As an Internet lawyer I struggle with ownership of various forms of new virtual property because, well, the courts do. A California court recently followed a Virginia appellate decision in finding that domain names are not personal property but a form of contract right. This carries with it some pretty big implications. I recently saw a comment on the main Internet Law blog asking about the ownership of accounts in virtual worlds. Of course, they are covered by the contract between the site and the member. So most would conclude that those contracts that prohibit the transfer, sale or other claim of ownership right in an account would be enforceable. And up to now they have been.
But as an Internet lawyer the question comes to my mind...under what circumstances might the future dictate a different outcome? Could states pass laws prohibiting the waiver of rights in virtual property as a per se "unconscionable" provision. Will courts pursue this path? As the value of the work, effort and creative endeavors of members of virtual worlds grow, will the day come when "improvements" to an online virtual property creates legal enforceable rights in the member? It's surely to be tested in the Courts in the coming years. More than one Internet lawyer will be staying busy trying to figure out where this type of issue should end up, and then finding the road to that end.