Virtual World Law Blog

Gametek has filed a complaint for patent infringement against a large number of game and game-related companies over a virtual goods payment patent. 

The patent issued based on an application originally filed September 29, 2000, and claims priority to a provisional application filed June 20, 2000. The patent issued July 11, 2006. We are happy to provide you a copy of the extensive prosecution history, but it is too large to provide a link here.

One of the independent claims recites as follows:

15. A method of managing the operation of a game which includes a game environment, and is programmed to control a gaming action of at least one of a plurality of users, said managing method using a programmed computer to effect the following steps: a) tracking the activity of the at least one user in the course of the gaming action; b) creating an account for the at least one user for maintaining a balance of the at least one user; c) enabling the at least one user to select at least one of a plurality of game objects; d) setting the purchase price of the at least one game object; e) comparing the account balance with the set price of the at least one game object and, determining if the user's account balance is not less than the set price, then the at least one user is eligible to purchase the one selected game object; f) presenting to the at least one user an offer to purchase the game object dependent upon a group of game parameters comprising the tracked activity of the at least one user, and an indication of whether the at least one user has made a commitment of consideration to purchase the one selected game object; g) ordering the at least one selected game object without interrupting the gaming action of the at least one user; and h) supplying the selected one game object to the at least one user without interruption of the gaming action of the at least one user and incorporating the game object into the game.

The basis for the patent being granted is set forth in the Examiner's reasons for allowance [Click here for a copy]. In part, the examiner refers to console-based games but noted that none of these "disclose offering a game object to a user for a price and allowing the user to access and incorporate said object in a game without interrupting the game." The examiner also referred to other prior art and said "the instant invention is distinguished from the prior art...as the system tracks a user's gaming actions...determines where a user is eligible to purchase a game object based on the user's account balance...presents and offer to the user to purchase the game object based on ...[the] tracked gaming action, [where] the user purchases and is supplied with the game object without interrupting the gaming action, and the object is incorporated into the game."

Does anyone think that the use of player accounts to enable in-game purchases was new in 2000?

We have collected prior art that may impact the validity of this patent. We have been in touch with some companies and are reaching out to others regarding a potential joint defense group. Even companies who have not yet been sued may be interested in monitoring this case and/or helping to invalidate the patent.

We will provide additional postings here. Please check back.

If you have information to share or have additional questions, please contact us at: Virtual Goods Payment Team

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Scientists Find Safer Ways To Test Medical Procedures

Scientists are developing ever more sophisticated versions of "virtual patients" with the aim of testing medical devices and procedures that can't readily be assessed in real people.

FarmVille Creator Zynga Kicks Off $1B IPO

Zynga Inc., creator of the FarmVille and CityVille phenomena as well as other games that piggyback on Facebook Inc.'s tidal wave of popularity, became a publicly traded company Friday when it made a $1 billion initial public offering of its stock.

What's the right social cocktail for you?

From supply chain management to PR crisis management, the role of public social data in the enterprise is no longer framed around the question of "why does this data matter?"  That said, we are still in the very early stages of corporate adoption and there are plenty of unanswered questions for most companies.   Once enterprises get past asking why this data is important, the next obvious question to address is: which public social data is best for performing business analysis and decision-making?  Facebook?  Twitter?  Google+?, WordPress?

U.S. Senator Mad that Your Tax Dollars Saved Video Games

Video game preservation, educational robot dragons and Department of Homeland Security Sno Cones are just some of the "outlandish" federally funded projects called out in U.S. Senator Tom Coburn's annual big book of wasteful government spending this week.

New Research Shows 72% of Consumers Welcome The Opportunity To Watch Sponsored Videos In Online Games

A new study conducted by SponsorPay, the leading international cross-platform social advertising solution, found that consumers welcome the opportunity to watch sponsored videos in online games and not only recall these brands but also harbor positive sentiment towards them.

New Report Details Demographics of Mobile Gamers Buying Virtual Goods

As gamers age, so does their propensity to buy mobile virtual goods, according to a new study by MocoSpace, the largest mobile gaming community in North America. The results of the new study focusing on virtual goods consumption and engagement by age found younger gamers (25-35) spend the most time playing social games, but gamers over 45 buy exponentially more virtual goods than their younger counterparts.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Virtual Justice

Rutgers University law professor Greg Lastowka looks at whether players can and should be granted legal ownership of virtual items, whether or not there's any existing legal precedent and how the virtual item landscape may change in the near future.

Italian court: Online editors not responsible for reader comments

Online commentators Wednesday welcomed a ruling by Italy's highest court that the editors of online publications cannot be held legally responsible for defamatory comments posted by their readers. In a ruling handed down at the end of October, the Court of Cassation acquitted a former online editor of L'Espresso news magazine of the crime of failing to prevent defamation committed by one of her readers.

OUII Seeks Clarity On 'Process Of Establishment' Claims

The U.S. International Trade Commission should review a recent finding in a video game patent infringement case and clarify how to determine if a domestic industry is in the process of being established in Section 337 cases, the ITC's Office of Unfair Import Investigations said in a petition publicized Tuesday.

Germany's Merck wants Facebook page back

Germany's Merck KGaA has threatened legal action after it said it lost its Facebook page apparently to rival Merck & Co. in the U.S., though it has yet to identify defendants in the case.

Virtual World Startups Seek Refuge From Patent Attacks

The developers behind the next evolution of the Internet -- linked, immersive, 3D environments -- are trying to think of ways to minimize the adverse impact of software patents on their industry.

Social media in for worse cyber attacks in 2012

Social media sites and cellphones will prove to be fertile grounds for cyber criminals to exploit globally important events in 2012 to steal personal information and data and make financial gains, cyber security firm Websense has said. The Websense document, " 2012 Cyber Security Threats," has said identity information posted by users of sites such as Facebook, Twitter or LinkedIn may prove more valuable to cybercriminals than even credit cards.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

PBS KIDS Sets New Bar in Educational Gaming Space

PBS KIDS today launched over 40 new cross-platform games designed to help children ages 2-8 build critical math skills. They include PBS KIDS' largest offering of interactive math content for preschoolers to date. The games comprise several suites, each of which is centered around a PBS KIDS media property - from CURIOUS GEORGE to THE CAT IN THE HAT KNOWS A LOT ABOUT THAT!. Available for free on the new PBS KIDS Lab website (PBSKIDS.org/lab), each suite links a set of games across platforms - accessible through computers, mobile devices and interactive whiteboards - so that kids engage with the same characters as they move from device to device. The content is also linked by a curricular framework, leveraging games on a variety of platforms to support key math skills.

Zynga announces 'CastleVille,' 9 other titles

From its sparkling new headquarters here, the company announced a major new gaming platform, code-named Project Z, that will let its millions of customers seamlessly play games on Facebook and Zynga.com; a lineup of 10 new titles, including Zynga Bingo, Hidden Chronicles and the mobile-only Dream Zoo; and, perhaps, its most ambitious game yet, CastleVille.

Hollywood Taps Videogames as Source of Inspiration

Despite the tarnished history of videogame adaptations, studios are moving forward with more than dozen big-screen gaming movies. What's amazing, though, is it's possible -- just possible -- that some of these films might not stink.

What drives Adidas' virtual wall

So popular was Inside Retail's story about the Adidas in-store 'virtual wall' which took an innovation honour at the recent World Retail Awards, we're revisiting the concept with an interview with designer David Judge from Stuart MacGill.

Oracle To Launch Enterprise Social Network

Oracle Social Network enables users to communicate and collaborate with other people inside or outside of their organization using a variety of tools, such as personal profiles, groups, activity feeds, status updates, discussion forums, document sharing, co-browsing and editing, instant messaging, e-mail, and Web conferencing. Oracle Social Network also provides native applications for iPhones, iPads, and Android devices, along with Web browser support, so mobile users can work and interact from anywhere.

The Supreme Court has validated the ability of software developers to prevent customers from owning the copy of software they acquire. Because software developers can limit the customers rights to a mere license, they can impose restrictions that can prevent the customer from reselling the software. This is a huge win for software companies as it limits the resale market, which cuts into sales of new software. This ruling may also benefit the virtual goods industry which also commonly uses a licensing vs. sale model. However, it is important to note that in order to get the benefits of this decision, the software distributor must carefully craft their End User License Agreement.

On October 3, 2011, the U.S. Supreme Court declined the petition for certiorari regarding the Ninth Circuit Court of Appeals decision in Vernor v. Autodesk, Inc. As we outlined in a previous post, the Vernor decision held that software developers can grant mere licenses and that doing so does not violate the First Sale Doctrine," which states:

"[T]he owner of a particular copy...lawfully made under this title...is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy..."

This doctrine applies if the initial distribution is a sale. As the Ninth Circuit held in Vernor, software developers can legally prevent customers from owning (and distributing) the copies of software that they purchase. This is accomplished by drafting software purchase agreements (e.g., End User License Agreements) in a way to avoid the first-sale doctrine, such as by structuring the agreement as a license or placing valid restrictions on the customer's use of the software. Under such an agreement, software developers can retain ownership in the copies they distribute and customers merely have a license to use the software.

Extending the Vernor holding to virtual goods and currency, this ruling seems to provide additional ammunition for the validity of merely licensing virtual items to users instead of selling the items. This approach is commonly used with virtual item models.  In light of Vernor, it is clear that the "license" which is included in the terms of service must be carefully drafted.  But if done properly, this can help prevent unauthorized resale of virtual items via secondary markets or otherwise.

For more information on the legal issues with virtual goods, click here.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

U.S. virtual goods revenue on Facebook to grow 32 percent to $1.65B in 2012

That growth rate is lower than the 40 percent growth for 2011, as the market analyst firm predicts that revenue this year is growing from $800 million in to 2010 to $1.25 billion by the end of 2011. While that is rapid growth, it shows that the fast-growing virtual goods and social gaming industries that use it are maturing and slowing down.

SecretBuilders Passes 5 million Member Mark, Makes Parents Magazine's Top 10

SecretBuilders, a game world for children with an emphasis on creativity and historical adventure, was selected by Parents Magazine, the leading parenting magazine in the world, as one of the Top 10 kids' websites for 2011, alongside PBS Kids, National Geographic's Animal Jam, Nickleodeon's Monkeyquest, and Pearson's Poptropica.

Online gamers crack AIDS enzyme puzzle

Online gamers have achieved a feat beyond the realm of Second Life or Dungeons and Dragons: they have deciphered the structure of an enzyme of an AIDS-like virus that had thwarted scientists for a decade.

Facebook Changes The Social Networking Game... Again

Today at their annual F8 conference Facebook announced some dramatic changes to its platform. But this time it's different. Why? Because the big social networks (i.e. Facebook, Twitter, MySpace, and now Google) have traditionally battled over the social graph - your relationships in the digital world and how to help build and connect them, but now Facebook is laying claim to your life.

Dangerous Intersection Of Mobility And Credit

There's a 2011 version of the birthday cakes, mugs of beer, and other gifts Facebook used to let us "buy" for our friends. Since July 1, Facebook has required all game developers that receive payments through the site to use Facebook Credits for the transactions. When developers go to convert Credits into cash, Facebook gets a cool 20% cut.

Clarins Gets into Social Gaming on Facebook

In a seemingly unusual move for a cosmetics company -- not to mention a French one -- Clarins launched a casual game on Facebook earlier this week called Spa Life.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Video Game Targets 'Tea Party Zombies,' Fox News Personalities

A New York-based video game developer has set his virtual crosshairs on Republican and conservative political figures in a game called "Tea Party Zombies Must Die," which allows players to indiscriminately slaughter politicians like Michele Bachmann, Mike Huckabee and Sarah Palin.

Red Robot Launches Life is Crime Game With Location-Based Play

There's got to be more to location-based mobile games than checking in. That was the thinking behind the game startup Red Robot Labs and its first game, Life of Crime. Life of Crime uses what Red Robot believes is going to be its critical asset: the R2 Gaming Network platform for making location games.

Can Gamification Help Solve the Online Anonymity Problem?

There's been a lot written recently about the issue of online anonymity, and in particular how Google believes that a "real names" policy is necessary so that the Google+ network maintains a certain tone and level of trust.

Amazon Gets Serious About Social Games, Calls Out for Developers

The Facebook gaming arena is about to welcome a new gladiator: Amazon. The household name of online retailers (and e-readers) is officially pulling out all the stops for its inevitable entrance into the space, openly and internally calling out for a team of designers and developers.

Most Bosses Monitor or Block Social-Network Use At Work

Viruses, loss of confidential data and fear of employees tooling around doing sweet FA on Twitter are the top reasons that employers give for putting the brakes on social media in the workplace. And it's stopping them benefiting from new collaborative technologies, says ClearSwift Research.

Social Gaming Startup Guerillapps Launches First Green-Theme Upcycling Game on Facebook

Guerillapps, a Manhattan-based social gaming startup, today announces the launch of Trash Tycoon, its first green-theme social game for Facebook. The game is now available for play and takes a unique approach to social gaming by incorporating awareness for environmental issues and sustainability. The first game to ever highlight the concept of upcycling, Trash Tycoon is an immersive, fun game that presents opportunities for real-world impact.

Your Virtual Cow Could Be Worth $0

Fans of SuperPoke! Pets were crushed recently when Google announced it was pulling the plug on the game. Google killed off all but one project from social app maker Slide, which it bought last year for around $200 million.

On September 15 & 16, join industry titans such as Sony, SalesForce, Zappos, and Adobe at the GSummit in New York City. GSummit NYC will show attendees how to use the power of games to create breakthrough engagement with their customers and employees. Companies like Gilt Groupe, Google, NBC/Universal, MTV, Recyclebank and Aetna have leveraged gamification to transform their businesses, and will share startling insights, statistics and hands-on workshops at GSummit NYC. Check out some of the amazing content and speakers. Register now before GSummit sells out.

Jim Gatto, Leader of Pillsbury's Virtual Worlds & Video Game team and Social Media, Entertainment & Technology team will be speaking from 1:30 - 2:15 PM on September 15 about gamification law and a formula for success.

Earlier this year, Jim spoke at the Gamification Summit held in San Francisco. His presentation on managing legal risk in gamification can be viewed below:

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Enter at Your Own Rift: How gold farming really hurts the economy

Recently, Trion Worlds CCO and RIFT Executive Producer Scott Hartsman talked to Gamasutra about how gold farming is a much bigger threat than we assume, particularly because of the large amount of credit card fraud. Those who played RIFT at launch probably recall the large wave of hacked accounts early on. According to Hartsman, the hacking attempts were so quick and so intense that the game could have been "denial-of-serviced off the internet" when it launched.

Want To Be a Gamification Expert? Get Certified

Gamification, that buzz word panned as hype by some, has increasingly won over companies, investors and even research firms like Gartner, which now predicts half of all companies will use gamification by 2015. So what's next? How about gamification certification.

Facebook Ramps Up Lobbying Over Privacy

Facebook Inc. has beefed up its public policy efforts with an eye to shaping federal privacy legislation, sharply increasing its lobbying expenditures and expanding its roster of Washington insiders, disclosure records show.

NYPD Looks to Mine Social Networks for Infor on Criminal Activity

Privacy is something most people worry about and try to protect, but on social networking giants like Facebook, it's almost impossible to protect all of your information despite privacy settings. Now, the New York Police Department (NYPD) is data mining Facebook, Twitter and MySpace to track hooligans who have committed or are planning to commit crimes.

Registration Opens for Game::Business::Law 2012

Registration is now open for the 4^th Annual Game::Business::Law Summit on January 25 - January 26, 2012. The event will be held at Southern Methodist University, Dedman School of Law and is hosted by The Guildhall at SMU, SMU's Dedman School of Law and The Center for American and International Law.

A Guide to Controlling Privacy, Info on Google+

Google+is the new social networking kid on the block, and one of the main reasons so many people are interested in the service over Facebook is Google+'s proclaimed focus on protecting users' privacy. Whether you're a new Google+ user or you're already a pro, understanding how to control your information on the site can make you feel much more at ease on the social network. Here's the lowdown on Google+'s privacy controls, including a few of the more buried settings you'll want to know about.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

LinkedIn's 2Q Earnings Soar as Growth Accelerates

The results announced Thursday provided the first update on LinkedIn's progress since the company's headline-grabbing initial public offering in May. LinkedIn's shares have more than doubled from their IPO price of $45, stirring a debate about whether investors are overvaluing Internet companies. LinkedIn earned $4.5 million, or 4 cents per share, in the April-June period. That contrasted with earnings of $938,000, or 2 cents per share, at the same time last year.

Controversy Erupts Over SpotON3D's Patent Claims

Competing OpenSim hosting companies are concerned that SpotON3D's viewer plugin patent isn't original, will hinder innovation, and that the company isn't playing fair with the broader open source community. Other developers, however, say that SpotON3D's innovation can help energize OpenSim adoption -- and the patent, if it is granted, may not be that burdensome to the community.

Diablo III Will Have Real Money Auction House

For as amazing as Diablo II was, the economy was rather quickly ruined by the sale of virtual items. Most of the better loot required a significant time investment - or luck - so many players naturally flocked to the more convenient option. Blizzard, being the savvy developers that they are, has come up with a work-around for that: A flood of reports are coming in that Diablo III will feature an in-game auction house that will allow you to sell and buy virtual items (including virtual currency) for real cash.

EA Chief Vows to Keep Up With Big Changes In the Video Game Industry

Electronic Arts chief executive John Riccitiello said in a conference call today that the video game industry has fundamentally changed as gamers embrace new digital alternatives to console games - from mobile games to social games. And, he said, EA's strategy is changing with it.

SAP Launches The Ultimate Travel Challenge Dashboard

I find the concept of gamification fascinating so when I heard that a fellow team at SAP was launching a game to showcase one of the company's solutions it peaked my interest.  The game was built on SAP Crystal Solutions and showcases how the product can help your business by simulating the pressure of making informed decisions in a face-paced environment.

Augmented Reality Kills the QR Code Star

Augmented reality leader Layar just took its system to a whole new level by installing a real-world object recognition protocol that's a little like Google's Goggles. In one swoop it may have turned AR apps from intriguing, inspiring, and occasionally useful toys into serious tools for information discovery and, of course, advertising. Let's call it hacking the real world.

PayPal: 12M Monthly Users Are Paying For Virtual Goods

PayPal, which collects a lot of data on online payments, says the monetization of digital content has come a long way since the company was launched in 1998 and sold to eBay in 2002. Now it generates more than $1 billion in quarterly revenue and has more than 100 million active users.

Many people invest significant time, effort and in some cases real money to acquire virtual goods. There is great perceived value in these virtual goods. But there are a growing number of cases, where users have been the subject of hacking and other situations where they have had their virtual property stolen. See for example our prior blog entry on a massive theft of 400 billion poker chips from Zynga users.

Most game and virtual world operators try to shield themselves from claims of loss by their users through effective legal strategies embodied in their terms of service. In most cases, users are only granted a license to use the virtual goods, but they do not own them and the terms often make clear that there is no independent value to goods. Additional disclaimers and liability avoidance language may also be included. Yet, this has not stopped some users from suing for the loss of the perceived value of their virtual goods.

Given these potential claims, what else can companies do to protect themselves from such risks? Apparently, this risk may now be insurable - at least in China - thanks to a collaboration between Sunshine Insurance Group and Gamebar.  According to a report, by China Daily a Sunshine Insurance spokesperson said "The insurance will help to reduce operating risks for online games companies as the companies which purchase the insurance will be covered to compensate customers in the event of lost or stolen property."

It will be interesting to see if that catches on in the US and elsewhere, and if so, what will be covered and what will not. Check back for updates.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Is Online Poker Over?

This week, the FBI landed a crushing blow on all of the online poker sites that are advertised nightly in the United States. Individuals involved with internet gambling companies PokerStars, Full Tilt Poker and Absolute Poker were indicted for bank fraud, money laundering, and illegal gambling and sued in a companion civil suit that seeks at least $3 billion in forfeitures and penalties.

HP Rolls Out Virtual Banking With Avaya's Web.alive

Building on HP's Unified Communications and Collaboration Services portfolio for the enterprise, HP and Avaya today announced a strategic offering that provides banks with a customer-centric, humanizing element for assisted self-service.

What Effect Has the Internet Had On Religion?

The concept of religious ritual is so deeply embedded in our social fabric that it is natural for it to have made the leap to virtuality. And it hasn't just reared its head in worlds such as Second Life. Social networks, including Facebook, have active and close-knit communities of religious followers of all creeds, gathering in what science writer Margaret Wertheim described in her 1999 book, The Pearly Gates of Cyberspace, as "a new kind of realm for the mind".

Hackers Go After Points, Credits, and Virtual Currency

Virtual thieves can sell stolen points in online forums or on eBay, or they can try to exchange points for rewards. However, most online retailers, social media, and gaming websites recognize the thieves' behavior patterns when cashing in stolen points. By analyzing the history of the device being used to access a website, the website's operator can prevent fraudulent transactions.

Social Gaming on Track to Become $5 Billion Industry by 2015

Parks Associates, an internationally recognized market research and consulting company specializing in emerging consumer technology products and services, forecasts revenues in the social gaming market will increase by five times from 2010 to 2015, due in large part to advertising revenues and sales of virtual items. These factors already pushed revenues over $1 billion in 2010.

FNB's eBucks Buy 19 Million KMs of Fuel

In December 2009, members of eBucks, First National Bank's rewards programme, were given the ability to pay for fuel with eBucks, FNB's virtual currency, at participating Engen service stations around South Africa. Since then, FNB has enabled eBucks' members to fill up on fuel to the value of over R13m at participating Engen service stations - which is enough fuel to drive almost 20 million kilometres or - more accurately - to make 25 trips to the moon driving an average family sedan.

IU Shares $297,929 NSF Grant to Study Use of 3D Virtual Worlds

The National Science Foundation has awarded $297,929 to a multi-disciplinary team from Indiana University and Arizona State University. The award supports on-going research concerned with the use of computer-generated 3D virtual environments by business and educational enterprises.

Virtual Currency Drawing in More Viewers

Virtual currency isn't just for gamers any longer. New data from Jun Group indicates that video viewers are also interested in virtual currency. According to their report on incentivized social video, virtual currency is pushing consumers to watch more video content in the social space.

Many nonprofits are using social media to create awareness of their cause, raise funds, develop closer connections with existing constituents and engage with new ones.

On April 14, 2011, at The Kreeger Museum in Washington, DC, Jim Gatto delivered a compelling presentation on top social media legal issues targeted to nonprofits. His presentation explored examples of how nonprofits are using social media today, including a focus on virtual goods, virtual currencies and gamification and the associated legal issues. For a copy of his presentation, please click here.

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Sony Settles With Alleged PlayStation 3 Hacker

Sony Computer Entertainment America LLC said Monday it had resolved its breach of contract and copyright infringement suit against alleged PlayStation 3 hacker George Hotz, ending a brief but contentious battle in California.

Virtual Real Estate Selling for Millions

Real estate records come and go with startling frequency and this $US6 million (NZ$7.65 million) sale might not sound like much of a record, until you find out Planet Calypso is a fictional place on the Entropia Universe social gaming site.

Could Virtual Currency Become King in Developing Countries?

Hot on the heals of my post (Brendan Burge) about a virtual currency calledBitCoin, I have uncovered another rather surprising new paradigm. It would seem that increasingly people in Third World countries - what I prefer to call developing countries - are making a living by performing "micro-tasks" in the virtual economy.

PCS Holds World's First International Virtual Easter Egg Hunt

"When we say 'Easter eggs,' we mean just that," says John Barnhart, lead developer at PCS. "The term 'easter egg' has come to mean an intentional hidden message in a computer program. Well, these Easter eggs really are Easter eggs! You know, those boiled chicken ova decorated with food coloring that children hunt for in hopes of scoring some chocolate."

Gamification: CIOs Told to Get On Board

Gamification, the process of applying gaming techniques to the workplace, is set to become a mainstream approach in large organisations, according to analyst firm Gartner.

"Digital Goods" Fraud is Big

The Wall Street Journal reports that digital items within games and social networks accounted for $2.2 billion in sales in 2009, and are expected to account for $6 billion in sales by 2013. Billions more are spent on music and other downloadable digital media.

Baidu Signs with Facebook to Establish a New Social Networking Site

This week, tech and financial blogs were buzzing with the purported Baidu-Facebook deal, announced by Chinese web portal Sohu.com.

By 2015, Over 50% of Organizations Will Gamify Innovation Processes

By 2015, more than 50 percent of organizations that manage innovation processes will gamify those processes, according to Gartner, Inc. By 2014, a gamified service for consumer goods marketing and customer retention will become as important as Facebook, eBay or Amazon, and more than 70 percent of Global 2000 organizations will have at least one gamified application.

GoldRun Leverages Augmented Reality for Mobile Marketing

Vivian Rosenthal once wrote an architecture masters thesis on the intersection of the physical and virtual worlds. Now, the New York entrepreneur is mining that intersection for profit with a start-up that's getting attention for the way it uses augmented reality to create marketing campaigns that end in real-world rewards.

Congressman Edward J. Markey (D-Mass.), a senior member and former chairman of the Energy and Commerce Committee's Communications, Technology and the Internet Subcommittee, sent a letter dated February 8, 2011 to the Federal Trade Commission (FTC) requesting more information about possible consumer protection issues related to "in-app" purchases, particularly relating to kids.
 
The following is excerpt from the letter:

"I am disturbed by news that in-app purchases may be taking advantage of children's lack of understanding when it comes to money and what it means to 'buy' an imaginary game piece on the Web.  Companies shouldn't be able to use Smurfs and snowflakes and zoos as online ATMs pulling money from the pockets of unsuspecting parents.  The use of mobile apps will continue to escalate, which is why it is critical that more is done now to examine these practices. I will continue to closely monitor this issue and look forward to the FTC's response."

Click here for a copy of the letter

It is important for companies to understand the potential legal issues with innovative business models and to ensure clarity so that consumers understand

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

Don't Buy and Sell Pokemon Data In Japan

Japan is going a bit copyright crazy of late. It's not cool to sell customized figures online, it's not cool to rent video games in love hotels, and now, it's apparently not cool to sell Pokémon save data.

Lessons of the NBC Agreement With Battlestar Galactica Fans

NBC / Universal has agreed to let Battlestar Galactica-themed roleplay sims continue in Second Life.   They too had been issued a cease and desist order through a DMCA (Digital Millenium Copyright Act) order.  In their case, the order was arguably even more serious - filed against Linden Lab itself, resulting in the closure of several Battlestar-themed sims and even the confiscation of content..

Wannabe Cool Kids Aim to Game the Web's New Social Scorekeepers

Today, a new generation of VIPs is cultivating coolness through the world of social media. Here, ordinary folks can become "influential" overnight depending on the number and kinds of people who follow them on Twitter or comment on their Facebook pages.

Guitar Hero Video Game Series is Axed by Activision

Activision Blizzard, which makes the Call of Duty and World of Warcraft series, says it's ditching the franchise because "the popularity of music-themed video games has faded".

Social Gaming Market Value to Approach $4 Billion by 2015

The global social gaming market's value will grow by 166 percent from $1.5 billion in 2010 to almost $4 billion by 2015, according to a recent forecast by analyst firm Business Insights.

Visa Acquires Playspan

Pushing into the virtual goods space, payments giant Visa has acquired Playspan, which powers e-commerce for hundreds of online games and virtual worlds, for $190 million.

How Location-Based Services Changed Social Games in Asia

As social gaming on mobile devices continues to grow throughout 2010, so will the number of applications offering location-based services. But will 2011 be the year that location-based social games take off in the U.S?

A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

UC Legend Sues NCAA Over Trading Cards

Oscar Robertson, former University of Cincinnati and National Basketball Association Hall of Fame inductee, has joined a class-action lawsuit against the NCAA for using his name and image without his consent.

CloudCrowd: An Assembly Line for Content

"We're doing to service industries what China did to manufacturing," CloudCrowd CEO Alex Edelstein tells me. CloudCrowd collects tasks from clients--currently translation and proofreading jobs--via its Serv.io site, and then distributes them to waiting workers via a Facebook app.

"CSI" Facebook Game Offers Bonuses for Watching the Show

Thursday night's episode of CSI will have something extra for fans of the show's Facebook game: clues to unlock in-game bonuses.

Hacker Steals $12M Worth of Zynga Poker Chips

29-year-old IT businessman Ashley Mitchell plead guilty to stealing $12 million worth of Zynga Poker chips in a British court yesterday, and is now facing a substantial jail term.

Internet, Social Media Make Their Mark in Egypt's Crisis

The political unrest exploding across the Middle East is just the latest illustration that social media is no longer just for teenagers to tweet about their lives, play Farmville, and post pictures from last weekend's party. Today, it has the potential to shake regimes and drive leaders from power.

Will Social Media Leaks Or Pokes Win Nobel Peace Prize?

Two years ago, the world wondered how a newly-elected president like Barack Obama could qualify and win the Nobel Peace Prize. Even the president questioned the honor. This year, that same president might also question why WikiLeaks is now a candidate for that same distinction.

Fire Up the Avatars - Educational Virtual World Curricula Launches

Today, WiloStar3D LLC announced a joint collaboration with Exeter Township School District- Reading PA, and Manhattan-Ogden USA, Kansas to pilot Avatar Storytellers, an Immersive Learning virtual world curricula for grades 5-7.