Linden Research/Second Life Sued by Virtual Goods Maker

by Ivan on September 15, 2009

Kevin Alderman, who sells virtual goods in Second Life, has sued Linden Lab for allowing other to sell his products without his permission.
The lawsuit alleges that Eros’s virtual goods sold for use in Second Life have been counterfeited and cloned by numerous Second Life residents.

Shannon Grei, who sells virtual clothing, has joined in the lawsuit alleging that Linden Lab infringes her copyright by allowing other marketers to sell fake versions of her designs.

Making Real money for Virtual Foods

To put this in perspective.

Alderman has made more than $1 million by selling products such as virtual beds, which cost $20 to $40.

MediaPost (http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113576) report that Alderman and Grei believe that “Linden Labs should be held responsible for the knock-offs because the site allegedly allows users to upload fakes, sell them for Linden currency, and facilitates the exchange of Linden dollars for U.S. currency.”

Lawsuit Allegations

The allegations are that Linden Lab has created in Second Life a system in which it:

1. Directly engages in piracy
2. Actively allows users to engage in piracy by providing tools
3. Profits from its own piracy and the piracy of its users

Linden Lab faced similar allegations in two prior lawsuits; neither resulted in substantive court rulings.

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