Virtual PropertyIntroductory Scenario

Cindy Creator became a resident of Second Life® through joining Second Life ® and creating an avatar. She became a premium member and purchased land in Second Life ®. Her passion is learning all she can about Germany during the years 1915-1950 and passing that on to others.

On her island, she created a themed community—a game that replicated Nazi Germany in detail. Although she had visited Auschwitz-Birkenau one time, she obtained most of the information for her game and the models from news reports, books, and museums such as the Munich City Museum and the Jewish Museum Berlin. Cindy believed that lessons learned in Germany could be useful for all people. Thus, in her game, Cindy requires that visitors take on the roles of various participants. The roles, which are randomly assigned when avatars visit the island, included Jewish citizens, Nazi guards, and various government officials. Each visitor is given a description of the role and the actions in which the visitor must participate in order to authentically perform the role. Cindy provides period costumes for avatars that enter the game.

Virtual PropertyIntroductory Scenario

After visitors complete their portion of the game, they are escorted to a store that sells paraphernalia related to those years, including Nazi paraphernalia. Visitors can purchase replicas of Nazi uniforms, flags and other items. Some visitors are unhappy that they were assigned roles. Other visitors e-mailed their friends to let them know what certain avatars did when they acted as Nazi guards.

What potential issues arise in this scenario?

Issues-Introductory Scenario Contract

Between Cindy and Linden Lab ® (owners of Second Life ®)

Between Cindy and visitors Intellectual Property issues (fact based vs.

property created by someone else) Newspapers and books None for her direct photos International IP treaties Protection of her IP (e.g. game itself, buildings, clothing,

instructions for each role) Tort

Defamation (perhaps those who e-mailed regarding roles) Intentional Infliction of Emotional Distress

Any others?

Defining "virtual world" Defined: It is a computer program with

several key characteristics Interactivity-the program can be accessed

by many users at the same time from many different locations using a communication medium (e.g. the internet)

"Physical" environment-users access the environment through, what appears on the computer screens as a physical environment

Persistence-the environment exists and events occur after individual users have left the virtual world

Examples: Second Life® is one of many virtual worlds.

Defining property rights Ownership: bundle of rights Limitations on ownership

Bundle of rights

Temporary transfer

of possession

Temporary transfer of all rights

Permanent transfer of all rights

Defining property rights (cont.)

Constitutional issues & government regulation Freedom of

expression, Freedom of speech, Freedom of

association

Daily SummaryLast Close Date 2009-07-26

Best buying rate: L$259 / US$1.00

Best selling rate: L$269 / US$1.00

Last trade: L$269 / US$1.00

Last close: L$259 / US$1.00

Change: +L$10 / US$1.00

Today's volume: L$50,692,190

Today's open: L$260 / US$1.00

Today's high: L$269 / US$1.00

Today's low: L$259 / US$1.00

Today's average: L$262.3720 / US$1.00

Source of Statistics: Secondlife.com

Real and Personal Property

Real Property: land things

attached to land

buildings vegetation on

the land Airspace above

the land and minerals below

Personal Property tangible and intangible movable “goods” as defined by

Article 2 of the Uniform Commercial Code

Virtual property, e.g. URLs

Gamers’ property Second Life® vs.

Gamers’ property

Creating Virtual Property Rights

Contract-End User Licensing Agreements (EULA)

Adhesion Contract

Creating Virtual Property Rights (cont)

Balancing types of individual liberties

Right to create (virtual

environment creators) Right to play (virtual

environment users)

Right to modify environment during play (virtual environment creators

and users)

Additional Legal Issues Infringement on intellectual

property rights Tort Liability

Defamation Fraud and Misrepresentation Intentional Infliction of Emotional

Distress

Additional Legal Issues p. 2

Criminal Liability Breach of Contract

Violation of Terms of Service or End User Licensing Agreements

Grey market of buying and selling virtual items

Additional Legal Issues p. 3 Dispute Resolution

Method and location defined by the End User Licensing Agreement

Created by Users Informal system, e.g. other users will not

interact with that avatars Formal system, e.g. Second Life and its

Metaverse Republic organization Real world dispute resolution:

arbitration or the court system

Additional Legal Issues p. 4 Jurisdiction and conflict of laws International law-Issues relating to

property ownership (and taxation, e.g. EU’s VAT http://secondlife.com/corporate/vat.php)

Escheat & Inheritance Co-ownership of property, i.e. land on Second

Life ® (tenants in common) Contract-End User Licensing Agreement Terms Tax implications

Web 2.0 Tools and HR Implications

Social Network

Website where individuals enter comments and the comments are displayed in reverse chronological order

Wiki Website where visitors can add, remove and edit content

Blog Website where individuals can connect with each other and interact

Match the term on the left with one of the descriptions on the right.

What is Web 2.0? Basic web

programs are “static”, e.g. web page where a user uploads content and other users view that content but cannot alter or interact with it

Web 2.0 programs are interactive, e.g. where users can add content and interact with the content to change it or where the program can personalize the web experience to a particular user’s tastes. Examples include

Google Maps, a directory Delicious, a bookmarking

site Blogs, web logs where many

users can alter content Wiki, editable web pages,

such as Wikipedia Social Networking sites:

Facebook, Twitter, LinkedIn

Social Networking in Plain English http://www.youtube.com/watch?v=6a_KF7TYKVc&feature=PlayList&p=9A8244EE1E566988&playnext=1&playnext_from=PL&index=23

Uses of Social Networking/Web 2.0

Why would an employer use them?

Work with customers Keep in touch with

customers Coordinate work

among employees Advertise to find

new customers Investigate

prospective employees

Monitor current employees

Why would an employer prohibit their use? Reduced

productivity Strain on resources Potential Legal

Liability for information stated on the site

Privacy ConcernsDigital natives (those who grew up using the

internet) view the internet as a way to

maintain connections and create their

identities for “approved” family and

friends; their space

Source: A (My)Space of One’s Own: On Privacy and Online Social Networks, Patrician Abril

Digital immigrants (those who migrated to

use the internet) view the internet as a way to

decide which information to reveal and which to

keep private; information is kept private by NOT

revealing it on the internet

Uses of SNS in the workplace Screening job applicants

Statistics on using SNS to Screen Job Applicants (The Newest Way to Screen Job Applicants: A Social Networker’s Nightmare, Brandenburg)

10-12% of employers use SNS to do background checks on applicants

Many employers do not use SNS or review online postings

40% of employers are undecided whether to use information on SNS and online postings

Uses of SNS in the workplace- Effects on Job applicants

Employers have rejected applicants because: “41% - content posted about alcohol or drug use 40% - “inappropriate of provocative” pictures 29% - candidate appeared to have poor

communications skills 28% - candidate bad-mouthed their previous company

or fellow employee 27% - candidate lied about qualifications 22% - discriminatory comments related to race,

gender, religion, etc. 22% - candidate’s screen name was unprofessional 21% - candidate was linked to criminal behavior 19% - candidate shared confidential information from

previous employers”New Study Shows Increase in Online Applicant Screening, Molly DiBianca, http://www.delawareemploymentlawblog.com/2008/09/new_study_shows_increase_in_on.html

Sample Legal Issues from Using SNS (Discrimination)

Eloise, the HR Manager knows Vang went to the same school as several

applicants and asks Vang to check the applicants’ Facebook pages. Vang

finds "party pictures” of John, Xavier, and Josefina. Vang reported that she was especially disturbed by Josefina’s

picture – and wants to refuse to her for an interview for that reason. You

represent the employer. Any recommendations?

Sample Legal Issues from Using SNS (privacy)

Sam, a manager, looked at Julio’s MySpace page and learned that Julio was a

member of a gay rights group. Sam fired Julio when he arrived late for work two weeks after Sam’s discovery. Julio

sued arguing that Sam fired him because of Sam’s presumption about

Julio’s sexual orientation. You represent the employer. Any recommendations?

Sample Legal Issues from Using SNS (SCA)

Selena has a website that is critical of her employer. She requires usernames and passwords for access. She includes a

statement that users must keep information they read in that site

confidential. Don, her manager finds out about site, gains access from other

employees (who were authorized users) and fired Selena for the comments. Has

Don violated the SCA? (Konop v. Hawaiian Airlines )

Sample Legal Issues from Using SNS (Tort Liability)

Henry is upset that his manager did not give him a raise, so he created a new section of his MySpace page

where he posted derogatory comments about his manager and some of his co-workers. Does the

manager have any recourse? What about the employer?

Violating a SNS Terms of Service

A manager is reviewing resumes and asks a co-worker to use her Facebook account to look up the

Facebook pages of 3 finalists. The employee creates an account and

pretends to have attended the schools of the finalists to access

their Facebook accounts. Any recommendations?

Twitter: Additional Legal Issues

Brevity of communication can lead to more potential misunderstandings

Confidentiality can be an issue for sensitive communications

Agency law could lead to representations on any of these sites being representative of the company

Recommendations Preventative Approaches

Develop a clear policy relating to on the job uses of SNS Consider blocking some sites

Tips On Using SNS and Online Sources of Information Train managers so they do not use the information learned from

the site in a discriminatory manner or otherwise prohibited by law Document searches and do consistently for all, not just for some Determine whether the information acquired is truly relevant-that

is, whether it is job related Use only sites that are readily accessible to the public; Do not create a false alias to access the site; Do not provide any false information to gain access to the site Advise applicants/employees about using social networking sites Encourage their use to highlight accomplishments; ask themselves

whether they’d want their mother to see their site

Adapted from: Today's BLR Teleconference On Hidden Risks In Using Social Networking Internet Sites To Conduct Background Checks by Anthony Zaller and Employers Using

Facebook for Background Checking: Is It Legal? By George Lenard,