Can Avatars Make Contracts?

edadams sends in a story about the legal questions that are starting to crop up over property disputes in virtual worlds. A lawsuit in March 2008 that stopped one Second Life user from selling a virtual product created by another user marked the beginning of a significant amount of casework for several law firms, in large part due to the way Second Life's currency interacts closely with real money. (And yes, apparently the product in that particular case was for cybersex — did you have to ask?) "As transactions grow in volume, it's inevitable that disagreements will crop up. Linden says that although it will enforce its terms of service, including its ban on violating other users' intellectual property, it can't settle most disputes for users." A lawyer for one intellectual property firm handled a case in which the co-ownership of virtual real estate had to be determined, ending with a financial settlement given to two users who helped a virtual land developer run a group of Second Life islands. As virtual worlds get more popular and their business models more directly affect real-life finances, we can expect these legal issues to become more common as well.

Comments

Cue the Second Life expert (but not a lawyer)

[Lordfly]

If you signed your name on an actual contract, you're liable for the contract. If, on the other hand, you're an idiot and sign it with your Second Life avatar (or Slashdot ID for that matter), I would imagine the contract is at least called into heavy question.

I did contract work in SL for 3 years. I always signed my name on real, mailed-over contracts. I had to do work with other contractors, though, who in a fit of privacy histrionics, refused to divulge any part of their private life to these real-world companies they were working for, and thus "signed" a "contract" inside the virtual world.

Not surprisingly, they either didn't last long doing contract work or got so heavily ostracized for their insanity they never got another call again.

In short, don't be a moron. Get a real contract, in real paper, and sign it with your real name (and make sure they do too!)

Anything else is just roleplay.

Re:Cue the Second Life expert (but not a lawyer)

[Gorm the DBA]

Be very careful about that assumption...

Many (most?) state's laws regarding prostitution require actual physical contact (or the promise of same), so, since a digital being can't perform physical contact, an agreement to "I'll let you enter commands on Second life that will show animations where your avatar appears to be fucking mine and use poseballs to enhance the animation for 30 minutes for 1000 Linden" actually *might be* valid. (assuming all the other requirements for a contract are met)

Regardless, though...the contract in question here wasn't actually *for* cybersex, it was for the creation and ownership of a digital thing *used in* Cybersex...and that sort of contract would almost certainly be enforceable, assuming all the other requirements were met.

Re:Cue the Second Life expert (but not a lawyer)

[Anonymous Coward]

The elements of a contract are mutual assent (offer, acceptance and meeting of the minds) consideration and absence of defects (such as lack of capacity or fraud). A signature is only one way of showing acceptance. Actions can also show acceptance. When you press "I accept" or something similar on an econtract, you accepted (though if someone who was not you accepted for you you could use a fraud defense assuming you can prove it was more likely than not someone else acted without your consent).

The medium through which a contract is formed does not matter. EULAS and TOS stand regardless of the electronic format. Having an avatar act as an online electronic agent for your RL self is still binding, assuming you are in control of the avatar. It is unclear what happens if you get hacked. Personally, I disagree with the trend to try to make one liable for all misuses of ones accounts, and i think if the defendant can show fraud and unauthorized use, the contract should not stand.

If avatars work in a virtual economy tied to real money, the contracts formed through avatar interaction are valid, whether you have a paper contract and real signature or not. However, given the logic of protecting yourself from a fraud defense of some sort, I can understand refusing to do business where significant amounts of money are involved unless you get confirmation of the other parties real identity. The contract can only be pure RP if no lindens are exchanged, because lindens are tied to real money. Think about the legal problems of gambling with lindens. It was arguably RP but if people won something that turned into money, various legal issues are triggered.

Not legal advice, just a few definitions and general conversation. IAMYL.

Argh . . . I run screaming away!

[MarkvW]

IAAL and the last thing--the very last thing--that I want to do in a computer game is form legally binding relationships. Today it's contracts and cybersex. Tomorrow its libel and "You wrongfully damaged the value of my avatar!"

If I get in a contract dispute in a computer game, I don't want to end up in court--I want a virtual duel with swords or pistols! I want to be able to cheat somebody in a (virtual) contract and laugh at them down the barrel of a plasma blaster when they complain.

Some MMOGs want to create a game environment that can get people sued in real life--all the while disclaiming ANY liability on their part for the social cost of such wasteful, stupid lawsuits. I'll run, screaming, away from such utter lunacy.

But, hey, its good business for lawyers . . . what the hell!

Re:Argh . . . I run screaming away!

[Anonymous Coward]

SL is not a "game", it is a virtual world. Some see it as a predecessor of a 3D Internet. Instead of websites, people have lands or stores or space where they create and display virtual goods and art. SL virtual objects can link to traditional websites where people can sell real world goods. Also, SL objects can give people information in more interesting ways than 2d websites and allow more engaging interaction and collaborations. Educators use SL (and not just for sex ed) and so do librarians. I won't bore you with the spiel on artist, band promotions and the like, but unless you enter a gaming area or create a game on your land, SL is more like a social and commercial networking site, albeit with dragons and furies.

Does seeing it as a 3d network with real commercial potential for it's users make this dispute more reasonable? Can you imagine tell Amazon that your econtract with them was part of a "game" because it took place on the computer and there cartoon like graphics and virtual pictures of goods on their website? I would like to see you challenge Amazon to some sort of virtual game duel instead of paying them cash, but somehow I don't think they will accept that.

What?

[greyhueofdoubt]

>>As virtual worlds get more popular and their business models more directly affect
>>real-life finances, we can expect these legal issues to become more common as well.

These things are becoming *more* popular? Have I been getting out *too* much?

God save us all. Pretty soon the English language will consist only of the letters l,o, R, U, s, t, and f.

-b

Avatar Contract

[Foofoobar]

This is such a dumb question and here is the scenario: say I play a businesswoman online. Now say my little brother gets ahold of my account while I'm in the bathroom and decides that I'm going to prostitute myself and gets into a binding contract. Did my avatar make the contract or my little brother THROUGH the avatar? When I get back to the keyboard is my avatar to be punished because they were 'possessed' by the spirit of my little brother?

Impossible to enforce. If there were an in game judicial system, it would be treated as temporary insanity. To which you would also NEED a judicial system for arbitration. This introduces lawyers. And now the game becomes a PVP free for all.

IANAL and not a SL person either

[Cro Magnon]

But as I see it, there should be no problem signing contracts as $AVATAR - for strictly SL (or other virtual world) activity. As soon as RL enters the picture (including RL money), I agree, use your real identity.

Re:is this really all that important?

[nine-times]

As virtual worlds get more popular and their business models more directly affect real-life finances

I think some people just take it for granted that virtual worlds will become more popular and business will become more and more active in them and even dependent on them. However, I think this remains to be seen.

Anyone seen real numbers on Second Life recently? I always thought the whole thing was a bit silly and poorly thought-out. I know a couple years ago there was a period of months were lots of people were talking about Second Life and it was even in the news, but I don't hear much about it these days. I almost wouldn't be surprised if this lawsuit was being engineered or at least promoted by Linden Lab to try to build up hype and legitimacy.

Can an avatar be held to a contract? Ok, whatever. Prosecute the avatar for fraud and throw him in Second Life prison. Yeah, we're pretending that Second Life is interesting or matters.

Yes, I know people have real money in Second Life. People have real money in online poker, too, but that doesn't make it a valid economy.

Re:I am incredulous

[Anonymous Coward]

that's because Second Life is not a GAME. It's a virtual world.

What's the difference? How can you "win" in Second Life? there's no goal or objective.

Re:I've said this every time.

[tonyreadsnews]

it's a game ... it's barely a game.

usually I let people continue to misunderstand.
Second Life, poorly worded product as it is, is more akin to a web hosting service with a built in 3D interface.

Some people make/play games, some socialize, and some conduct real business (just like they do via webpages, email, skype, webex...).