Virtual Goods Retailers Sue for Trademark Infringement in Second Life

SAN FRANCISCO —Eros, a merchant of adult products, and Shannon Grei, who sells clothes for avatars in the virtual world, have filed a class-action compliant against Second Life owner Linden Lab for violation the intellectual property rights.

The complaint, filed yesterday at the U.S. District Court in San Francisco, alleges that Linden Lab violates the rights of proprietors of virtual content within Second Life directly and secondarily by providing the tools for infringing, being negligent about its policies and profiting from piracy.

Eros is a seller of erotic items on Second Life, including its SexGen line of products, with a store within Second Life — which Linden Labs charges rent to maintain.

The company Shannon Grei operates, known in Second Life as Munchflower Zaius, sells online “skins” or clothing for avatars in Second Life.

Second Life also profits from the uploading of content — including pirated material — and online marketplace for Second Life good, XstreetSL, according to the suit.

Linden Lab operates LindeX, which allows the online currency within Second Life known as Linden Dollars to be exchanged for U.S. dollars for a fee of 3.5 percent per transaction.

The exchange of real-world money allows for true commercial activities to flourish within Second Life, the complaint states, including that of Eros, which counts more than 100,000 customers in the virtual world.

While the Second Life Grid is employed as a digital rights management program, the complaint alleges that “Linden Labs conducts little supervision or enforcement to insure that such content copying is eliminated, minimized, or detected,” as it does not ban users for uploading or selling copied content.

The Digital Millennium Copyright Act is described as ineffective and sometimes counter-productive because takedown notices sent to Second Life pirates can cancel their accounts and create a new one to re-upload the content.

In addition, the suit claims some infringers will counter-file, thus leading to the release of personal information. Other infringers will threaten rights-holding merchants with the release of the stolen content if file a DMCA claim.

If a pirated is successfully taken down, the suit alleges Linden Labs will restore access to the content with public outcry.

When Second Life users search for a product, they see trademarked stores and products, as well as products that counterfeited. The suit compares “the manner in which this has occurred is akin to the knockoff handbags and purses sold near Canal Street in New York City.

Eros claims the cheap knockoff of products bearing the SexGen brand causes harm by creating confusion among consumers and is destroying the reputation of the company.

This is the second lawsuit from Eros founder and CEO Kevin Alderman involving Second Life. In March 2008, Alderman filed a complaint against Robert Leatherwood, known online as Volkov Catteneo, that allegedly used Second Life to sell unauthorized copies of a software program developed by Alderman.

The suit was settled with Leatherwood agreeing not to sell or copy any products owned by Eros. He agreed also to not help anyone copy and Eros products, and to turn over the email addresses of anyone that had access to the Catteneo avatar.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

More Conservative Organizations Distance Themselves From Anti-Porn Project 2025

A growing list of conservative groups which had formerly endorsed Project 2025 — which calls for the total criminalization of adult content production and distribution — have reportedly distanced themselves from the blueprint, following Donald Trump’s claims that he disagrees with an unspecified number of its positions.

BranditScan Unveils Protection Plan for Adult Studios

BranditScan has launched a new content protection plan tailored specifically for adult studios.

CAM4 Debuts Weekly 'Skyy Knox's CAM Crawl' Livestream

CAM4 is launching "Skyy Knox’s CAM Crawl," a new livestream running every Sunday at 3 p.m. PDT.

Texas Judge Pauses AG Ken Paxton's Aylo Lawsuit Until SCOTUS Decision

A Texas district judge granted a request Wednesday to pause proceedings in the lawsuit filed by Attorney General Ken Paxton against Aylo over Pornhub’s alleged failure to implement Texas’ controversial age verification requirements, pending the outcome of the Free Speech Coalition-led lawsuit against Paxton, which will be heard by the Supreme Court during the next term.

Author of UN Report Recommending Worldwide Criminalization of Sex Work, Porn to Speak at NCOSE Summit

Jordanian activist Reem Alsalem, a special rapporteur on violence against women and girls at the United Nations Human Rights Council who recently issued a controversial report recommending that governments abolish all forms of sex work, including porn, will speak at anti-porn lobby NCOSE’s 2024 summit in August.

Spicey AI Voice Chat Platform Launches

Spicey AI, a platform that uses artificial intelligence to create interactive voice messages from chatbots based on adult performers, has launched.

Derek Hay Sentencing Hearing: Performers Give Impact Statements

The first day of the sentencing hearing for LA Direct Models’ Derek Hay, who pleaded guilty in May to one charge of conspiracy to commit pandering and a charge of perjury, took place in Los Angeles Wednesday.

Utherverse to Host 8th Annual VirtualCon in September

Virtual reality and metaverse technology company Utherverse will hold the eighth edition of its annual virtual conference, VirtualCon, from Sept. 26-28.

Pornhub Shuts Down Access in Nebraska Over Age Verification

Aylo began blocking access to Pornhub in Nebraska on Monday, in anticipation of the state’s new age verification law — one of many such bills promoted by religious conservatives around the country — which is scheduled to go into effect Thursday.

FeelMe AI Launches 3 New Subscription Tiers

FeelMe AI has launched three new subscription levels, allowing users to connect compatible Kiiroo sex toys to their videos for interactive solo play.

Show More