A great article on the Digital Urban blog addresses the issue of copyright and IP rights in online worlds, correctly citing the gray area wherein it's hard to tell how real-world ownership rights translate to the realm of ones and zeroes. The article cites some Nike trainer sneakers the author received as a gift in Second Life, which were user-created, without any thought of permission to use the almighty swoosh.

While, as the article notes, some brands do have legitimate Second Life presences, others don't -- and it's as of yet unclear what ramifications that might have in a world where goods, logos and symbols can be copied, mass-produced, swapped and sold as readily as typing text. It's a good question -- what legal issues might loom around the corner for "fake" goods in a world where nothing is "real" in the traditional sense?

Moreover, the article continues:

Along similar lines does reconstructing the built environment in virtual worlds infringe copyright on use of branding with say importing a Woolworth's retail unit to communicate built form? Issues of copyright of geographic data are however perhaps minor in terms of the blatant cloning of real world goods such as trainers, cars and clothing in Second Life.

The looming threat of legal action is however worrying, if we can copy real world objects and use them virtually surely it is flattering to the company and not an issue of future court proceedings?

Though clearly one could infer that the author's right -- that his example, Nike, might appreciate a prevalent brand presence in virtual worlds without any effort or expense on their part -- it's likely that the actual sale of branded virtual goods is set to increase. If Nike rival Adidas were to begin earning real dollars selling virtual sneakers, would Nike continue to enjoy the free publicity when they could actually be earning money for it?

Not to mention that counterfeiting isn't restricted to virtual versions of real-world brands. I would argue that Blizzard doesn't find, say, gold farming or counterfeiting items in World of Warcraft "flattering", but many have suggested that WoW and online games should sell gold, rather than oppose the sale thereof.

[Via Digital Urban]