Linden Lab settles Bragg lawsuit

Thu Oct 4, 2007 4:06pm PDT

By Adam Reuters

SECOND LIFE, October 4 (Reuters) - Linden Lab said on Thursday it has reached a settlement with Marc Bragg, who sued the company in 2006, claiming the company unfairly terminated his account, causing the loss of his virtual business.

Terms of the settlement, which halted a lawsuit that would have created new legal precedents for virtual worlds, were not disclosed.

Bragg had identified a way to purchase land in Second Life below market rates. After he purchased thousands of U.S. dollars worth of virtual real estate, Linden Lab terminated his account, prompting his lawsuit.

“The parties agree that there were unfortunate disagreements and miscommunications regarding the conduct and behavior by both sides and are pleased to report that Mr. Bragg’s ‘Marc Woebegone’ account, privileges and responsibilities to the Second Life community have been restored,” Linden Lab said in a blog post.

The settlement included Bragg, Linden Research Inc — the formal name of the company that runs Second Life  — and its chief executive, Philip Rosedale.

The lawsuit did force a change in the Second Life terms of service, after a judge ruled in May that the TOS constituted a “contract of adhesion” and was not valid.


 

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