Linden Labs and Second Life have long held that all content created in the world is the sole property of the creator (or owner, once sold) and much of the early press material backed this up.  As such, thousands (millions?) of people have set up business operating in world selling clothes, buildings, and real-estate to new Second-Lifers.  However, Linden recently instituted a new licensing agreement that jeopardizes this long-held claim, and is now the subject of a Class-Action lawsuit against Linden.

But “at an unknown date ” the suit says Linden began removing references to ownership from its website and began characterizing Second Life users as having “a license to computing resources ” not actual ownership of virtual terrain. A new Second Life user contract took effect Friday. It specifies that “virtual land is available for purchase or distribution at Linden Lab s discretion” and that “Linden Lab may revoke the virtual land license at any time without notice refund or compensation.”

The plaintiffs hope this will be the landmark case in virtual rights, and proof of how the internet is pervading every aspect of our lifes.  I personally think their claims may be a bit overblown, as the actual text in the new EULA reads:

Linden Lab may revoke the Virtual Land License at any time without notice, refund or compensation in the event that: (i) Linden Lab determines that fraud, illegal conduct or any other violations of these Terms of Service or other Second Life policies is associated with the holder’s Account or Virtual Land; or (ii) the holder becomes delinquent on any of that user’s Account’s payment requirements, ceases to maintain an active Account or terminates this Agreement.

The real problem seems to be that Linden has the ability to change these terms at any time.  It’s a bit of a “slippery slope” argument, but held up through this statement only 2 paragraphs down:

You agree that Linden Lab has the right to manage, regulate, control, modify and/or eliminate such Virtual Land as it sees fit and that Linden Lab shall have no liability to you based on its exercise of such right.

What are your thoughts?

via A real-world battle over virtual-property rights — latimes.com (print version).