1 the law of virtual worlds – operator-resident relationship dan or-hof, partner [email protected]
TRANSCRIPT
2
Marc Bragg (‘Marc Woebegone’)
LL: “An exploit to purchase land below market value.” (‘URL-hacking’)
Allegedly Accessed land auction pages
for property not yet
released for auction
=>
acquired land below cost.
Dan Or-Hof
$300 instead of $1,000
$4,000 to $6,000 investment
3
Bragg’s account terminated without warning;
ALL of Bragg’s virtual assets Dissolved;
Calls to customer service left unanswered.
Dan Or-Hof
4
May 1st, 2006
Bragg v. Linden Labs and Rosedale
Claims:
Breach of contract
Unfair trade practices
Injunction preventing Linden from denying residents the right to access Second Life (suspensions, bans, account cancellations(
Dan Or-Hof
5
Compelling arbitration clause
v.
Unconscionability:
i) Procedural
(surprise/hidden terms- adhesion)
ii) Substantive
(one sided/shocks the conscience)
Dan Or-Hof
6
“This case is about virtual property…”
Dan Or-Hof
7
Procedural unconscionability
“no reasonably available market alternatives [to defeat] a claim of adhesiveness.”
Linden buried the TOS’s arbitration provision in a lengthy paragraph under the benign heading “GENERAL PROVISIONS.”
Dan Or-Hof
8
Substantive unconscionability- jurisdiction
SL Terms of Service
חוק החוזים האחידים
)חזקת תנאי מקפח(
Arbitration only in San
Francisco and by a
certain arbitrator.
( - תנאי המתנה על הוראת 9)4דין בדבר מקום שיפוט או
זכות בלעדיתהמקנה לספק לבחירת מקום השיפוט או
הבוררות שבהם יתברר סכסוך;
( - תנאי הקובע מסירת 10)4לספק סכסוך לבוררות כאשר
מאשר השפעה גדולה יותרללקוח על קביעת הבוררים או
מקום הבוררות.
9
Substantive unconscionability - termination
SL Terms of Serviceחוק החוזים האחידים )חזקת תנאי מקפח(
Whether or not a customer has breached the Agreement is determined in Linden’s sole discretion.
תנאי המקנה לספק (2)4זכות בלתי סבירה לבטל, להשעות או לדחות את
, או לשנות את ביצוע החוזהחיוביו המהותיים לפי החוזה;
Linden reserves the right to return no money at all based on mere “suspicions of fraud” or other violations of law.
10
Substantive unconscionability - changes
SL Terms of Service חוק החוזים האחידים)חזקת תנאי מקפח(
Linden may amend this Agreement at any time in its sole discretion by posting the amended Agreement .
תנאי המקנה לספק (2)4
זכות בלתי סבירה לבטל,
להשעות או לדחות את
לשנות את ביצוע החוזה, או
לפי חיוביו המהותיים
החוזה;
11
“Linden has the right at any time for any reason or no reason to suspend or terminate your Account, terminate this Agreement, and/or refuse any and all current or future use of the Service without notice or liability to you.”
Dan Or-Hof
) תנאי הפוטר את הספק, 1(4באופן מלא או חלקי,
מאחריות שהיתה מוטלת עליו על פי דין אילולא אותו
תנאי...
12 Dan Or-Hof
13
SL changes arbitration clause
DISPUTE RESOLUTION
“If a dispute arises between you and Linden Lab,
our goal is to provide you with a neutral and cost-
effective means of resolving the dispute quickly…
Accordingly, you and Linden Lab agree to resolve
any claim or controversy at law or in equity that
arises from or relates to this Agreement or our
Service (a "Claim") in accordance with one of the
subsections below…”
Dan Or-Hof
14
Harvard Law Mock Trial
The nine-member mock jury held: 8-1 that Bragg was the owner
of the virtual property he purchased; 7-2 that Bragg’s exploit was improper,
justifying Linden Lab’s decision to take the property that he acquired using the exploit;
6-3 that Linden Lab was not justified in taking property that Bragg had acquired without using the exploit.
15
What does it mean?
What can we learn from it?
Dan Or-Hof
16
The legal system
No 3 branches!
Dan Or-Hof
17
? Is it a service or a world?
? Is it a private sphere (mall) or a public
sphere (market)?
? Is an external legal oversight sufficient? Is
it appropriate?
? Are a three branch
system/elections/rebellion on its way?
? Rules for banishment and expulsion.
Dan Or-Hof
18
Absolute control –TOS are the law
“Linden Lab has the right at any
time for any reason or no reason to
suspend or terminate your Account,
terminate this Agreement, and/or
refuse any and all current or future
use of the Service without notice or
liability to you."
Dan Or-Hof
19
Possible new legal issue:Possible new legal issue:
Can an avatar be an Can an avatar be an
independent legal entity?independent legal entity?
Dan Or-Hof
20
Assumptions
Virtual identity can be much more significant than
the physical identity;
An avatar can represent more than one natural
person (currently not in SL);
An avatar’s decision making and actions do not
necessarily represent a single person.
Dan Or-Hof
21
Suggestions / ideas
! Agent – principal / corporation
! Should avatars be given constitutional rights -
Speech, privacy, bodily integrity, equal protection,
due process, political voice?…
! Can an avatar sue? Be sued? (application of tort,
criminal and IP law)
! Can it own property?
! Can it have rights against its physical principal?
Dan Or-Hof
