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Articles Posted in Terms of Service

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Who Owns Software?

In a very significant decision, the 9th circuit Court of Appeals ruled that software developers can legally prevent customers from owning the copies of software that they pay for. Instead, if the software license agreement is properly drafted, the software developer retains ownership in the copies they distribute and the…

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There’s No 5th Amendment In Second Life

In the real world (at least in the US), the 5th Amendment to the Constitution states, “No person shall … be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” A host of jurisprudence has determined…

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Blizzard Wins Big Against Unauthorized Secondary Market Provider

A California Court ruled last week in favor of Blizzard, finding that Scapegaming (a.k.a. Alyson Reeves) ran an unauthorized secondary market that handled microtransactions in violation of the World of Warcraft terms of service. Blizzard sued Scapegaming last October for copyright infringement. The court awarded about $88 million dollars, including…

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Facebook Loses Round One Against Power Ventures

We recently reported on the Facebook v. Power Ventures case, in which Facebook alleged, among other things, that Power.com using automated tools to populate a portal that aggregates a user’s social networking profiles violates its terms of service and the Computer Fraud and Abuse Act and an analogous provision of…

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Criminal Liability for Not Reading or Abiding by Terms of Service?

Many people routinely click on the Agree button without reading the terms of service. Doing so can be perilous for many reasons. A pending case highlights another potential reason to read and abide by the terms of service – potential criminal liability. Granted, there are some unique facts here as…

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Second Life Gets Action…Class Action That Is

Linden Research Inc. and its CE Philip Rosedale have been named as defendants in a class action lawsuit relating to the ownership status of virtual property in Second Life, the popular virtual world in which users can realize significant gains from buying and selling virtual real estate (land and buildings),…

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Zynga Seeks to Shutdown Secondary Market for Virtual Goods and Currency

On April 8, 2010, Zynga sued Playerauctions.com for operating a website that provides an unauthorized “Secondary Market” for enabling Zynga game users to post and sell “Virtual Currency” and “Virtual Goods” allegedly in violation of Zynga’s Terms of Service. According to Zynga, its Terms of Service prohibits users from selling…