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Giovanni Liberty

Member since: May 19th, 2006

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Second Life publisher sued: Bragg v. Linden Research

May 19th 2006 5:30PM (Joystiq)
This lawsuit brings up interesting discussions regarding items heretofore not discussed. If I purchase land in second life, create a virtual casino on my sim (an SL term for a plot of land), and people walk into my casino and spend money inside the casino, and I earn an income worth $10K a month in real life, should I pay taxes on it (this scenario exists already)? Should Linden be required to send a 1099 to the IRS? Should I have a gambling license in the state that servers are located? If I sell virtual land at a profit, should I pay short term or long-term capital gains on the profit of the sale of the virtual land? If I create a virtual adult club, do the township ordnances regarding sexually explicit materials or establishments legally bind me in my city or in the town of the headquarters of the company? I can cash my currency out into real US dollars, and we have seen examples of people inside Second Life making real world incomes of $250K annually. If I design a line of virtual clothing, and people steal that design, is that copyright infringement? Second Life is a $60M world and growing. These issues are not going away.

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