| In April 2009 the world's largest maker of stun | | | | range from 64 to 200 million USD -- but |
| guns ("Company 1") sued the owner of one of | | | | whatever it is, it's not small. |
| the most popular "Virtual World" web sites | | | | With the commercialization of Virtual World by |
| ("Company 2"). Company 2's web site enables | | | | real companies, concern about the protection of |
| players, called Residents, to interact with each | | | | intellectual property rights has grown. Copyright |
| other through avatars. Residents can explore, | | | | owners can protect their rights through the |
| meet other residents, socialize, participate in | | | | procedures of the Digital Millennium Copyright Act |
| individual and group activities, and create and | | | | (DMCA), which Virtual World states it will enforce. |
| trade virtual property and services with one | | | | The DMCA requires service providers upon notice |
| another, or travel throughout the world, which | | | | from copyright owners to take down and ban |
| residents refer to as the grid. In its lawsuit, | | | | repeat infringers. It is to Virtual World's benefit to |
| Company 1 claimed that Company 2 and other | | | | conform with the DMCA or otherwise it too may |
| defendants damaged Company 1's reputation and | | | | be subject to liability for its users' infringing |
| hurt its sales by allowing virtual weapons to be | | | | activities. |
| sold online under its brand name. Not only did | | | | Unfortunately, there is no such protections for |
| Company 1's complaint alleged that Company 2 | | | | trademarks. The DMCA does not apply in this |
| was infringing its trademarks but also that it was | | | | area, only the provisions of the Lanham Act, |
| damaging its reputation by selling the virtual | | | | which prohibits trademark infringement. Although |
| weaponry in the same online stores that included | | | | Virtual World could enforce trademark rights by |
| pornographic content. | | | | application of its Terms of Service, it specifically |
| The case was dismissed in May 2009, presumably | | | | states that users are responsible for complying |
| because the parties settled their dispute. | | | | with intellectual property law but has no provision, |
| Nonetheless, the lawsuit should raise concerns | | | | like that of Facebook, for reporting violations. |
| about policing trademarks in the digital world. The | | | | Apparently, however, there are violations aplenty. |
| law imposes on trademark owners the duty to | | | | One commentator observed: |
| police their trademarks. Should your trademark be | | | | "Ultimately, [Company 2] the creator of [Virtual |
| infringed and you permit the infringement to | | | | World], relies on the vigilance of SL community |
| continue without action, you may be faced with | | | | residents to monitor trademark and copyright |
| an argument that you have abandoned your | | | | abuses. Yet one boutique still sells a virtual |
| trademark. Traditionally, policing your trademarks | | | | reproduction of the entire Ikea catalog. Virtual |
| meant monitoring online and offline publications and | | | | computers with the Apple logo have been sold |
| other places where your trademark may be | | | | without Apple's permission. Residents walk the |
| infringed. Now that actual commerce is occurring | | | | streets of [Virtual World] wearing knockoff |
| in virtual communities such as Virtual World, the | | | | clothes and are solicited by black-market vendors |
| scope of policing has widened. The purported | | | | selling entire lines of counterfeit goods. [Company |
| population of this particular Virtual World is more | | | | 2] may not actively be seeking out offending |
| than 2 million although opinions differ. Nevertheless, | | | | material, but many of the infringing acts are so |
| there are a lot of people "playing the game" and | | | | rampant and blatant that ignoring these abuses |
| various companies from Reuters to IBM have set | | | | practically amounts to willful ignorance." Chilling |
| up storefronts in Virtual World. It's unclear what | | | | Effects.Org |
| the annual GDP of Virtual World is -- estimates | | | | Sounds like the wild west so be vigilant. |