Last month, six content creators in Second Life filed suit against another user named Thomas Simon (or, as he's known in the virtual world, "Rase Kenzo") for allegedly duplicating and selling thousands of products inside Second Life. Yesterday, a judgment of consent was filed in the case, which means the content creators effectively win. Because the settlement refers to the virtual items as "merchandise," as soon as the judge enters the settlement and makes it all official, the US government will have officially recognized virtual property.
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