The question of whether video gamers acquire real-world legal rights for their in-game property has spilled over into the US Southern District Court of Florida. A longtime player of World of Warcraft commenced a class action lawsuit against Internet Gaming Entertainment, Ltd. (IGE), claiming IGE breached the World of Warcraft terms of use and End User License Agreement (EULA). He accuses IGE of "gold farming" — it allegedly pays workers in developing counties to amass currency in the game, which it then sells to other users for real money. In January, IGE filed an answer to the suit, denying the allegations. The action has yet to be certified.
The player is upset with IGE, asserting that its actions negatively affect the gameplay by devaluing currency, putting players who do not infringe the EULA at a competitive disadvantage and reducing the enjoyment of playing the game. In his claim, he accuses IGE of a host of contractual and tortuous ills from breach of third-party beneficiary contract and violation of the US Computer Fraud and Abuse Act to trespass to chattel.
The player bases his allegations on his assertion that the game "has a property system with all the familiar real-world features, such as exclusive ownership, persistence of rights and a currency to support trade."
McCarthy Tétrault Notes:
If this case proceeds, it would present an opportunity for the courts to rule on the nature of virtual property compared to real-life rights. Such a decision will have important implications for individual users, as well as for companies that wish to promote themselves and their wares in an emerging medium.
Currently, hundreds of companies, including adidas, Reuters, L'Oréal, Dell, IBM and Toyota, have created presences in virtual worlds such as Second Life, where they can promote their company and sell virtual wares to in-game users, as well as sell real-world products to in-game users for purchase.
Linden Labs, the creator of Second Life, has notably recognized the right of Second Life users to "retain full intellectual property protection for the digital content they create in Second Life." It has gone so far as to respond affirmatively to takedown notices under the US Digital Millennium Copyright Act.
At the same time, in-game creations such as the "CopyBot" have allowed users to make unlimited, free copies of property theoretically covered by the same intellectual property rights that cover real life.
While there have been a number of settlements and consent judgments in cases involving copyright infringement, neither Canada nor the US has had a ruling deciding the nature of virtual rights compared to real-life rights. Given the growing popularity of virtual worlds, the competing interests at stake and the amount of money involved, we expect to see an increase in litigation in this area in the future.
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