Posted in gaming, kids, marketing, virtual worlds

SOCIAL AND ONLINE GAMES LEGAL ROUND-UP

SPEAKER/S: Mark Methenitis (The Vernon Law Group, PLLC)

10 legal developments for 2010

1. What happen with “Glider?”
– EULA violations can be considered copyright infringement
– don’t be afraid to sue, but only for big ones
– What happen to Worlds.com
– patents case

2. Why should I care if kids are making content
– kids cant enter in a contract
– kids do have a valid copyright that is licensed
– prent is license – get permission
– cc’s are implied consent
– unclear stil
– assent to machinima rules
– does cc to service (xbox live) assent to all games
– user content when there is no parental license

3. You’ll never take me alive COPPA
– 13 is magic number
– must post privacy policy
– regulation on controls PII
– verifiable parental consent
– parents choose whether 3rd
– minimize pii collected and maintain
– COPPA 2.0 (little COPPAs) – extends to 17 and under
– NJ, NC, GA, IL, ME all have separate
– looking more like francise sale regulations, comply with the most stringent state
– COPPA ties into CAN-SPAM
– ecards and forwrd to friend
– requires an opt out list
– might have a issue with inviter and invitee emails

4. what is govt talking about
– COPPA 2.0
– FTC report on explicit content in VW for minors
– recommends age screenign and segregation
– more self-regualtion and possible lang filters
– No news on FTCs look into Dig Rights Management
– concerns over possible regulation on dig dist related to consumer protection
– Always worried about predators

5 Europe rules are different
– Server rules on privacy are complicated
– adequately protected data transfers – encrypted
– have to spell it all out in TOS

6. Cookies in Europe
– 11/24/09 – new rules in force by 2011
– cant use cookies unless the user consents after getting “clear and comprehensive info”
– or stictly necessary to provide services explicity requested by the user
– browser settings can be considered consent not clear

7. Biz model changes when taxed
– all income earned by US companies is taxed when it’s receieved
– only earn income when points are spent, even in wallet system
– income earned outside of US is taxable in both places
– get acct in intl taxes and attourney

8. What do you mean I might be a bank
– virtual currency considered bank
– anythign that can be bought with cash now and then cashed out later or as refund
– besides the poss implications in banking regs, you then may also be uner financial institution privacy regs

9 Hedging currency
– if you are running a global micro-transaction model, you should probably at least look at hedging currency
– buy insurance against price fluctuations
– micro-transaction model may find it especially beneficial b/c transaction volume can be erractic and over a long period of time

10. Zynga Poker
– subject of online gambling investigations
– gambling=
– consideration (payment of something to participate
– chance random element determines outcome
– prize – thing of value to be won
– sweepstakes are governed under gambling law
– take out consideration rule (no purchase ness)
– some states require bonds to insure sweepstakes
– check your rules, dont just cut and paste

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Author:

Joi Podgorny has spent the better part of the past 2 decades working on the bleeding edge of the technology and entertainment industries, from content/brand development and production to leading international support, moderation, community and social teams. Most recently, Joi founded Good People Collective, a consulting agency focused on helping companies and organizations establish, assess and pivot their internal and external cultures to help maximize their potential. She and her team are currently working on an exciting new software project, combining corporate training and virtual reality.

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