Law Virtual Worlds Internet

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The Law ofVirtual Worldsand Internet

Social Networks

ANDREW SPARROW

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Contents

About the Author ix

Praise for Andrew Sparrows Previous Books xi

Chapter 1 Introduction: The Advent of the Avatar 1

Chapter 2 Entering into the Virtual World and v-commerce

Contract Formation 52.1 The Geneology of Virtual Worlds and Social Networks 5

2.2 Creating an Avatar and Navigating the Virtual World 9

2.3 How Contract Law enters Virtual Worlds and Social

Networks 9

2.4 Capacity 21

Chapter 3 Legal Terms and Conditions Governing Participation

in Virtual Worlds 23

3.1 How to Ensure Legal Terms Govern the In-world Experience 24

3.2 Example Clauses for a Virtual World Service 243.3 Legal Terms and Conditions Governing Third Party

Virtual Retailers Featured In-world 35

Chapter 4 The Minimum Content the Law Requires for Virtual

World and Social Network Websites 41

4.1 The Electronic Commerce (EC Directive) Regulations 2002 41

4.2 Overview 41

4.3 The Regulations in Detail 43

Chapter 5 Protecting and Exploiting Intellectual PropertyRights in Virtual Worlds and Social Networks 53

5.1 Background 53

5.2 Copyright in Virtual Worlds 55

5.3 The Convergence of Media and Technology and How

that Impacts Copyright in Virtual Worlds 59

5.4 Copyright in the Creative Inspiration for Virtual Worlds 67

5.5 Copyright Liability in Virtual Worlds Issues for Virtual

World Service Providers 71

5.6 Case Law on Distributing Media Content over the

Internet Without Consent 73

5.7 The Copyright and Related Rights Regulations 2003 and

Their Application to Virtual Worlds 78

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vi T he L aw o f Vi r tu al Wo r ld s an d In te rn et S oc ia l Ne tw or ks

5.8 Trademark in Internet Social Networks and Virtual Worlds 90

5.9 Internet Social Network and Virtual World Trademark

Use Policies 94

5.10 Creating in-world Software Platforms for use by other

Inhabitants 95

5.11 Controllingthe use of the Virtual World OperatorsBranding Material 98

5.12 Licensing Digital Content 99

5.13 The Rise of Social Networking Websites and User

Generated Content 100

5.14 Creative Commons 102

5.15 Image Rights in Virtual Worlds and Social Networks 107

5.16 Case Law relating to Virtual World and Social Network

Intellectual Property Rights 111

Chapter 6 Marketing, Promotion and Advertising of Internet

Social Networks and Virtual Worlds 121

6.1 Background 121

6.2 Internet Social Networks and Media Audience Engagement 122

6.3 The Privacy and Electronic Communications

(EC Directive) Regulations 2003 123

6.4 In-world Advertising and Marketing 130

Chapter 7 Protecting Personal Privacy in Virtual Worlds and

Social Networks 1517.1 Background 151

7.2 The Data Protection Act 1998 153

7.3 Data Processing Principles 155

7.4 Database Right and the Virtual World or Social Network 165

7.5 Virtual World and Social Network Privacy Policies 167

7.6 The Vulnerability of Social Networks and Virtual Worlds

to Computer Hacking 170

7.7 The Data Retention (EC Directive) Regulations 2009 171

7.8 Privacy and In-World Behavioural Targeting 173

Chapter 8 The Distance Selling Regulations and Sales Through

Virtual Worlds 177

8.1 Background 177

8.2 The Consumer Protection (Contracts Concluded by

Means of Distance Communication) Regulations 2000

and How They Relate to Virtual Worlds 178

8.3 The Consumer Protection (Distance Selling)

(Amendments) Regulations 2005 182

8.4 Guidance For The Distance Selling Regulations 183

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viiC on te n t s

Chapter 9 Agreements between Virtual Worlds or Social

Networks and Infrastructure Providers 185

9.1 Background 185

9.2 The In-world Avatar Design and Development Agreement 186

9.3 The Virtual World Hosting Agreement 191

Chapter 10 Strategic Agreements between Virtual Worlds and

Aggregators of the Service 195

10.1 Background 195

10.2 Linking and Revenue Share Agreement (The Click

Through Revenue Deal) 196

10.3 The Virtual World Environment Licence Agreement 199

Chapter 11 Protecting Corporate and Individual Reputations in

Virtual Worlds and Social Networks 20311.1 Background 203

11.2 The Defamation Act 1996 205

11.3 Case Law Relating to Defamation and Internet Use 215

11.4 The Liability or Otherwise of Virtual World or Social

Network Operators and Balancing the Defamation Act

1996 and the Electronic Commerce Regulations 2002 222

11.5 Drawing Together How the Courts View the Process of

Caching and other Internet Techniques 225

Chapter 12 Disability Discrimination Considerations withVirtual Worlds and Social Networks 229

12.1 The Disability Discrimination Act 1995 and Web

Accessibility Best Practice 229

Chapter 13 Employment Law Issues and Employees

Participation in Virtual Worlds 233

Bibliography 237

Index 239