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The Lawbringer: China, forced labor, and why we must stop buying gold
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? Gold selling is a multi-billion dollar industry that spans the globe, with a healthy portion of in-game currency sales originating from China. It's a cheap operation to start up -- all you need is cheap labor, some computers, a PayPal account, and a copy of World of Warcraft. The overhead is low and the payoff is big because the demand is present for the supply. People have a perceived need to buy gold, so more people sell gold, which allows the market to grow. It won't stop, either, as tradable virtual currency from all types of games hit the gray market. What happens when an industry with low overheads becomes too profitable? What happens when a relatively simple setup like gold farming goes from the quaintness of cottage industry to a virtual currency-fueled industrial revolution? People start getting ideas when money is sitting there on the table, ready and waiting to be snatched up by the stalwart businessman. Combine that sentiment with the corruption and profit motives of institutions and a labor force that is for all intents and purposes free, and you get the sad tale of prisoners in China and the people in charge.
Chinese prisoners forced to farm gold
The Guardian ran a heartrending story yesterday about prisoners in China forced to farm gold on behalf of their prison bosses. After spending their day doing backbreaking labor, they would spend the evenings farming gold in games like World of Warcraft. According to the report, it's likely that the prison bosses made more money from the sales of these online currencies than they did even from prisoners' manual labor. If prisoners were unable to produce enough gold during their shift, they would be physically punished. "They would make me stand with my hands raised in the air and after I returned to my dormitory they would beat me with plastic pipes. We kept playing until we could barely see things," said one prisoner in the report. Blizzard's been fighting gold farming practices for a long time; we'll likely never see "legal" gold selling if Blizzard can doing anything about it. This story illustrates one more reason you should not support these services. Note: Comments on this post will be closely monitored. Racial insults, personal attacks or any of that nonsense will be deleted. Repeat offenders will be banned.
Chinese prisoners forced to farm MMOs for cash
Doing hard time in China may result in more than just back-breaking labor -- you may be called upon to join the country's growing legion of gold farmers as well. A report at Guardian.co.uk exposed an unusual side of Chinese prisons, painting a picture of gaming inmates who had to meet farming quotas in MMOs or be beaten. One prisoner said that this practice was more lucrative for the prisons than other products of forced labor: "Prison bosses made more money forcing inmates to play games than they do forcing people to do manual labour. There were 300 prisoners forced to play games. We worked 12-hour shifts in the camp. I heard them say they could earn 5,000-6,000rmb [£470-570] a day. We didn't see any of the money. The computers were never turned off. If I couldn't complete my work quota, they would punish me physically. They would make me stand with my hands raised in the air and after I returned to my dormitory they would beat me with plastic pipes. We kept playing until we could barely see things." However, prison officials denied that such activities took place. One official commented, "We do not allow our prisoners to have any contact with the outside world. If they were playing these online games they could easily communicate with other people. We would never allow that." Billions in revenue have resulted from China's virtual gold trade, which is largely unregulated. Guardian.co.uk estimates that the country holds 80% of the world's gold farming population.
FBI raids University of Michigan apartment over possible WoW fraud
A University of Michigan student apartment became the focus of a recent investigation by the FBI, which conducted a raid on March 30th over "potentially fraudulent sales or purchases of virtual currency that people use to advance in the popular online role-playing game World of Warcraft." While the FBI did not make any arrests, it did confiscate several items, including computers, video game equipment, and credit cards. The Bureau is checking out whether one or both of the students were involved in a fraudulent scheme to buy or sell virtual gold, and the agency is looking for online transaction records with various online banks and websites. The two students who share the apartment claim that they do not play WoW and are confident that they are innocent. One of the unnamed students commented: "They thought we were involved in some kind of fraud. I'm pretty sure they have the wrong people, but they took all my stuff."
The Lawbringer: Mailbag 2.0
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? I love getting emails with questions in them! Incidentally, people also love mailbags. Right? Right? Of course you do. Also, based on my images, can you tell that I've been leveling through Grizzly Hills? After the last two weeks of gold selling/hacking and crazy currency discussions, I found my email littered with questions that I had neglected. At the end of last month I also ran a mailbag feature, but some of these questions were so fun and provoking that I had to answer them publicly. One interesting thing about legal questions and answers is that you're obviously not getting the whole answer, because there are a million and one factors that go into questions and answers in the legal world. Rather, you're getting the beginnings of a concept that you might want to further your knowledge of. Fun times! Learning is fun! Let's learn together. If you have a question for the column, please email me at mat@wowinsider.com, and include a subject with "Lawbringer Question" or something easily categorized/sorted like that!
The Lawbringer: Fighting the gold fight -- how the strategy must change
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? Last week on The Lawbringer, I introduced you to the world as it is, a battlefield littered with the corpses of stolen accounts, inconvenienced players, and a priceless reputation on the line. This week, we look at concrete solutions to actually helping the gold selling system wind down and remove many of the hurdles that instant gratification with purchasing gold sets up for Blizzard. You might have mixed and angry reactions to what I'm going to talk about, but do give me the benefit of the doubt. I think being open-minded might win this fight. So what can Blizzard do besides selling its own currency? Here are my suggestions for the first steps that Blizzard needs to take in the new war against gold selling.
The Lawbringer: Fighting the gold fight -- the world as it is
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? The Lawbringer has in the past been used as a personal launching pad for some of the more out-there or esoteric ideas that I have in regards to the World of Warcraft and virtual currency in general. You guys seem to love it, and there's always plenty of great discussion about these ideas. For the next two weeks, I want to introduce you to my thoughts on how Blizzard should be attacking gold sellers and, at the same time, working to remove some of the content gates that gold has erected in the MMO we all love. This week, we will set up the story and the history of it all, and next week, we will talk about hard conclusions. Gold selling isn't going away as long as fungible and liquid currency exists in MMOs. Gold is "fungible" because it can be exchanged for something exactly like it, at a 1:1 ratio -- gold is gold. Gold is also liquid, as it can be used and exchanged for other goods or services. Short of Blizzard's getting rid of this type of currency altogether or selling its own currency for a cheaper price than gold sellers can furnish it, people will sell gold and items that can be traded. Blizzard has shown that it has the guts to go after gold selling as an industry but has so far failed in scope to bring down the snake that slowly poisons everything it has worked to build. As sellers become hackers, and as hacking chips away at the good will, reputation, and stability of the game we love to play and the company we love to patronize, there has never been a more urgent time to fight the gold fight. The strategy needs to change from focusing on the people who sell gold to a combination of those that sell and the gold itself.
EVE ISK buyers outed in database leak
Beware, EVE Online ISK buyers! Big brother is watching you. Actually, the whole internet is watching you too, thanks to an insider leak at the IskBank.com currency-trading site. EVEnews24.com, a fan-run news site dedicated to the goings-on in and around CCP's New Eden, has published a huge list of virtual currency buyers that earned IskBank some $290,000 between April 2010 and March 4th, 2011. As you might expect, there's a colossal discussion thread on the official EVE forums, and CCP has issued a brief comment indicating its awareness of the situation. Thus far there has been no mention of potential action against violators of the the game's EULA, but EVEnews24 has posted some reactions from a few of the formerly anonymous buyers. EVEnews24's anonymous source apparently provided a fairly complete record of IskBank's customer and order database, including names and dates, products purchased, and email and IP addresses. EVEnews24 is withholding the personal information of the affected parties but has published a complete list of in-game character names.
Paypal accounts for World of Warcraft gold sellers now on notice
Blizzard recently took action to hit World of Warcraft gold sellers right where it hurts: Their wallets. Well, the online services they use to transfer intangible funds from other people's wallets to their wallets, but you know what we mean. The developer has successfully petitioned Paypal to issue notices to the major names in gold selling, warning them that if they didn't stop selling WoW's virtual currency for non-virtual currency, their accounts would be irreversibly suspended. Paypal appears to accept Blizzard's argument that these sales represent an intellectual property violation -- though this area has proven nebulous in the past, as suggested by the WoW Glider lawsuit from last year. Regardless, we hope they find some success with this venture. We don't understand why people can't earn gold the honest way: By buying everything off of the auction house and selling it back for three times its original price.
Blizzard strikes gold sellers with Paypal notices
Last week, Blizzard sent out strongly worded complaints to Paypal, accusing many gold-selling companies and resellers of "intellectual properties violations" for selling World of Warcraft goods. After receiving these complaints, Paypal sent notices off to the gold sellers Blizzard had complaints against, stating that if these activities continued through their websites and the Paypal service, Paypal would revoke their ability to use the popular payment site as a payment option. Here is Paypal's letter to the gold sellers: You were reported to PayPal as an Intellectual Properties violation by Blizzard Entertainment Inc. for the sale of World of Warcraft Merchandise. If you feel your sales do not infringe upon the intellectual property rights of the Reporting Party, please complette the attached Objection to Infringement Report by January 21, 2011. The completed form should be faxed to the attention of the Acceptable Use Policy Department at [number removed] or emailed to [email removed]. Should you choose not to object to the report, you will be required to remove all World of Warcraft Merchandise from the website [url removed] in order to comply with the Acceptable Use Policy. What's very interesting is that Blizzard is claiming intellectual property violations in the face of the most recent decision in the Glider case. Where Blizzard lost on intellectual property concerns under the EULA, they could have a better shot over their game assets being sold, if somehow it ever went to court. Still, Paypal is the easiest route to go for Blizzard's plan of attack against gold sellers, since most of them are run outside of the country. Suffice to say, it's nice to see some action being taken against gold selling.
The Perfect Ten: The 10 people you meet in MMO hell
"Hell is other people," the jaunty Jean-Paul Sartre wrote in No Exit. In this play, three characters are locked together in a small room, where they gradually realize that they are there to torment each other for all of eternity. Plus, there are no toilets, and that's going to get unpleasant fast. It's fun for the whole family -- get your tickets today! We've all met folks in game who leave an unpleasant taste in our mouths for a long time after. With the all of the good of social games comes the seedy underbelly (henceforth referred to as "Camden, New Jersey"), and for every stellar soul you connect with, there is another lying in wait to destroy your day. If MMO heaven is full of supportive guildies and grammatically correct chat channels, then think of MMO hell as a pick-up group gone horribly awry as you run a dungeon that never ends, a dungeon you can never quit. While we'd never voluntarily go to MMO hell, it was inevitable that some of its denizens have escaped to walk amongst us in our games even today. Who are these nefarious devils? Hit the jump to find out!
Study finds that 75% of online gamers purchase virtual goods
Are you one of the steadfast, stalwart gamers who absolutely refuses to shell out money on cash shops, microtransactions and virtual services apart from subscriptions? If so, you're in the minority -- a study by VGMarket showed that three out of every four online gamers purchased a virtual good in the past year. This shouldn't come as a surprise, however. The survey isn't strictly indicative of MMORPG gamers; it was taken from over 2,200 players who were either part of PlaySpan Marketplace, Facebook, or purchasers of Ultimate Game Cards. Still, the results are fascinating, as a whopping 64% admitted to spending money on cash-shop items at least once a month, with 9% going so far as paying for virtual goods on a daily basis. Other statistics from the survey are equally interesting. PC gamers spent an average of $37 a year on virtual goods, and PayPal is by far the most popular method of payment. Oh, and the most-purchased good? In-game currency. (There, that shouldn't be too controversial, right? Right?) You can read the full survey results over at VentureBeat!
The Daily Grind: Would you play a game with no economy?
In the bullet-point list of most every MMO on the market, a "functioning in-game economy" comes as a standard feature, much like AM/FM radio and power steering, er, I mean like PvP and spacebar-as-jump-button. Being able to buy and sell goods and the occasional service between players adds a layer of depth and strategy to the game world that -- for once -- isn't solely about killing something. A few select players even eschew the rest of the game to focus on playing the auction house or crafting goods to sell. Unfortunately, like the Force and the moon, in-game economies always come with a dark side. Economies are tricky to balance, and the longer a game runs, the higher the risk for it to spiral out of control due to mudflation. Late-comers to the game often find themselves at an economic disadvantage in comparison to extremely wealthy veterans. Economies also need the support of a lot of desirable things to sell and a useful interface through which to do it (such as an auction house), creating a lot of work for the dev team. And, of course, with any economy comes the headache of gold farming and selling. Out of curiosity, would you play a game with no real economy? Some games such as Free Realms and Guild Wars de-emphasize their economies greatly in favor of other parts of the game. Do you find MMO economies to be more of a bother than a blessing? If a fun game came out that lacked this "essential" feature, would it be a deal-breaker?
TERA's Patrick Wyatt talks security, RMT
The guys over at TERAHispano have scored an interesting interview with En Masse Entertainment COO Patrick Wyatt. The former NCsoft executive talks at length about everything from possible RMT options, to account security, to private servers and potential in-game griefing in TERA. In light of the much-publicized problems with bots, gold-selling, and account theft in Aion, these issues are clearly on the minds of TERA fans as En Masse works to localize Bluehole Studio's open world fantasy MMORPG for the western markets. "Ultimately, if users want to purchase gold, they'll find a way to do it. The U.S. "drug war" hasn't stopped people from buying drugs, it merely causes fluctuations in the price of those drugs and the amount of crime and violence that people are willing to commit to buy and sell drugs. If we only try to attack the problem of gold farming by detecting and blocking the gold farmers we will not be effective in stopping that behavior and all of the problems that go with it, like chat-spamming to advertise gold-buying sites, purchase fraud, phishing, and account theft," Wyatt says. He goes on to list EVE Online's PLEX system and Everquest's Vox and Bazaar secondary market experiments as potential "interesting solutions." Check out TERAHispano for the full interview as well a companion gameplay-centric interview with Producer Sam Kim.
Lost Pages of Taborea: Banhammer time
For a while now, Frogster has been fiddling with how a player can buy diamonds to later trade and sell in the auction house. Ever so slowly, they had to implement more and more restrictions because of credit fraud and gold sellers. Those restrictions came in the form of what you could no longer use to buy tradable diamonds, until there was almost no other way except to purchase game cards from select retailers. Now it seems the ongoing problem has come to a head with the announcement that Runes of Magic has temporarily turned off the trading of diamonds for gold completely. While it certainly doesn't paint RoM in a good light and may look like it has marred their great track record, gold selling issues are nothing exclusive to the game. Bots and gold spam are something that many MMOs eventually deal with and it's a positive sign that the developers are working on it. Maybe they're taking a queue from Aion's RMT videos or maybe they had it planned for a long time, but RoM has recently gone after the player-side of the problem by laying down the banhammer.
The Diamond trade gets destroyed in Runes of Magic
There's an understandable problem with selling game currency in subscription games, where it's generally considered verboten for good reason. While some subscription games will sell you things in addition to the monthly fee, there's a general sense that you should earn your advantages. But in free-to-play games that have a cash shop allowing players to purchase items directly... well, the very idea of gold selling seems kind of silly. But it can happen, and Runes of Magic has experienced a bit of a problem of late with the trade of Diamonds (their cash shop currency) for gold. The game has traditionally treated the currencies as interchangeable insofar as players with lots of Diamonds and not enough gold could sell their excess to other players. Unfortunately, the current spate of RMT activities have called for draconian measures: they've taken away the ability to trade Diamonds for gold. They've also temporarily removed the ability to send gold through the mail. The official announcement stresses that this is a temporary measure to combat unacceptable behavior. While less gold spam is a good thing, fewer features are a negative, so this new is a mixed bag for Runes of Magic players.
The Lawbringer: Gold sellers are criminals!
Welcome to The Lawbringer, WoW.com's weekly tour of the intersection between law and the World of Warcraft. I'm a third-year law student acting as your crossing guard, trying desperately to avoid getting run over myself. All our discussions about contract law and the EULA have been dealing with civil law (civil law as in the opposite of criminal law, not the opposite of common law). As has been pointed out before, selling gold is a violation of the Terms of Use and End User License Agreement. What can American courts do to someone who breaches a contract? For that answer, we have to look at the history of merry olde England. Fire up the DeLorean, Marty! Medieval England (the time period from which law is still recovering) had a bifurcated justice system. If someone had violated a contract, the aggrieved party could sue in a court of law for damages. These damages could be the amount of money necessary to put the victim in the position in which they were before the contract was made. (Example: I promise to mow your lawn, and you pay me $20 ahead of time. I don't mow your lawn; you can sue me for the $20.) Depending on the case, the victim might receive the amount of money necessary to put him in the position in which he would have been had the contract been followed. (Example: same scenario, except not only do I have to pay you back the $20, I have to pay $20 to get someone else to mow the yard.) This is just fine when a problem can be resolved with money.
The Lawbringer: Interfering with gold farmers
Welcome to the Lawbringer, your weekly tour of the intersection between law and Warcraft. I am a third year law student specializing in intellectual property law acting as your crossing guard, trying desperately not to get run over myself. So last week we engaged in some speculation about how WoW might change if Blizzard permitted gold sales. Personally, I think that the damage to the game economy and culture would be far more damaging than any legal issues that might develop, but it's worth noting that legal issues could easily develop. As for the here and now, certain facts about gold selling remain: Gold selling is against the terms of both the North American and European EULA and TOU. Gold selling is performed by a number of companies, many of them located outside the Unites States. Gold sellers acquire their gold through obnoxious farming behaviors and account hacking. Gold sellers exist because of gold buyers. Given all this, what can we as players do to stop these locusts? The biggest thing is obviously to NOT buy gold. I really don't think this point can be emphasized enough. Beyond that though, we may be able to take advantage of a legal theory known as tortious interference in contract.
The Lawbringer: Legal gold sales? Not a Blizzard's chance in Hell
Welcome to The Lawbringer, wow.com's weekly feature on the intersection between World of Warcraft and the Law. I am a third year law student acting as your crossing guard and trying not to get run over myself. As an introduction to our promised discussion on gold farming, I wanted to address an idea that's been circulating in the WoW blogosphere. There has been some talk that Blizzard could solve the problem of gold farming and hacked accounts in one fell swoop by simply selling the gold themselves. It's an attractive idea on its face, as some feel as though Blizzard's current ban on Real Money Transaction for gold ("RMT") is nothing but an ill advised Prohibition. Permit people to buy gold through Blizzard, the argument goes, and the keyloggers, site spoofers, hackers, and spammers will go back to the rock from under which they came, just like the Mafia disappeared after alcohol sales were permitted in 1933. Oh wait... The obvious problems have been pointed out before, including: rich brats will have more advantages over folks with jobs and bills; inflation will cause Azeroth to resemble Zimbabwe, the Weimar Republic, or -- God forbid -- Norrath; players will be forced to pay up to stay competitive; WoW-clone MMOs will follow Blizzard's lead, leaving players with few refuges from RMT markets; Blizzard devs will be "encouraged" to design the game around acquiring and spending more gold; players who can't remember website names will still think "www.l3g!t-w0rlduvw0wcr@ft-g0ld.c0m" is Blizzard's website and download keyloggers, etc. Some don't believe this parade of horribles is enough to discourage Blizzard from creating this quixotic market. To the doubters, let me add some legal issues that would affect Blizzard and players, namely: property rights, taxation, and investment advice. Any of that sound like improvements to you?
[1.Local]: The legendary Frostingmourne
Reader comments -- ahh, yes, the juicy goodness following a meaty post. [1.Local] ducks past the swinging doors to see what readers have been chatting about in the back room over the past week. Looking for sweet, sweet sarcasm? [1.Local] is full of smart alecs. You'll get a good taste of sarcasm in this week's sampling of comments, as well as pointers to WoW's hottest topics ... Oh, and a virtual wave of reader approval. But before we dig in, how about seconds of this week's WoW-themed dessert? MusedMoose: Dude! It's the legendary sword Frostingmourne, weapon of the Lick King! ... I'll go now. Us, too. Let's wipe off the frosting and head past the jump for more of the week's comments.
