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
Joi Podgorny 