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eBay Delisting All Auctions for Virtual Property

The growing popularity of Massively Multiplayer games has brought the issue of ownership rights in virtual worlds, and the appropriateness of what is called 'real money transfer' (RMT) into an increasingly public light. The success of the company IGE, as well as the launch of Sony Online Entertainment's 'Station Exchange' service would seem to indicate that RMT is now an acceptable part of Massive gaming. The well-known auction site eBay has recently made a policy decision that may throw these assumptions into a different light. Following up on a rumour that's been going around I spoke today with a media representative for the company, who confirmed that eBay is now delisting all auctions for 'virtual artifacts' from the site. This includes currency, items, and accounts/characters; not even the 'neopoints' used in the popular Neopets service is exempt from this decision. Read on below for the company's rationale for this decision, and a few words on the impact this could have on future RMT sales. Mr. Hani Durzy, speaking for eBay, explained that the decision to pull these items was due to the 'legal complexities' surrounding virtual property. "For the overall health of the marketplace" the company felt that the proper course of action, after considerable contemplation, was to ban the sale of these items outright. While he couldn't give me a specific date when the delistings began, he estimated that they've been coming down for about a month or so. Mr. Durzy pointed out that in reality, the company is just now following through with a pre-existing policy, as opposed to creating a new one. The policy on digitally delivered goods states: "The seller must be the owner of the underlying intellectual property, or authorized to distribute it by the intellectual property owner." Given the nebulous nature of ownership in online games, eBay has decided the prudent decision is to remove the possibility for players to sell what might be the IP of other parties via their service. Mr. Durzy made it a point to say that initial listings of virtual property would not have punitive actions. Their assumption, he said, is that most users break with policies because they're unaware of them, rather than maliciously. Initial infractions will result in a delisting of items, and an attempt to educate the user on the policy. Persistent disregard for the policies, of course, will result in a removal of the seller's account.

We've spoken before on the possibility of taxation of virtual goods in the U.S. and abroad, as well as the economic impact these sales can have. With the removal of a very popular, very public source of virtual currency and goods from the market, what does this mean for the future of RMT? Will small businessmen who previously worked via eBay now turn to larger independent sites like IGE? Given that eBay is ipso facto declaring virtual goods to be the property of the game makers and not the players who 'earn' them, what does this mean for the future of virtual rights in general?

4 of 324 comments (clear)

  1. Re:Dangerous Precedent. How about CD sales? by jonnythan · · Score: 3, Informative

    You must be the owner of the intellectual property *if you are selling intellectual property*.

    If you're selling a physical item, you must be the owner of the physical item.

    You don't own your WoW character. You own your CDs. You can sell your CDs but not your WoW character.

    Done.

  2. Attention online item and gold buyers! by DogAlmity · · Score: 3, Informative
    Yes, you, you people with more money than you know what to do with!

    You DON'T need to spend hundreds or thousands of dollars on nothing!

    Here's a link to website with a huge listing of charitable organizations. I promise you that giving 2 grand to help the needy or cure a disease will make you feel better than spending 2 grand on a shiny new level 70 rogue.

    http://www.charitynavigator.org/

    Comprende?

  3. Re:How about Chinese Counterfeit goods? by Barny · · Score: 4, Informative

    there's no reason why I shouldn't be allowed to sell my character
    One thing they point out is that its not YOUR CHARACTER, its never your character, you are paying your little fee each month to use their character in their game.
    --
    ...
    /me sighs
  4. Re:Just Sell the Time by x_MeRLiN_x · · Score: 3, Informative
    Being an ex-Neopets player, that is nothing new. eBay doesn't permit anything that copyright holders can rightfully object to and has routinely removed auctions selling Neopoints for years.

    eBay policy: http://pages.ebay.co.uk/vero/
    Neopets ToS: http://neopets.com/terms.phtml

    #5
    * requests for money by using your Neopets, Neopoints or any other Neopets property on third party sites or your personal websites (including Ebay) In my opinion, all this really means is that more will be sold on less well-known sites with an arguably higher proliferation of fraud.