Why Would Amazon Want To Block Links From A File Sharing Search Engine?

Wed, Apr 9th 2008 2:27am

Filed Under:
california, charles calderon, digital goods, infinite goods, itunes, tangible goods, taxes

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California Lawmaker Wants To Change Law To Tax iTunes; Pretending Infinite Goods Are Tangible

from the reality-is-meaningless-if-it-gets-in-the-way-of-tax-revenue dept

Slashdot points us to the news that a Los Angeles (surprise, surprise) area politician is pushing to change a California law that requires sales tax on the sale of tangible goods. He wants the law to be adjusted such that digital goods would be considered tangible goods so they can be taxed. Effectively, this is a way of applying a sales tax on iTunes downloads as a way to make up the California budget shortfall. Considering that the entertainment industry has been trying to convince the world that intellectual property is no different than tangible property, it's not surprising that a politician coming from LA would see no problem with pretending infinite goods are tangible goods. However, it seems likely that such a plan would backfire. If anything, it will push more people to look for alternatives (potentially unauthorized) alternatives if California forces an unwanted price increase on iTunes. Also, if the law starts treating digital goods as tangible goods, will that give people other rights -- such as the right to do what they want with the content after purchase? It looks like there's plenty of opposition to this plan, so it probably won't go very far. In the meantime, though, does someone want to explain the difference between tangible goods and infinite goods to Assemblyman Charles Calderon?

Surprises

Wed, Apr 2nd 2008 6:02am

Filed Under:
auctions, digital goods

Companies:
ebay

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eBay Bans Auctions Of Digital Goods

from the another-market-mucked-up-by-digital-goods dept

We've pointed out more than a few times how digital goods muck up traditional markets that are based on the concept of scarcity, and it appears that eBay has come to the same conclusion. It's now banned the direct sale of purely digital goods from either its auctions or its direct sales offerings. Instead, those who want to sell digital goods need to put up a classified ad on the site, rather than a transactional platform. The basic reason has to do with the (wouldn't you know it?) infinitely reproduceable nature of digital goods. That allows eBay sellers to list the same product many, many, many times over, since they have an infinite supply. This practice is screwing up listings and (more importantly) is being used to manipulate feedback ratings, and so eBay has done away with it.

(Mis)Uses of Technology

Mon, Dec 3rd 2007 7:16am

Filed Under:
digital goods, theft, virtual worlds

Companies:
linden labs

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If Someone Picks Your Pocket In Second Life, Who Do You Blame?

from the that-border-between-virtual-and-real dept

We've recently covered a few cases where real world laws end up in virtual worlds due to accusations of theft or fraud. These cases are always problematic, because it's impossible to know where to draw the boundaries. If a virtual world allows theft, then is it still a crime in real world? Now let's make this question a little more complicated. Some researchers have discovered that, thanks to a flaw in Apple's Quicktime, which is used within Second Life, it's possible to steal money from players within Second Life. This is important, because Second Life money can quickly be converted into US dollars. So, the virtual world "pick pocketing" can have real world implications. However, is it a crime?

Second Life is famous for pitching itself as a world where anything can happen -- and you could assume that if it can happen in the virtual world then it's legitimate activity -- or should be dealt with within the confines of the world. Otherwise, you're opening the door to people in worlds where "thieving" is encouraged or a part of game play accusing others of stealing in real world courts as well. Of course, that does open up the question of whether or not someone is to blame for the lost money here. Some could pin the blame on Second Life -- and, in fact, the article above notes that Second Life may need to upgrade its security to be more "bank like." Some could pin the blame on Apple, who has yet to patch the flaw in Quicktime. Others, of course, might blame users for keeping "valuable" currency in an unsecured environment like Second Life. And, of course, some would blame the person exploiting the security flaw in the first place. The point, though, is that it's a bit more complex than many would make it out to be, and future scenarios are only going to get more complex.

Legal Issues

Wed, Nov 14th 2007 12:16pm

Filed Under:
digital goods, theft, virtual worlds

Companies:
habbo hotel

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Real Police Cross Over Into Virtual World Again; Arrest Teen For Theft Of Virtual Furniture

from the bad-precedent dept

Just a few weeks ago, we pointed to a lawsuit involving two Second Life users, with one accusing the other of "theft." We pointed out, as we have for quite some time, how problematic it is when real world laws are applied within a virtual world. The point of a virtual world is that anything is possible -- and putting the constraints of the real world on those worlds not only seems counterproductive, but potentially dangerous. That Second Life lawsuit was between two users, but over in the UK, a similar situation has gone even further: involving the police.

The police have arrested a teenager accused of "stealing" virtual furniture from another player in the virtual world Habbo Hotel. Again, it's true that the virtual furniture has real monetary value, but it's the sort of thing that should be taken care of within the framework of Habbo Hotel. The folks who run the world should be able to deal with the situation, as they are the world's de facto government. If you don't think this is a problem that's going to get more and more problematic, then just start to think through the scenarios of what happens next. What happens in an online virtual world where "theft" is designed to be a part of the gameplay? Can players then call the real cops when they lose in the game? That situation may be a bit more black and white, but many of these virtual worlds are designed to be defined by the users. So what if the users decide that "theft" is a part of the gameplay? What if some users decide it is and others don't? Bringing real world laws and real world cops into virtual worlds is guaranteed to cause problems.

Legal Issues

Tue, Oct 30th 2007 8:21am

Filed Under:
digital goods, second life, theft

Companies:
linden labs