ToS Changes: The “Desura connection” and a personal perspective

Upset over LL’s re-wording to their Terms of Service continues, with high-profile reports of some content creators of long standing opting to withdraw their content from SL, and another third-party content supplier forbidding the use of their items within Second Life.

Elsewhere, people are starting to point to a “Desura connection”, with Nalates Urriah speculating that the re-wording might be in connection with the Lab wishing to provide the means for SL content creators to sell content through Desura.

A possible “Desura connection” was actually first mooted in passing by Kuurus in a September 15th comment on this blog, after I obtained a statement on the ToS changes from the Lab. Kurrus’ comment in turn prompted me to take another look at Desura’s former Terms of Use (replaced at the end of August by LL’s ToS, but still available via  things like the wayback machine), to see how that handled third-party content. What was interesting here was that the wording in the Desura ToU bears remarkable similarity to that of the revised LL ToS, as I commented upon at the time. Specifically, Section 2 of the old Desura ToU stated:

You expressly authorise and permit Desura to exercise and to authorise others to exercise all of the rights comprised in copyright and all other intellectual property rights which subsist in the Content and you irrevocably consent to all such exercises. Desura is not required to compensate you or any other person in any manner for any such exercise or authorisation. In particular, Desura may use, reproduce, modify, create derivative works from, distribute, transmit, broadcast, and otherwise communicate, and publicly display and perform the Content and other works which are based on them (including by way of adaptation or derivative works) in any form, anywhere, with or without attribution to you, whether or not such use would otherwise be a breach of any person’s moral rights, and without any notice or compensation to you of any kind.

Desura's former Terms of Service included language similar to that found in LL's ToS
Desura’s former Terms of Service included language similar to that found in LL’s ToS

While the phrase “sell / resell” is notably absent from the above, the overall assignment of rights to Desura of any and all work uploaded to the Desura website (including forum comments, etc.), is actually very similar to those the Lab set-out in their revised ToS. Note in particular that Desura can reproduce and redistribute (aka give away and / or sell)  in any form, anywhere – a phrase which strongly echoes, LL’s own ToS statement that they can use content “for any purpose whatsoever”.

This clearly doesn’t negate concerns over the ToS changes or put anything to rights, nor am I suggesting it does. Rather, it suggests that the rewording of the ToS is a direct consequence of trying to merge two disparate terms of service / use, which has resulted in a clause which perhaps should have been more thoroughly considered in terms of implications rather than as an exercise in re-wording.

Following-on from my initial contact with the Lab about the ToS changes which elicited their original statement on the matter, and as a result of looking into the Desura ToU, I again wrote to the Lab on September 17th in an attempt to obtain further feedback from them on the matter. At the time this article went to press, I had yet to receive any reply.

Is the ToS Change Related to Making SL Content Available on Desura?

Determining what the Lab may or may not do isn’t easy. The company tends to hold its cards close to its chest on matter of future planning and directions. However, there are several points to consider when looking at the whole SL content / Desura angle.

For example, unless there are plans to curtail the Marketplace completely, one has to question whether such a move would actually be seen as worthwhile to merchants. The Marketplace may have its flaws, warts and issues, but at least it is directed at the audience most likely to purchase the goods on offer. As such, the effort in opening Desura to the sale SL content may not actually reap real benefit in terms of SL content creators actually using it.

Which is also not to say it shouldn’t perhaps be tried, if it doesn’t take-up too much effort. And who knows? In time, the Lab may well be looking towards moving away from a market environment which only allows content to be sold into one platform, and to one that allows them to potentially offer merchants the means to reach multiple grids. Again, not that this will happen overnight, were it to turn out to be a part of the Lab’s thinking.

Certainly, both Humble and Scott Reismanis, Desura’s founder, appear to share some grand ambitions for Desura’s future. I recently drew attention to quote from Humble on this, in an interview he gave to Gamasutra:

[We want] to make it the most open, developer- and user-friendly distribution service for all kinds of digital goods, starting out with games and mods and going from there. For us it’s a natural step… We’re about user-to-user transactions and empowering people’s creativity.

[my emphasis]

Scott Reismanis (Desura) and Rod Humble have expressed similar ambitions to grow Desura
Scott Reismanis (Desura) and Rod Humble have expressed similar ambitions to grow the platform

Continue reading “ToS Changes: The “Desura connection” and a personal perspective”

ToS change and content rights: Lab provides statement

In August 2013 Linden Lab issued a revised Terms of Service which was widely reported upon at the time, including within this blog.

Unfortunately, what seems to have been missed from the analyses of the revised ToS (including my own), is a substantial rewording of the section dealing with granting “Linden Lab certain licenses to your User Content”

Up until the August change, this section (then Section 7.2 of the Terms of Service) stated:

“You agree that by uploading, publishing, or submitting any Content to or through the Servers, Websites, or other areas of the Service, you hereby automatically grant Linden Lab a non-exclusive, worldwide, royalty-free, sublicenseable, and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the Content solely for the purposes of providing and promoting the Service.”

[my emphasis]

However, as of August 2013, the section (now section 2.3) has been expanded so that it now includes the following statement:

“Except as otherwise described in any Additional Terms (such as a contest’s official rules) which will govern the submission of your User Content, you hereby grant to Linden Lab, and you agree to grant to Linden Lab, the non-exclusive, unrestricted, unconditional, unlimited, worldwide, irrevocable, perpetual, and cost-free right and license to use, copy, record, distribute, reproduce, disclose, sell, re-sell, sublicense (through multiple levels), modify, display, publicly perform, transmit, publish, broadcast, translate, make derivative works of, and otherwise exploit in any manner whatsoever, all or any portion of your User Content (and derivative works thereof), for any purpose whatsoever in all formats, on or through any media, software, formula, or medium now known or hereafter developed, and with any technology or devices now known or hereafter developed, and to advertise, market, and promote the same.”

[emphasis again mine]

The difference in wording here has been the subject of forum discussions and blog posts, with users raising concerns over the change, specifically the emphasized phrases. I also received a number of IMs and note cards about the change over the weekend, particularly as a result of one supplier of images used for texture uploads to Second Life announcing they could, as of September 6th, no longer allow their work to be uploaded and used within the platform.

Rather than add to speculation already circulating, I contacted Linden Lab directly about the changes to the Terms of Service and the concerns being voiced. The Lab duly replied with the following statement, which I have been given permission to reproduce in full here:

“Recently we updated our Terms of Service to unify the existing terms of service for our various products into a single version. This updated version included a clarification with respect to the specific rights which a user grants to Linden Lab when submitting user-created content (referred to as the ‘Service Content License’) and, except as set forth in any related Linden Lab policies (referred to as ‘Additional Terms’), the right to ‘re-sell’ such user-created content.

“As previously indicated, the updated Terms of Service encompass a wide variety of Linden Lab products and services. We made every effort to incorporate Second Life’s existing policies in a distinct manner. We realize that the general nature of portions of the new Terms of Service may have led some individuals to believe, mistakenly, that Linden Lab was renouncing existing Second Life policies and practices or attempting to expropriate content created by Second Life residents. To that end, we want to further elucidate and reiterate our practice with respect to the Service Content License (and specifically Linden Lab’s right to re-sell user-created content) in Second Life. 

“As an example, Linden Lab’s Second Life Mainland Policies (cited as “Additional Terms” in the updated Terms of Service) have long included Linden Lab’s right to “re-sell or otherwise alter abandoned parcels of SL’s mainland,” including, if and to the extent necessary, any user-created content incorporated into such parcels. Additionally, Linden Lab often acts as an intermediary between Second Life residents (for instance, in its capacity as the operator of the Second Life Marketplace) which necessitates that Linden Lab have certain rights (such as the right to re-sell) in order to effectuate such exchanges or transactions.

“As evidenced by Second Life’s extensive history, functionality and well-documented policies for providing a platform on which users can create and profit from their creations, Linden Lab respects the proprietary rights of Second Life’s content creators. We regret that our intention in revising our Terms of Service to streamline our business may have been misconstrued by some as an attempt to appropriate Second Life residents’ original content. We have no intention of abandoning our deep-rooted dedication to facilitating residents’ ability to create and commercialize such content in Second Life. In fact, we strive to provide Second Life’s residents with evermore opportunities to do so.”

Whether this is enough to quell concerns over the changes to the Terms of Service, or whether it is enough to be seen as acceptable to third-party sites providing content uploads (textures, etc.) to Second Life remains to be seen. However, I would like to thank Linden Lab for taking the time to respond to my request for clarification and feedback in the matter, and for permission to reproduce it here.

With thanks to Toirdealbach McDunnough and Carina Asbrink for initially contacting me about concerns circulating within Second Life about the ToS change.

Related Links

One ToS to rule them all: Linden Lab issue new Terms of Service

Update: I’ve been furnished witha link to a document comparing the current ToS with the “old” SL ToS, which has been posted to Google Docs by Sean Brady. See Related Links at the end of this piece.

LL logoA new Terms of Service was issues by Linden Lab on Thursday August 15th. Second Life users logging-in for the first time after around midday SLT, while those who had been previously logged-in found themselves being asked to accept the new ToS upon re-logging after midday.

The new ToS appears to be an attempt to provide a single, all-encompassing document which can be applied to all of the Lab’s properties and products. As such, it should not be taken as referring purely to Second Life.

To help with this distinction, the new ToS is presented on Linden Lab corporate web page, as distinct from the Second Life-branded web page, and is linked-to from other LL properties with the (current) exception of Desura, which continues to have its own ToS for the present.

TOS-Aug-15
The Updated Linden Lab Terms of Service

Where Second Life is concerned the differences in between the new ToS and the last release version, dated May 6th, 2013, are very clear from the opening paragraph on through the document, which has been completely reshuffled and should actually be read through as a result. There are some significant changes in both wording and content, including, but not limited to (from an SL perspective):

  • A major set of updates to the dispute resolution / arbitration section (Section 10)
  • A new section (Section 7) on Infringement Notifications, including notes on the DMCA process
  • The removal of any need for LL to provide a 30-day grace period following any Material Change to the ToS. All changes, Material or otherwise, will now come into immediate effect on publication of the updated ToS to the relevant services. The onus on keeping up with changes to the ToS is now with users.

One thing to keep in mind when reading the updated ToS is that it is no longer applicable to just Second Life – as noted above, the same ToS is linked-to from all of the Lab’s properties, therefore certain sections of the new Terms of Service may have greater applicability to other services than to Second Life. Those sections which are specific to SL do appear to be clearly indicated as such.

Related Links

L$ resellers update: 29 registered and prices now compared

secondlifeIt’s now a month since the furore over the changes made to the Second Life Terms of Service relating to the buying and selling of Linden Dollars (L$) and which lead to the Lab writing to third-party exchanges (TPEs) requesting they cease trading L$.

Immediately following the change – which was officially referred to as an “anti-fraud” measure by the Lab, there was a lot of speculation as to the cause of the changes, most of it related to the guidelines issued in March by the US Treasury Department’s Financial Crimes Enforcement network (FinCEN), which I originally reported on back in April. There was also a good degree of confusion in the days following the announcement, with some exchanges receiving notification of a possible opportunity to resume some for of operations, while others found their SL accounts suspended, before everything was finally resolved with what some are referring to as a “climb down” by the Lab with the establishment of the “Linden Dollar Authorised Reseller Programme”.

Whether the original move was a direct result of the publication of FinCEN’s guidelines is actually somewhat debatable – as I’ve commented here across several articles. For example, blocking TPEs doesn’t actually mitigate the Lab’s own exposure as an MSB as FinCEN currently sees things; for another FinCEN gave all companies not compliant with their regulations six months to put their houses in order, and at the time LL announced the ToS change, barely two of those months had passed.

Again, as pointed out within this blog, there’s a reasonable argument to suggest that the change could have been a clumsy grab at revenue the Lab felt it was missing out on. One which may have been thought through in blinkered terms and put into play without any real understanding of how the move would actually impact a reasonable proportion of SL users.

At of June 8th, 2013, 29 organisations have signed-up to the programme

However, whatever the reasons, things appear to have calmed down somewhat, and in the 22 days since the launch of the Authorised Reseller Programme, some 29 organisations have signed-up and are now listed on the Linden Lab Official: Linden Dollar (L$) Authorized Reseller Programme wiki page.

The wiki page provides basic information on those organisations which have registered for the programme, including the currencies and payment methods they will accept from people wishing to purchase L$.

SL resident Uzi Boa (Joanna Bogacz in real life) has also compiled a reference guide for SL users wishing to purchase L$.

This provides the same information as the official website, but also includes details on typical prices charged for the purchase of L$1,000. She further breaks the list of authorised resellers into two parts: those which are operating as expected (i.e. accessible websites and services) – which total 16, and those which are described as  “listed by LL but not operating or with website error” (12 in all), for a total of 28 TPEs.  Hypno is listed on the LL wiki page but does not appear on Uzi’s page at the time of writing, or to actually be offering any services (the website noting that “webpage is only in Czech language. This time we are not able to accept random custommers from alien countries”).

Commenting on the comparison page to Maria Korolov in Hypergrid Business, Uzi stated she plans to try to maintain the information on the page and keep it as up-to-date as possible for the benefit of SL users.

If you’re unwilling / unable to use the LindeX for direct L$ purchases, Uzi’s page could be a handy resource for you.

Related Links

With thanks to Maria Korolov


Lab launches Authorised L$ Resellers

Update: May 18th: Podex and Gyndex have indicated they have applied for Authorised Reseller status with Linden Lab.

Upate May 17th: Gwyneth Llewellyn provides an analysis of LL’s move – very much worth a read.

secondlifeLinden Lab has issued a further statement on the recent changes to the Second Life Terms of Service relating to the buying and selling of Linden Dollars.

The blog post, which covers the fact that Linden Dollars can be purchased via credit card in using some 27 currencies and which includes the Lab’s “Getting and Spending Linden Dollars” Quicktips video, reveals that the Lab is launching a new programme of “Authorised Resellers” of Linden Dollars – a move which is likely to spake the most reaction.

The post reads in part::

Now, to give users more options and make it easier to purchase L$, we’re launching a pilot program of Authorized Resellers of L$. These sites are authorized by Linden Lab to purchase L$ on the LindeX and then resell those L$ using a variety of international currencies and payment methods. To be clear: per the Terms of Service, these resellers will not be allowed to purchase L$ outside of the LindeX (i.e. they will not be able to buy L$ back from users and cash people out). The list of Authorized Resellers participating in the pilot program is available here.

 If you would like to receive an application to the program when it formally launches, please send an email to LDollarSeller@lindenlab.com.

The initial list of Authorised Resellers comprises AnsheX, Buildo, VForEx Inc, VirWoX, and Zoha Islands, with more potentially to be added to the scheme – there is an invitation for other exchanges wishing to join the programme to e-mail Linden Lab.

The full terms and conditions for the new programme can be found on the SL wiki.

Related Links

SL ToS changes: Lab contacts TPEs; some get account suspensions

Update 17th May 18:45 BST: The Lab has launched an “Authorised Reseller of L$” programme. Initial report here.

Update: 17th May: Gwyneth Llewelwyn provides an interesting and thoughtful analysis on the entire situation. DXEchange has indicated it has received LL’s e-mail of a potential solution, and is considering the matter.

Update: 16:55 BST: The e-mail to TPEs is apparently light on details, but includes the following statement: “We have approached several organizations to discuss a potential solution that would allow them to serve their customers within the bounds of the updated Second Life Terms of Service. We will soon blog to share more information about this solution, which we plan to extend more broadly as well.” So it would appear that the “potential solution” may initially be made on a limited basis.

MBKash has also indicated it has received the e-mail from Linden Lab, as has Gyndex.

secondlifeThere appears to be new movement on the situation involving third-party exchanges dealing in Linden Dollars following the recent change to the Second Life Terms of Service, and movement of a most confusing kind.

On the one hand, blog posts have started appearing on various exchange websites noting that they have received further information from the Lab, and that matters may be resolved in a manner which would allow them to resume the provisioning and exchange of Linden Dollars to Second Life users.

ToS Change

On the other hand, some exchanges are indicating that the SL accounts they use to handle their in-world dealings have all been suspended by the Lab.

On May 7th 2013, Linden Lab updated section 5.3 of the Terms of Service, which deals with the buying / selling of Linden Dollars and third-party exchanges (TPEs). While the ToS appeared to indicate that while such exchanges were not “authorised” by the Lab, the re-wording gave the impression that users could still use such exchanges while re-emphasising that doing so was entirely at the user’s own risk.

However, a blog post announcing the updated ToS change stated the that use of third-party exchanges was “not allowed” under the new ToS, and shortly thereafter TPEs started to receive e-mails from Linden Lab ordering them to cease dealing in Linden Dollars and also to remove / disable all in-world ATMs from SL with immediate effect. Third-party viewer developers were also contacted and told to remove any links to TPEs within their viewers.

As well as leading to a lot of speculation as to the reasons behind the move, the combination of mis-matched ToS update and accompanying blog post, together with the e-mail to TPEs has led to a lot of confusion and upset.

The Good

However, a number of exchanges have indicated that they have had further communication from the Lab which may allow their to resume operations. These include, at the time of writing, VirWox, CrossWorlds and Virtuateq (the latter’s update is in Dutch).

The VirWox update reads in full:

Good News: Linden Lab has approached us with a potential solution that would allow us to serve our customers within the bounds of the updated Second Life Terms of Service. We are in discussions with them and look forward to being able to share more information very soon.

Similarly, CrossWorlds also  reported:

We have received an e-mail today with regards the problem from Linden Lab. It informs us that there may be a potential solution that would allow us to serve our customers within the bounds of the updated Second Life Terms of Service.

As soon as I hear more I will let you know… and fingers crossed we can fix this problem.

It is not currently clear how many other exchanges have received similar e-mails from Linden Lab, which appeared to start issuing them late on Wednesday the 15th May, PDT, and so it is possible that updates may be forthcoming from other exchanges as the day goes on.

Quite what the “potential solution” might be is unclear. There has already been some speculation that it could be for TPEs to register as MSBs with the US Treasury Department’s FinCEN or perhaps providing evidence that they are properly registered under / adhere to any corresponding requirements within their country of operation.

The Bad

Elsewhere the news is not so good. In the early hours of the morning on Thursday May 16th (European time), Jacek Shuftan reported on the Podex blog that:

Tonight  at 2.00 o’clock all my accounts related to Podex Exchange were put on hold by Linden Lab.

I really believed that the new ToS is meant to protect avatars from the risk of fraud.  That was my goal as well so I was looking forward to cooperate with Linden Lab. I could not imagine that over one night they would want to destroy our cooperation and everything what I built for 6 years of my virtual life. They did.

I believed that they would answer my requests to start discussion. They did not.

Similarly, DX Exchange are also reporting they have had accounts suspended:

Our avatars for our exchange activities are put on hold by Linden Lab, so there is no room for interpretation that Linden Lab wants to enforce the new TOS effective immediately.

That means that we are closed permanently as of today.We expect Linden Lab to enforce the TOS on all other exchanges today.

Defying the ToS?

There has been some speculation that Podex accounts may have been blocked as a result of a decision by the exchange to continue to offer L$ in defiance of the ToS change  / e-mail, with Podex citing the 30-day “grace” period prior to changes to the ToS coming into force.

What is interesting here is that DX Exchange appears to have suffered the same fate as Podex (at least for the moment) after they had initially suspended operations, and then, according to Hypergrid Business, decided to follow suit alongside of Podex and others. This move apparently led to Bart Bockhoudt, co-owner of Gyndex indicting to Hypergrid Business that he would be objecting to the move by DX Exchange and seeking further clarification from the Lab. Whether this prompted some exchanges receiving account suspensions or not is also unclear.

However, one of the other exchanges which also opted, according the Hypergrid Business, to continue to offer Linden Dollars under the 30-day grace period cited in the ToS was CrossWorlds – who are one of the exchanges who have received the e-mail citing a “potential solution” from Linden Lab. Again, whether this is indicative that the likes of Podex and DX Exchange have / will also receive similar e-mails, and that the current account suspensions will be lifted / are the result of confused communications within the Lab, remains to be seen.

Still Confused

Overall, the result of these moves appears to leave the entire situation as confused as ever, and doubtless open to further interpretation and speculation. Expect further updates  as / when matters become clearer either via the Lab or through contact with the various exchanges.

Related Links