Linden Introduces Out-of-Court Settlement Procedure to Second Life to Head Off Resident Lawsuits

In the wake of several virtual property-related disputes in Second Life, Linden Lab has beefed up its Terms of Service to include an out-of-court settlement procedure in the hopes of reducing dispute resolution costs to both Linden and Residents. The new Terms of Service, which were announced September 18 and which all Residents will be required to agree to before their next log-in, provide that a Resident who has a dispute with Linden who is claiming less than USD$10,000 may opt for "binding, non-appearance based arbitration." In selecting this option, a Resident will have to indicate their choice of an Alternate Dispute Resolution provider (a list of accredited arbitration centres, such as the American Arbitration Assocation and the National Arbitration Forum, are provided, although a Resident may make any "reasonable" request with respect to their arbitrator), and must indicate whether they'd like to appear at the arbitration by telephone, online, or through written submissions. Once both parties agree to appear before the arbitrator, both Linden and the Resident will be bound by the arbitrator's decision.

Linden Lab is hoping this process will provide a "cost-effective" dispute resolution process for Second Life. Those Residents with a bone to pick with Linden who are not so hot on the arbitration mechanism (and cash for legal costs to spare) may still sue in a San Francisco court.

Source: Official Linden Blog