeiting. The goods included clothing and scripted furniture (aka, sex beds), among other things. After only two months it appears that Mr. Simon saw the light and the plaintiffs proved their point--the case settled in December, 2007, for about $525, and an agreement by Mr. Simon to cease his questionable activities.

At the very least this case is important because it demonstrates the seriousness that many Second Life content creators give to their businesses, treating their intellectual property just as any other business would. The stakes will only get higher as virtual worlds such as Second Life get bigger, and the players have even more money at stake.

Documents:

Complaint-07_10_24_eros_et_al_v_simon_complaint.pdf

Settlement-ecf.nyed.uscourts.gov_cgi-bin_show_temp.pdf

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News: IBM to host private Second Life regions

Posted by Ross Dannenberg (Gamertag: Aviator) on Wednesday, April 02, 2008.

IBM said today that it would become the first company to host private regions of the virtual world Second Life on its own computer servers.

The project is in testing and will go live within several weeks. This appears to be part of "the Grid," which marks a new focus by Second Life's parent company, Linden Lab, on providing software and services to corporate customers who want to use the virtual world for collaboration and teleconferencing with more assurances of privacy and security than is offered by Linden Labs.

Read more here.

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Visit the Patent Arcade in Second Life

Posted by Ross Dannenberg (Gamertag: Aviator) on Sunday, March 30, 2008.

I now have a presence in Second Life, on the PG (i.e., ok for all ages) region of Pumori. My XboxLIVE gamertage is Aviator, so naturally keeping with the theme my SL avatar is Aviator Kidd. Our Second Life Outpost is lakeside in Pumori. Stop by and say hello.

Second Life URL (SLURL)
(if you have Second Life installed, you can click the link to teleport to our outpost)

Here is the SLURL if you want the details: http://slurl.com/secondlife/Pumori/144/111/31

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News: Second Life creates Brand Center to protect its trademarks

Posted by Ross Dannenberg (Gamertag: Aviator) on Tuesday, March 25, 2008.

As Second Life matures, they are taking some fairly customary steps, one of which is to take a more proactive role to protect their own intellectual property. In this vein, Linden Labs has created the Second Life Brand Center, which details the proper and improper use of Linden Labs trademarks. In addition, Linden Labs has created the "inSL" mark for users to use under certain conditions to signify their presence in Second Life. The Brand Center is online here.

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Case Update: MDY v Blizzard - Summary Judgment Motions

Posted by Ross Dannenberg (Gamertag: Aviator) on Monday, March 24, 2008.

Well it looks like this case has not settled yet, and the parties have filed their summary judgment motions. MDY's Motion can be viewed here. Blizzard's filings are here, here, and here.

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News: MMOGs on the rise

Posted by Ross Dannenberg (Gamertag: Aviator) on Thursday, January 03, 2008.

The trend continues, and MMOGs are getting even more popular. Here are a couple recent articles that you might find of interest:

From WIRED, this article discusses three new MMOGs being released in 2008 that have potential to be huge.

From the NY Times, this article discusses the popularity of MMOGs among kids.

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News: Chinese lawsuit over virtual goods



As reported by Virtually Blind, Shanda, developer of MMORPG The World of Legend, has been ordered to pay 5,000 Yuan (US $679) and apologize to a gamer for taking away his virtual tools, reports Pacific Epoch. The gamer discovered six virtual items worth more than 1,500 Yuan (US $204) missing from his game account on November 22, 2006 (perhaps the Sword of 1,000 Truths), and contacted Shanda regarding the disappearance. Shanda said that the company had taken the items in accordance with a police investigation regarding the sale of stolen virtual items. But Shanda failed to follow police instruction and return the items after the investigation ended.

Read more here.

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News: Second Life CTO resigns

Posted by Ross Dannenberg (Gamertag: Aviator) on Thursday, December 13, 2007.

Sorry I've been radio silent for a while. Life has been busy, you know how it goes...

In any event, it appears that Cory Ondrejka, employee No. 4 at San Francisco-based Linden Lab, which owns Second Life, quit Tuesday and will depart at the end of the year. Ondrejka spearheaded the company's decision to allow users to retain intellectual property rights to their creations. That's encouraged a thriving e-commerce market where users spend real dollars to buy virtual real estate, clothes, cars and other items. So it will be interesting to see where the company goes next.

Read more here.

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News: Second Life IP theft lawsuit

Posted by Ross Dannenberg (Gamertag: Aviator) on Thursday, November 01, 2007.

More Second Life news: As reported in the New York Post, a half-dozen entrepreneurs are suing a Queens man, charging him with counterfeiting and selling versions of their products. Here's the catch: The products aren't real, and the alleged crimes took place in the virtual world of Second Life on the Web.

Read full story here.

We'll keep monitoring this case and let you know as we learn more.

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News: Change in Second Life ownership policy???

Posted by Ross Dannenberg (Gamertag: Aviator) on Monday, October 29, 2007.

As originally reported on Terra Nova, Linden Labs appears to have made a potentially significant change to the wording on its home page. The home page used to read:

Second Life is a 3D online digital world imagined, created and owned by its residents

But now it reads:

Second Life is a 3D online digital world imagined and created by its residents


The post on Terra Nova has an interesting string of comments. Check it out. It will be interesting to see if anything comes of this.

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Second Life ToS: Leave your patents at home

Posted by Ross Dannenberg (Gamertag: Aviator) on Friday, September 28, 2007.

Ok, I've spent the better part of two evenings finishing the campaign mode in Halo 3, so it's about time to come out of my self-induced Halo 3 fog. A colleague of mine and I were discussing about a month or so ago the fact that Linden Lab's terms of service for Second Life are very prohibitive of patents and patent rights being enforced by SL residents. Well there is a fairly comprehensive post on Virtually Blind regarding the topic that I feel compelled to link to. It's an interesting read. Enjoy.

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Case Update: MDY Industries, LLC v. Blizzard Entertainment, Inc. et al

Posted by Ross Dannenberg (Gamertag: Aviator) on Monday, August 27, 2007.

MDY Industries, LLC v. Blizzard Entertainment, Inc. et al.

United States District Court, District of Arizona

Case No. 2:2006cv02555, Filed October 25, 2006

On October 25, 2006, MDY Industries, LLC (“MDY”) filed a declaratory judgment action against Blizzard Entertainment, Inc. (“Blizzard”) and Vivendi, SA (“Vivendi”), Blizzard’s parent company, in the U.S. District Court in Arizona seeking, among other things, a decree from the court that MDY has not violated any of Blizzard’s intellectual property rights relating to the “World of Warcraft” video game.

MDY sells a software application called “WoW Glider” (also known as “Glider”) that essentially automates game play in Blizzard’s World of Warcraft. This automation, however, violates Blizzard’s Terms of Service for World of Warcraft, a fact that MDY actually admits in the “Frequently Asked Questions” portion of the Glider website. See http://mmoglider.com/FAQ.aspx#G3. In addition to allowing gamers to feel like lawless rebels, Glider appeals to World of Warcraft players because World of Warcraft is a massively multiplayer online role-playing game (MMORPG) in which players must spend a great deal of time playing in order to “level up” their characters. Although it would seem strange that gamers would want to find a way to play less, the leveling in World of Warcraft is really only a part of the game, and a tedious part at that. Indeed, once a player reaches the maximum level, he or she can begin playing the “end game” content that is typically more challenging and dynamic than the other game content. Moreover, in addition to automating leveling, Glider also automates some of the other more tedious tasks in World of Warcraft, such as “grinding” reputation and “farming” gold, by automatically and repeatedly killing certain computer-controlled enemies. Glider accomplishes this automation by simulating the keystrokes and mouse movement that would normally be the control input from the player. Thus, instead of playing World of Warcraft for hours to level, grind, or farm, a player can configure Glider to perform whatever tasks he or she desires, and then leave Glider to play accordingly. As Blizzard sees it, however, Glider allows players to cheat by gaining an unfair advantage over others, thus detracting from everyone else’s gaming experience. Unfortunately for Blizzard, Glider was more than a mere demon that could be baninshed, and so they resorted to legal action to stop this alleged cheating.

According to MDY’s complaint, representatives for Blizzard and Vivendi appeared unannounced, (as if by magic?), at the private residence of Michael Donnelly, the sole member of MDY according to Blizzard, on the morning of October 25, 2006. At this confrontation, the Blizzard and Vivendi representatives allegedly accused MDY of copyright infringement, Digital Millennium Copyright Act (“DMCA”) violations, and interference with the contractual relationships between Blizzard and World of Warcraft users. The Blizzard and Vivendi representatives also presented Donnelly with a complaint against him and MDY that included all of these charges, and threatened to file this complaint in a federal court in California if he did not comply with their demands. In imminent apprehension of being sued, MDY brought this declaratory judgment action against Blizzard and Vivendi the same day.

Notwithstanding whether Glider’s violation of the Terms of Service for World of Warcraft is interference with contractual relationships, the real issue in this lawsuit is whether Blizzard can prevent MDY from distributing Glider. Indeed, in February 2007, Blizzard filed an answer to MDY’s complaint in which Blizzard asserted counterclaims against MDY seeking injunctive relief and money damages. In these counterclaims, Blizzard argued that it is entitled to an injunction and money damages against MDY based on, among other things, copyright infringement, trademark infringement, and trafficking in technology designed for the purpose of circumventing copyright protection systems in violation of the DMCA. MDY filed an answer to Blizzard’s counterclaims in March 2007 in which MDY denied most of Blizzard’s accusations and raised various affirmative defenses to all of Blizzard’s counterclaims.

As of August 2007, this case is in discovery under a protective order and will remain in fact discovery until January 25, 2008. For now, World of Warcraft players can still use Glider to do their virtual dirty work (as long as they are willing to risk being banned from World of Warcraft for a Terms of Service violation, that is).

Thanks to Rajit Kapur for his assistance with the preparation of this case summary.

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News: Virtual World Awards

Posted by Ross Dannenberg (Gamertag: Aviator) on Friday, May 18, 2007.

Well it was really only a matter of time. When an industry gets large enough, we need awards to distinguish the good from the bad. MMOs and Virtual Worlds are the latest addition to the awards fray, with "live" ceremonies to be held in Second Life and Entropia Universe.

Read more here.

I guess it's true: IP begets IP.

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News: Voice in Second Life

Posted by Ross Dannenberg (Gamertag: Aviator) on Thursday, May 17, 2007.

Linden Labs recently added voice capabilities to Second Life. Their beta test went public in March, and commentary has been, for the most part, positive. Voice is a natural extension for MMO games, and introduces new IP issues that will eventually crop up, e.g., voice theft. Digital voice means you can capture someone else's voice relatively easily. Could you create a voice synthesizer based on someone else's speech patterns and tone? Just a thought. In any event, Second Life just got a whole lot more interesting for the rest of the world who doesn't already spend every waking moment as an avatar...

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FEATURE: VIDEO GAME LAWSUITS

Posted by Ross Dannenberg (Gamertag: Aviator) on Thursday, May 05, 2005.

Updated: May 16, 2008

VIDEO GAME LAWSUITS

To assist you in your research and review of the cases, this post will serve as a continuously updated index of the cases we're tracking. If you notice any that are missing, please let us know.
Don't worry, we'll get to them all... eventually.

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