Thursday, July 05, 2007

Top Five Virtual World Business News Items

Coke in SLTaxes, trademarks, advertising, malware, and more taxes. For every story I report on for GigaOM, there’s a bunch I save, to see how they develop. Here’s a handful of online world/MMO news items I’ll be keeping an eye on for future stories in the realm of metaverse business:

  • South Korea to tax virtual world wealth: Starting in July, if you earn more than 6 million won (about USD$6500) from the buying and selling of gold coins and other MMO valuables, you’ll have to pay a value added tax. Make more than $13,000 from that trade, and you’ll have to get a business license. (Hat tip: Raph Koster.)

  • Coke frees up its trademark in Second Life? According to Reuters’ Second Life correspondent, the most recognized corporate brand in the world is letting SL users “hack” their logo into virtual products, as long as the Coke-infused items don’t contain anything overtly sexual or violent. SL blogger Csven Concord has a very interesting interview with a Coke executive involved in this project. (Disclosure: the Coke presence was co-developed by an advertiser on my SL blog.)

  • Virtual world advertising forecast to reach $150 million by 2012: That according to Parks Associates, and that’s just the money spent in currently existing worlds. In related news, another analyst expects overall advertising in games to reach $2 billion by 2011.

  • Hackers more interested in stealing World of Warcraft gold than real cash: Phish for someone’s bank account information? That’s so old school– plus, that’ll get you put in jail. McAffee reports that there is now more malware created to steal WoW account gold, than financial passwords. Logic being, if the cyber thieves get caught trying to hack WoW, the penalties are a lot less steep– plus, they can always sell the gold for cash on the gray market.

  • Uncle Sam sets virtual world tax policy next month: Speaking of taxes, the US Congress will issue its first report on the issue in August. No one knows what it’ll say, but if they make an income through real money trading or content creation in Second Life, Americans might want to start collecting receipts now.

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Second Life Avatar Sued for Copyright Infringement

stroker-serpentine.jpgRight in time for the July 4th holiday week (after all, what’s more American than demanding your day in court?), businessman Kevin Alderman and his lawyer have just filed suit against someone who goes by the name Volkov Catteneo, for copyright infringement.

This would be just one IP dispute in thousands handled by US courts every day, except for two unique features: the contention is over a virtual sex bed which doesn’t exist, and the named defendant also doesn’t exist. As such, the suit will establish an enormous precedent in the new realm of virtual world law, however it shakes out.

I should back up and explain those last three sentences.

Linden Lab, the company which provides Second Life’s virtual land (i.e. server grid) and means to explore it (i.e. interface software and currency) has since late 2003 allowed its users to retain the underlying intellectual property rights to all objects and programs created in the world with its internal building and scripting tools.

This policy unleashed enormous user-created innovation, and enabled thousands of users to make a living with their virtual content creation. Alderman, known in Second Life as Stroker Serpentine (pictured) is one of SL’s leading entrepreneurs; his SL-based adult entertainment industry has become so successful, he recently sold his X-rated Amsterdam island in Second Life to a real world Dutch media firm for $50,000 very real dollars.

For the last fours years, this IP rights policy has been working more less as designed, but those who follow the virtual world business have been waiting for the other shoe to drop: what happens when one avatar tries to sue another avatar for copyright infringement in an actual court?

It finally has: Alderman/Serpentine believes Catteno is selling unauthorized copies of his SexGen bed, a piece of furniture with special embedded animations that enable players to more or less recreate an adult film with their avatars. Alderman sells his version for the L$ equivalent of USD$45, and they’ve helped make his fortune. Catteno is selling his alleged knockoff for a third that price, undercutting him.

But who does Kevin Alderman sue? Since SL users have no obligation to reveal their real life identity to other players, all the relevant data exists only on Linden’s servers and files. This is why Alderman is threatening to subpoena Linden Lab for this data, so he can bring the real person behind Catteno to trial.

I contacted Stroker Serpentine in Second Life and asked why he chose going to trial. Volkov Catteneo’s account was created in February 2007, while Stroker is a longtime and well-loved player. Why not just voice his complaint about Catteno to the SL community, so they can ostracize him and his allegedly infringing beds?

Stroker tells me he did try that method in another case, but ironically, it backfired. “[T]he last time this happened I confronted the individual about it and requested that they cease and desist…,” he says, “I was made out to be a bully and dragged through the [SL community] forums.” Linden Lab has a system for letting users file DMCA suits against each other; Stroker tried that twice, but wasn’t happy with how Linden responded. So he found a law firm specializing in copyright/trademark disputes. “We weighed all alternatives and listened to a lot of advice. So here we are.”

Trouble is, Catteno tells Reuters he doesn’t have any real world data on file with Linden Lab. (A plausible claim; since ‘06, it’s no longer necessary to register a credit card or other identifying data with Linden Lab.) I imagine the company could supply Alderman and his lawyer’s with Catteno’s IP address, and let them deal with it from there. Or if it goes forward in court, perhaps the judge will review the case, decide it’s fundamentally nuts, and toss it. Then again, the court might let it go to trial, as it did with another user lawsuit against Linden Lab, and what happens then is anyone’s guess. Numerous companies which depend on user-created content are waiting to see. In any case, may the best avatar win.

Update, 9:00am: For the legally minded, Reuters’ SL reporters (who broke this story) have put the actual legal form in .pdf at this link.

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Thursday, June 28, 2007

MIT TechTV - YouTube Like Portal for Science and Tech Videos

MIT School of Engineering have launched a video sharing website called "MIT Tech TV" for showcasing lecture recordings, student presentations and other video content particularly about science, engineering and technology.

MIT TechTV

While the MIT TechTV videos can be viewed by anyone on the web, only members with an @mit.edu email address - students, faculty, MIT staff or even the alumni - can upload videos on the MIT TechTV portal.

MIT TechTV website, which looks the same as Blip.TV with a new skin, has no connection with the TechTV channel (now G4TV).

This is MIT's second attempt to share knowledge with the outside world. Earlier, MIT had launched the very popular MIT OpenCourseware project to make the course materials used in the teaching of virtually all of MIT's courses available on the Web, free of charge.

techtv.mit.edu/  [MIT Tech TV] ocw.mit.edu [OpenCourseware]

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Get the feel of Photoshop in GIMP with GIMPshop

GIMPshop.png

Windows/Linux/Mac: Open-source app GIMPshop is a modified version of GIMP designed to give the feel of Photoshop.

GIMPshop modifies the menu structure to closely match Photoshop's, adjusts the program's terminology to match Adobe's, and, in the Windows version, uses a plugin called 'Deweirdifier' to combine the application's numerous windows in a similar manner to the MDI system used by most Windows graphics packages.
As any Photoshopper will attest, GIMP is generally not as easy to work with as Photoshop out of the box. The premise behind GIMPshop is that Photoshop users will be able to dive right into GIMP while facing only a minimal learning curve. GIMPshop is a free download for Windows, Linux, and Mac.

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TWISTER: goggle-free 3D rotating panoramic display


In a device eerily akin to teleportation machines seen in major motion pictures (seriously, check it after the break), the Telexistence Wide-angle Immersive STEReoscope aims to "immerse viewers in a 3D video environment" sans those pesky goggles. Developed by a team at the University of Toyko, TWISTER is being hailed as the "world's first full-color 360-degree 3D display that does not require viewers to wear special glasses," and it's finally coming together after a decade of work. Within the cylindrical, rotating device, you'll find some 50,000 LEDs that give off the illusion of a three-dimensional object without any ocular aids. Moreover, the team is already looking into the possibility of adding 3D videophone technology to spruce up video telephony, but we'd be totally content with a couple rounds of Halo in this thing.

[Via PinkTentacle]

Continue reading TWISTER: goggle-free 3D rotating panoramic display

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