What Second Life Can Teach Us About Content Theft

By Jonathan Bailey • Aug 28th, 2008 • Category: Articles, Punditry

second-life.jpgSecond Life has it very difficult when it comes to content theft and copyright issues.

The SL universe is made up of nothing but intellectual property. Everything from the ground you walk on to the people you meet all fall, in one way or another, under the jurisdiction of copyright.

However, the digital nature of this world makes it incredibly easy to copy and rip off other people’s work. Even though there is a permissions system that is designed to prevent that from happening, the fact is that the system is hopelessly broken and even casual users are able to copy “protected” items almost at will.

To make matters even worse, Linden Lab, the creator and maintainer of the “grid” has proven to be almost completely ineffective at copyright enforcement. Though they accept and act on DMCA notices, they require them to be sent via fax and postal mail and only remove in-world items, not those in inventories or other copies of them.

This results in delays and limitations that destroy the process and create a complete inability to actually remove infringing works from the grid completely.

Yet, despite this, SL has a thriving economy with many people earning money and even a living from selling works on the service. This seems to run counter to much of the logic present on the Web.

So what can second life teach Webmasters about copyright infringement, I see a lot of potential lessons.

A Protection-Free Environment

Falls Noel is Here
Creative Commons License photo credit: Ravenelle

For all practical purposes, SL residents are forced to assume that they have no protection of their works and that they can and will be copied regularly. Worse still, there seems to be very little in the way of means for getting them removed after the infringement took place, especially if they are held in inventories.

This has put Second Life creators in a strange position. How do you sell works at a retail price when illegal copies are available for either free or pennies on the dollar? With so little in the way of traditional enforcement to deter people from just copying and running, creators need to find other ways to reach customers.

However, for the most part, they have been successful. Though copying is still rampant and some designers left the service due to these issues, most have stuck around and continue to sell goods, with at least some success.

So how can Webmasters, bloggers and artists working on the Web take advantage of these lessons, I think there are five points to be gleaned.

Lessons Learned

When looking at the relationship between content theft and Second life, the following elements leap out.

  1. DRM Fails: It is as simple as this, DRM does not work. Protecting your content with DRM will only frustrate legitimate users and will not prevent copying. Reliance on DRM is the path to madness.
  2. Community Enforcement Works: The SL community has banded together and protested content theft as well as in reporting and ostracizing people who copy without permission. Since SL is a social site, this has proved as effective, if not more so, than DMCA enforcement.
  3. Most People Are Good: Despite the abundance of free or low-cost illegal goods, most people who buy products in SL still try to buy from legitimate stores. The bigger problem comes when the copycats are able to fool others into thinking that they are the authentic source.
  4. New Works Trump Old Copies: The longer a work has been on the shelf, the more illegal copies of it that will be distributed. Thus, the best designers are constantly turning out new items to ensure that people come to them, not the shady dealers.
  5. Name Recognition is Everything: If people know who you are and trust you, they will come to you. Well-known designers in SL are among the most copied, but continue to receive business because people know to go to them first. In short, advertising and word of mouth mitigate against plagiarism.

While I am almost certain that designers would prefer that the DRM in SL was more effective or that, at the very least, Linden would be quicker and more thorough with its response, they have done reasonably well for themselves despite the rampant copying that exists on the service.

Not All Roses

This isn’t to say that things are great for SL designers. Times are actually very tough on the service right now and have been increasingly difficult for some time.

However, most of the problem stems from factors outside of the service itself including a slowing economy, a decline in the paid user base and new competitors to the service.

Clearly, making a living or even a second income in SL is not as easy as it was during the hype-filled months several years ago, before the desertion of many of the corporate partners, but it is still possible.

If Linden and the citizens of SL can recruit new users and grow the population, not just the hours spent, SL could still rebound and the artists currently established would have an upper hand in the revitalized economy.

Conclusions

Though SL is not perfectly analogous to the Web, there are many similarities and the fact many copyright holders there have been able to make a living despite rampant copying has a great deal to teach everyone.

Though the future of SL is uncertain, as a world based solely upon copyrighted material, it may have far greater impact as an experiment on the nature of how people treat non-material creations.

In short, if the creators of Second Life can survive and thrive, then there is definitely hope for rest of us on the Web. It just may require a change in the way we think.

Related Links

  • Avenue Models: An interesting infringement case in the SL modeling community and a rather humorous way of getting caught.
  • Fresh Baked Goods: A case where a DMCA notice was, according to the article, filed against an original creator instead of an infringer. Excellent look at the Linden DMCA process.
  • Gwyn’s Home: A great discussion about switching to a service economy in SL.

Further Discussion

  • What other lessons are there for Webmasters in SL?
  • What more can SL users do to protect their work and grow their businesses?
  • Is a virtual economy ever going to be free of this element?
Short URL to this Post: http://copybyte.com/z/aj

Jonathan Bailey is The Webmaster and author of Plagiarism Today, which he founded in 2005 as a way to help Webmasters going through content theft problems get accurate information and stay up to date on the rapidly-changing field. He is also a consultant to Webmasters and companies to help them devise practical content protection strategies and develop good copyright policies.
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  • Oh, I just read your article today — great insight! I think your five "lessons learned" are incredibly important; in fact, when you were writing:

    "However, for the most part, they have been successful. Though copying is still rampant and some designers left the service due to these issues, most have stuck around and continue to sell goods, with at least some success."

    ... I was frowning and saying to myself, "well, copying is NOT *that* rampant, since SL still has about a hundred thousand VERY successful content creators". And then you explain why: it's because they have jumped over lesson #1 (there is little they can do about it), not worried overmuch about #2 (sure, they continue to protest loudly and make people aware, as much as possible, that Linden Lab's enforcement of DMCA is less than stellar), but mostly focused on #3, #4 and #5 — very aggressively so.

    Content has never been so good in SL, it seems to improve from week to week, and it is being released at an astonishing rate. There is little fear that "copycats are able to fool others in being genuine": they act in "rings", knowing fully well that they have to use a large base of accounts, set up a shop quickly, sell as much as possible, get banned after a few days, and start from scratch. This means that to make real money out of stolen intellectual property, you have to act very fast, have a huge organisation (with thousands of ready avatars), and be constantly out there looking for new content to copy and putting it quickly on your shops and attracting customers. This surely pays off for them — or they wouldn't bother! — but overall, it's a *huge* effort to keep the operation afloat. In fact, most of those "piracy rings" would be *far* better off if they simply paid content creators a fee to release cheap content and get some added value by reselling it through their network...

    Although those piracy rings definitely exist (and I have seen them in action; they're really well organised, and even copy content from industry giants, real life companies that set up shop in SL, and *get away with it*, mostly by apologising and removing the offending content — and starting from scratch somewhere else), I'd say that *most* pirated content is quite "casual": people using tools to copy content for free for themselves and their friends. Sure, sometimes whole *communities* get free (or cheap) stolen content that way, and we'd be talking about thousands of users, but not millions. And many delude the public by selling them "business box packages" — an alleged 'licensing agreement' to redistribute content that was actually often stolen. That is actually a way safer way: these "business box packages" are very expensive, and they only need to sell a few before getting their account shut down and start from scratch with a new account. In the mean time, a lot of innocent residents are happily selling the stolen content from those "packs" without having a clue of what they're doing — and get flagged, and banned, often without really understanding *why*.

    How big is this "black market economy"? I really cannot say. I just believe that the "market stagnation" does not come either from the world-wide recession, nor from the copied content, not even from people's unwillingness to buy as much as before, but truly because there is too much supply for the current size of the market, and content creators have not been used to be aggressive promoters of their own content (I wrote about it a few months ago, http://gwynethllewelyn.net/2008/10/13/the-hard-...). Your rules 3, 4 and 5 would definitely explain why most of the content creators following those rules are still around, still making a good turnaround, and in general happy about their sales. It's mostly a fringe group that is not used to a saturated market (one where supply exceeds the ability of the market to absorb all that content) and never thought about content creation in SL to be an "aggressive business" that are suffering most; and they tend to put the blame everywhere but on their own inability to deal with the problem.

    After all, *most* content creators in SL are not business managers. They're artists.
  • Thank you very much for your insights and additions, I appreciate it. I don't play SL myself, so I have to lean on those, like yourself, that do.

    It is interesting about the piracy rings, in that regard they seem to function a great deal like spam blogs. Setting up shop quickly.opening thousands of sites, building rank fast and then getting shut down and banned. It's a devious operation on both accounts.

    Thank you again for all of your input, it is very enlightening!
  • You're right, it's exactly like spam blogs!! Excellent analogy!
  • Jonathan,
    Just to let you know, LL did remove the alleged infringed upon items from our shops AND our inventories, though not from our customers. They took our SLX and OnRez Boxes that did have the items (the ~*FBG*~ Jelly Tots Necklace Sets) inside them. This happened even though we disabled all the vendors and disabled sales of the items on SLX and OnRez by De-listing. We have contacted LL for information, requesting a copy of the original DMCA, but LL has stated it is against their privacy policy to release the information to us, meanwhile the individual(s) who filed have all of our information. We have counter-notified on the DMCA, 6 business days ago now, and we await word as to whether this will be going any further. I will be updating my blog shortly with more information should we have any about the process as carried out by LL.
  • Thank you for the update. I've heard from several people that LL does not remove from inventories so this is a bit of a surprise to me. If you've filed a counternotice, your content should be restored in 10-14 business days unless they file suit, which is highly unlikely. I'd wager that your items will be restored and that will be the end of it.

    Thank you for letting me know about both the privacy issues and the inventory ones, I will have to research both of these items further when things calm down.
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