For about the past month, I’ve been exploring the virtual world of Second Life, with an eye toward research on legal issues and legal communities there. What I’ve seen thus far has been fascinating. Right now, a controversy is brewing over a decision by Linden Labs (creators of Second Life) to shut down in-world “banks” offering participants interest on virtual currency deposit accounts. Many fear that the decision will spur a run on the “banks”, fueling exactly the problems that Linden Lab says are behind its decision. There is also an interesting issue on the horizon concerning an impending initial public offering of shares in a Second Life corporation. Among other things, there is a question as to whether such an IPO would be subject to U.S. or other securities regulations, particularly in light of the fact that Second Life currency is readily convertible into U.S. dollars.

Meanwhile, I’ve arranged to be part of a soon-to-be-launched Second Life Law School, which will offer classes open to both real-life law students and the Second Life public at-large. The virtual law school will not seek accreditation nor award degrees, but rather aims at providing general education about legal issues.

Debris readers who participate in Second Life are welcome to contact me through my in-world identity, Forelle Broek.