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Making the Case That Virtual Property Is a Bad Idea

pacergh writes "Many legal commentaries on virtual property argue that it should exist. Others argue why it can exist. None seem to explicitly spell out what virtual property will look like or how it will affect online worlds. Lost in the technology love-fest are the problems virtual property might bring. The Virtual Property Problem lays out a model for what virtual property might look like and then applies it to various scenarios. This highlights the problems of carving virtual property out of a game developer's rights in his creation. From the abstract: '"Virtual property" is a solution looking for a problem.' The article explains the 'failure of property rights to benefit the users, developers, and virtual resources of virtual worlds.'"

9 of 184 comments (clear)

  1. It's Already Legally Governed, Drop It by eldavojohn · · Score: 5, Insightful
    Whether or not you 'own' anything in a game or on a server is already defined on a per game or site basis. Slashdot says I own my comments. Star Wars Galaxies' Terms of Service says Sony owns my items and characters. I have an account but I don't 'own' the virtual things that Sony puts in the game.

    The paper starts out with two real world analogies:

    Imagine owning Fenway Park. You sell tickets to Red Sox games. These tickets allocate seats in Fenway to individual spectators. Some of these tickets are sold by the entire season â" guaranteeing the same seat to the buyer for each game of the season.
    Season ticket holders are able to renew their purchase each year. Some have done so for years and years and years. Others have had their tickets passed down amongst family members. The tickets once owned by a grandfather are now owned by the grandson.
    These season ticket holders have put tremendous time and money into being able to sit in these same seats each year for each game. Should these fans be granted a property right in their seats?

    If the people who sold them to you signed a contract saying you were building some sort of equity by buying those seats year after year, then you have that. That's not the case and they could probably drop your right to them for next year when they decide to resell everything in a lottery or auction. Tough luck for you if they get greedy. If you don't like it, stop buying Fenway Park tickets. Americans love to have a sense of undeserved entitlement and this is no different. Next analogy:

    Now imagine living near a city park. You and a number of residents have taken it upon yourselves to help beautify the park. You plant grass, replenish flower gardens, and repair jungle gyms. The park is now a jewel in your city because of your effort.
    The city, however, has decided to sell the land to a property developer. Despite your wishes, and the wishes of your friends who helped beautify the park, there is nothing you can do to stop the sale. Should you have a property right in the park you spent so much time restoring?

    Again, you don't have anything in writing so you're out of luck. If you didn't realize what you were doing to begin with, you're a moron. You didn't own the park in the first place and sprucing it up doesn't give you any ownership of it. Cleaning my neighbor's yard doesn't entitle me to it; cleaning public property doesn't entitle you to it. Get a petition or run for election to change things. You don't own it because you cleaned it. Unfortunate how things played out but there it is.

    In World of Warcraft, I feel I 'own' Ampere on Thunderlord server but Blizzard's Terms of Use sets me straight:

    Ownership. All rights and title in and to the Service (including without limitation any user accounts, titles, computer code, themes, objects, characters, character names, stories, dialogue, catch phrases, locations, concepts, artwork, animations, sounds, musical compositions, audio-visual effects, methods of operation, moral rights, any related documentation, "applets" incorporated into the Game Client, transcripts of the chat rooms, character profile information, recordings of games played using the Game Client, and the Game Client and server software) are owned by Blizzard or its licensors. The Game and the Service are protected by United States and international laws, and may contain certain licensed materials in which Blizzard's licensors may enforce their rights in the event of any violation of this Agreement.

    (emphasis mine) I know I feel the right to him but Blizzard owns it. This has always been laid out for me and this paper is pointless in arguing for virtual property rights or against them. If you own them, they will say (like Slashdot). If you don't own them and you want to, find another game or site. I don't understand how the paper men

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    My work here is dung.
    1. Re:It's Already Legally Governed, Drop It by genner · · Score: 4, Informative

      Slashdot says I own my comments. Star Wars Galaxies' Terms of Service says Sony owns my items and characters.

      Personally, I find the entire concept of someone saying they own your stuff to be strange. Or, indeed, someone else saying they don't own your stuff.

      It's called a rental. Why do you think you have to send them money on a monthly basis.

    2. Re:It's Already Legally Governed, Drop It by 2obvious4u · · Score: 4, Insightful
      Actually... There is something called "squatters rights" or Squatting. So in the case of the residents taking care of the park for years, they would have a legal claim of ownership, at least in some states. There are also property laws in regards to "right of way" or Easement.

      The important quote from the article:

      In common law, through the legally recognized concept of adverse possession, a squatter can become a bona fide owner of property without compensation to the owner. Adverse possession is the process by which one acquires the title to a piece of land by occupying it for the number of years necessary, dictated differently by each state. A necessary component of this transfer of ownership requires that the landowner is aware of the land occupation and does nothing to put an end to it. If the land use by the new occupant goes unchecked for the said number of years, the new occupant can claim legal rights to the title of the land. The occupant must show that the "possession is actual, open, notorious, exclusive, hostile, under cover of claim or right, and continuous and uninterrupted for the statutory period."[53]As Erin Wiegand notes, the most difficult part of claiming adverse possession on the part of squatters is the continuous part. Squatting is a very transient lifestyle and many are evicted on a frequent basis. [54] In an article regarding recent foreclosures in the United States, a current squatter in Miami stated of her housing, "It's a beautiful castle and it's temporary for me, if I can be here twenty-four hours, I'm thankful."[55] Thus, while adverse possession allows for the legality of a squatter's situation, it is not easy to win a case of adverse possession.

  2. It's existed for a long time by genner · · Score: 3, Insightful

    All software everywhere is virtual property. All databases are virtual property. All the information on a database is virtual property. Your WOW charatcer is an entry in a database. It belongs to someone. This is not a new idea. There's just a lot of argueing over who owns what.

    1. Re:It's existed for a long time by Mad+Merlin · · Score: 4, Insightful

      Your bank account's balance is an entry in a database.

  3. It's not a failure of property rights by MikeRT · · Score: 4, Insightful

    It's that traditional property rights law and jurisprudence is overkill. The companies that run these services are more than competent at adjudicating disputes between users, and should be the ones doing it since the "goods and services" neither really leave their company property, nor can exist outside of their property/products.

    One of the reasons the law is so fubared is because everyone wants everything laid out in advance, in exacting detail. Well, between that and the unwillingness to accept the arbitration of mediators, elders, family, neighbors, etc. is why society is so litigious. It is now de rigueur to immediately start lawyering up because the only authority that most people will truly accept is the government and its courts.

  4. Virtual Property is an old concept by popo · · Score: 4, Insightful

    Stocks, Pension plans, Intellectual property rights, Bank accounts -- all of these things are virtual.

    We can try to pretend that they represent something tangible -- but that tangible thing is only a piece of paper which in turn, represents the intangible.

    When we talk about "virtual property" today, we're talking about something very similar: a right or access to something intangible which you control.

    This is a very old concept. Some might say, "yes, but this property has no bearing on the 'real' world". But this is a shortsighted argument, and one that any insightful person can see will become increasingly blurry with time.

    The only thing that makes "in game" property different is that the "right" or "access" exists within a framework and/or platform which in turn is the intellectual property of another/larger entity.

    But virtual property has always been a "good" idea, and it isn't anything new.

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    ------ The best brain training is now totally free : )
  5. Why Virtual Property is a bad idea by Locke2005 · · Score: 3, Informative

    Any time you have good that is infinitely reproducible at negligible cost, it inevitably leads to a bubble, followed by a meltdown. The global economic meltdown just demonstrated that this principle was true for Credit Default Swaps; it was just as true for the Tulip Bubble and Internet Bubble. Any attempt to monetize virtual property will inevitably result in this same boom/bust cycle. That's good if your one of the first to cash out, but very bad if you wait until later in the cycle...

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    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  6. Wait, stock is real property by JSBiff · · Score: 4, Insightful

    When you buy stock in a company, as a stock owner, you are a partial owner of all land, factories, office buildings (and any other facilities owned by the corporation), furniture, equipment (vehicles, manufacturing machines, etc) that company owns. All that stuff is quite tangible. I can go touch a building, and if I own stock in the company that owns the building, then I (in part), own that building.

    As to your main point, virtual property in the 'game world' sense is different. How? You might theoretically 'own' a particular instance of a building in a game, but you most likely do not own the artwork which represents that building (models, textures, shaders, etc), nor the game server in whose memory it resides, nor even the client running on your machine (remember kids, you *license* software copies, you don't *own* software unless you wrote it or payed someone else to right it for you as an employee or contract work-for-hire and have the paperwork to document that fact).

    I have a hard time saying you own *anything* if everyone else owns the stuff it's made up of. That's like saying you own your house, but someone else owns the land under your house which you rent, and the materials your house was constructed from (so they could take back the 'materials' any time they wanted).

    Do you really own your house if someone else owns the land and materials?