Mr.

Steven Aftergood
Office of the Director of National Intelligence
Washington, DC 20511
Federation of American Scientists
1725 DeSales Street NW, Suite 600
Washington, DC 20036
Reference: ODNI Case# DF-2009-00035
Dear Mr. Aftergood:
DEC 3 0 2011
This is in response to your email dated 26 February 2009, received in the
Management Division of the Office of the Director of National Intelligence (ODNI) on 26 february 2009.
Pursuant to the Freedom of Information Act (FOIA), you are requesting, "a copy of the filial report and
other finished products (including a DVD) that resulted from a July 2008 ODNI SHARP (Summer
Hard Problem) program on virtual worlds and their implications."
Your request was processed in accordance with the FOIA, 5 U.S.C. 552, as amended. A
thorough search of our records and databases located two documents (one report and one DVD)
responsive to your request. Upon review, it is determined that the report may be released in segregable
form with deletions made pursuant to FOIA exemptions (b)(1) and (b)(3). The DVD is denied in full,
pursuant to FOIA exemptions (b)(3) and (b)(6).
Exemption (b)(1) protects information which is currently and properly classified in accordance with
Executive Order 13526. Exemption (b)(3) applies to information exempt from disclosure by statute. The
relevant withholding statutes are the National Security Act of 1947, as amended, 50 U.S.C. ' 3024(m)(1),
which protects, among other things, the names and identifying information of ODNI personnel.
Exemption (b )(6) applies to records which, if released, would constitute a clearly unwarranted invasion of
the personal privacy of individuals.
You have the right to appeal this determination within 45 days of the date of this lt1tter to:
Office of the Director of National Intelligence
Information Management Office
Washington, DC 20511
Should you decide to do this, please explain the basis of your appeal. If you have any please
call the Requester Service Center at (703) 874-8500. l
Enclosure
,

{ t.on
Director, Information M
I
gement Divisrn
,. I
.
The content of this report. Including the opinions, concluslon1. -lysl1. and e g l l n t ~ do not,.._.
Mnt those of the ODM.IC or 11111 other goftl'll-..1 entity and should not be attributed to those orpnlzatlolu.
All coprrighted 1-.s-pun:hasedfrom onlnewncbs.
The Flip 8oolc: Flip through the pages rapidly to see the transformation of a human face at the bottom, right-hand
corner of the magazine.
..
rPttnr of National Intelligence
Deputy Director of National Intelligence for Analysis
Wa-;hington, DC 20511
(U) On behalf ofthe Office of the Director ofNational Intelligence, I am pleased to introduce
this report and accompanying CD titled, 3D Cyberspace Spillover: Where VIrtual Games Get Real, pro-
duced by our Summer Hard _Problem Program (SHARP). These deliverables are intended to stimulate
discussion. They are not endorsed by the Intelligence or the Intelligence Commu-
nity, nor do they represent the Intelligence or the Intelli-
gence Community. The m
During the
deliver their
pages of a l"nnvPn
accompanied by a _ .
example.
professionals from
gather to study,
problem. The
so they can
analysis.
to publicly
be lost in the
(U) I hope you and discover, as I
have, the boundless come together in a pleasant
venue with a common passion The Office of Analysis is
pleased to engender such innovation,. Defense Uniyersity and iDS, a
Central Intelligence Agency initiative, for providing session support. Finally, I greatly appreciate the
contributions of the National Counter Intelligence Executive (NCIX) for its exemplary leadership as
SHARP's first Topic Champion.
Sincerely,

Thomas Fingar
;; 7 . J: .. -'$,"f, :':._:!. :,/ ':'"' ... '

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(U)KeyFindings
(U) Immersive virtual and gaming environments can no longer be dismissed
fad. More than 200 virtual worlds are either available or under development,
and online games number in the thousands. These environments continue to
seize the imagination and trigger creative and technological innovations that
show no signs of slowing down.
0 Virtual worlds enable rich, vivid, and compelling online
interactions. This emphasis on the visual is a revolutionary improvement over more traditional
two dimensional, text-based methods of interaction through such formats as e-mail, chat rooms,
discussion groups, and web logs.
(U) The standards, protocols, and infrastructure established and adopted for
virtual worlds have the potential to directly and substantially affect the future
of the internet. The nation that most influences this process will likely domi-
nate the next-generation internet in the same way that the United States was
able to dominate the first-generation internet.
0 Once a pioneer in virtual world technologies, the United States is no longer leading the race to
adopt next-generation internet technologies.
0 Because virtual worlds may be a potent means of spreading values and ideoljlgies, the culture
that seizes the technological high ground in these spaces will have the advantagf in spreading its
I
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ill
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(1)
(3)
Virtual culture exposes nuanced of identity and personhood that lurk
within rich, vivid, and 3D online interactions. Real world identi-
ties of person, group, and nation can blur in digital spaces. In the powerful
medium of virtual worlds, online experiences can influence and even alter
offiine behavior. People will increasingly see their online, virtual identities as
extensions of their real selves.
0 {U) As online identities become extensions of real selves, increasing numbers
of citizens may expect legal and law enforcement protections in virtual
environments similar to those provided in the real world. This will create greater
popular outcry for law enforcement and legal protections for virtual world
identities that are similar to those of citizens.in the real world.
{U) It is likely that adversaries increasingly will use virtual worlds to engage in.
propaganda, recruitment, coordination, training, and information gathering.
Because of the immersive nature of the experience, virtual worlds are a par-
ticularly powerful medium to influence behavior, including offline behavior.
The online experiences that users carry back to the real world will be subject /.
to manipulation and influence.
I
I
I
I
I
I
I
I
/(b)(1)
/ (b)(3)
(U)Key
.. d.
n
(U) The economic impact of virtual and gaming environments already rivals
that of the mainstream film industry and is rapidly growing.
0 Mainstream adoption.of immersive virtual world technology in the business sector
will likely reduce costs and substantially improve the quality of online education,
training, collaboration, and other forms of work However, a real boost in productiv-
ity as a result of these technologies will not occur until the generation currendy in
school (the "Millennia! Generation") and actively using these technologies enters the
workplace in force.
0 Some currencies based in virtual worlds are gaining global recognition and are
convertible to real currency. Within the ~ x t five to 1 0 years a virtual world-based
currency could become widely tenderable and freely convertible.
(U) As virtual and gaming worlds increasingly become part of every day
experience, governance in those environments will assume greater importance.
Governance in virtual and gaming worlds now consists of a mix of corporate
end-user licensing agreementS (EULAs) and community standards. But as
virtual environments generate revenue streams for virtual inhabitants, govern-
ments will likely feel compelled to intervene to protect their interests and those
of their citizens. Economic activity will also raise issues of virtual personhood
or identity, of property and privacy.
/(b)(1)
(b)(3)
(U) Because virtual and gaming environments are global phenomena, the roles of two key
players--China and South Korea-convey a warning about competitive challenges and an
example of a highly adaptive model, respectively.
(U) Chinese virtual and gaming environments reflect Beijing's authoritarian political practic-
es. This means that restrictions against free speech and freedom of expression are built into
the underlying rules that govern Chinese virtual and gaming environments. If exported,
these authoritarian-fiiendly technologies may become available to other governments and-
depending on how the marketplace evolves-could become the dominant standard.
0 China's efforts to manage the emergence of its virtual worlds through regulatory
pressure, incentives for domestic companies, and standards setting have enabled it to
become a global leader in this critical technology. As a result, China may eventually
control the software that runs the dominant virtual world used for global commerce,
communication, entertainment, and education
0 China's infrastructure and standards enable it to monitor and control domestic
users, and Chinese dominance of the global industry may allow the Chinese govern-
ment to extend this capability to international users, including those in the United
States.
(U) South Korea supports its highly competitive online gaming and virtual world industry
with an advanced telecommunications infrastructure that serves as a model of adaptation
to the changing environment. Because the United States faces similar challenges of adapta-
tion, t ~ utility of"the South Korean model becomes a relevant future consideration. The
South Korean model uses government-supported infrastructure to enable a free market in-
dustry with democratic values. A domestic industry of this type would be capable of setting
intern.ational standards and leading the global industry.
0 South Korea's global leadership in virtual world technologies is largely due to its
government-industry partnerships, investments in domestic internet (for
example, high bandwidth), and early adoption
of virtual world platforms.
I
I.
(U) Not a fad.
(U) technology and the convergence
@f real and virtual worlds
(U) Technology comprises the very foundation of every
virtual and gaming environment, and without the capabilities provided
by their technologies, virtual and gaming environments would not exist.
Paradoxically however, it is these capabilities that are the focus of inter-
est, not the technologies themselves. Understanding the capabilities and
exploring the possibilities that technology provides is important to assess-
ing what happens when virtual 'worlds become real.
(U) Technological Innovations:
Graphics and Social Networks
(U) While computers are configured to work within text-based interfaces,
humans process information more graphically, in three dimensions. Since
the development of personal computers in the 1970s, computer-human
interfaces have evolved to embrace the human brain's tendency to process
spatially. The emergence of the internet was a communications innovation
that presented humans with information in a spatially accessible manner.
(U) With the development of computer interfaces to enable users to connect
to a global network, the social aspect of computers has increased exponen-
tially. Humans especially need three-dimensional context to process social
information, whether in the real world or, increasingly, the virtual world.
The development of these applications drives virtual world technology and
industries.
(U) For example, innQvations in game graphics have driven the development
of an American gaming industry, ~ h i h has produced more revenue in the
United States than Hollywood film-makers since 2003.
1
In 2007, movies
that coincided with the release of Microsoft's Halo 3 suffered dramatically
from low attendance.
2
Video games are the emerging venue for capturing
the hearts, minds, and advertising dollars of a generation.
(U) Another key innovation has been the use of computer technologies to
enabie large numbers of people to pool their knowledge and creative abil-
ity. Social networking sites such as Wikipedia, You Tube, Facebook, and
MySpace resulted from this innovation.
(U) Virtual worlds take the rich social networks of the so-called Web 2.0 and
add a visually rich, immersive environment. Immersion causes humans to
act as though the environment were real. Users project themselves into the
avatars and demonstrate very real emotional reactions and attachments.
Immersion also improves learning efficiency and personal involvement.
(U) For a more detailed discussion of the development of virtual worlds and
3D interfaces, see Appendices 1 and 2.11
4
(U) Topical Technology Issues
(U) Network Infrastructure.
Online infrastructure will likely
drive the future of virtual worlds
because it enables both the social
and graphical elements of virtual
worlds. Entertainment companies
provide infrastructures, or central
hubs, to which users connect before
entering the game they wish to play.
This way, a user can play multiple
games across the internet using a
single alias or avatar (provided that
the games are under one game
provider's system), and rich presence
information can be sent to a list of
''buddies" who can see whether the
user is online, what s/he is doing,
and whether s/he wantS to be joined
within a certain game or activity.
They also provide rankings and
worldwide scoreboards for players
as well as various communication
v o i ~ , video, text) options indepen-
dent of the game being played.
(U) As infrastructures grow, multiple
worlds may begin to share a com-
mon architecture. An example of
online infrastructure is Valve Soft-
ware's Steam architecture, while in
the console industry Microsoft and
its Xbox Live service lead infrastruc-
ture development. These infra-
structures are the building blocks of
a Multiverse: a plurality of virtual
worlds linked by a common infra-
structure. Similar to the trajectory
followed by the development of
social networks, one or two of these
virtual infrastructures may come to
dominate the marketplace.
(U) Network services have become a
platform for content delivery. Users
can directly purchase or obtain new
games, videos, or music content that
is downloaded straight to their device
without the need for physical media.
This presents a lower cost of entry
for developers to make their softWare
available to a large audience. For ex-
ample, the Xbox Live Arcade service
allows users to download low-budget
games at prices ranging from five to
20 Dollars.
(U)Established infrastructures can be
attractive to software deyelopers be-
cause they provide a common frame-
work around which to design the
online portion of their game. They
often include anti-piracy measures
and also have an existing customer
base toward which they can mar-
ket their software. In addition, the
communication already provided by
the infrastructure lowers total
development costs.
(U) Com:munications.
Without communications,
virtual worlds cannot func-
tion. Communication per-
meates the virtual landscape
to enable social interaction.
VIrtual worlds permit com-
munication through mul-
tiple interlinked channels,
including text, voice, images,
video, and gesture.
ing a phone call. In the 3D open world, messages typed
or spoken are often broadcast to any avatar in the local
area or within a specific virtual radius-the user is often
not able to directly control who else hears or sees these
messages; they may not even know who else is connected
into the local. area.
(U) Communications can be embedded into the very
fabric of the world itself. Billboards, posters, and adver-
tisements can all be customized by marketing companies,
or users, alloWing them to broadcast music or movies, or
even to objects when investigated.
(U)Non-verbal communication methods are also avail-
. able to users in virtual and gaming environments. Both
Second Life and World of Warcraft offer a basic set of
gestures built into the avatar, but Second Life goes further
and offers users the ability to create their own gestures
and animations.
(U) Security.
(U) Second Life and other similar applications use a com-
munication protocol called remote procedure call (RPC)
as part of its way of improving performance. RPC has
a long history of exploitable vulnerabilities, and thw is
usually blocked by corporate and user firewalls. Because
Second Life requires this protocol, for example, it opens
the Second Life user to direct hacker attacks that might
otherwise not be possible.
(U) It is difficult enough to s6cure a corporate network
5
(b)(1)
(b)(3)
from the constant and persistent threat of malicious _ - -
external parties but, in an environment .emplor;es (b)( 1 )
travel widely or routinely work at h?.mtc:,-using perspnal (b )(3)
computers, laptops, non-cqt.porn.fe'-owned machines, and
personal _3.Sistafif8, security is even more difficult
to maintain: -
--
(U) Many organizations are now moving their applica-
tions to the web and off-premises computers, which
means that office-based workers and telecommuters alike
have equal access to files and programs. This in turn
requires location-independent security means. IPJ
..
(U) Technological
(U) The Death of the Keyboard.
Developments in human-computer
interfaces (HCI) are critical to the
These types of input devices can be
combined with a new generation
of haptic technology that provides
uptake and utility of virtual world
technology. .. Current technology
relies chiefly on the traditional key-
board and mouse, or a proprietary
controller (sometimes referred to as
a "gamepad"). These have provided
a barrier to mass market interaction
with 3D environments as they are an
inherently abstract method of HCI.
A range of emergent technologies
may be used in the future to interact
with virtual worlds. Products such
as the Emotiv EPOC, which uses an
electroencephalograph to turn brain
waves into computer inputs, are
beginning to become commercially
feasible.
4
0 (U) Motion Sensitive and
Haptics. Motion sensitive con-
trols have already revolutionized
the home console market Motion
sensitivity provides an immersive
interaction with the virtual worlds,
allowing the user to move his/her
real-world hands or body to initi-
ate virtual-world actions that reflect
the user's real action. These plat-
forms are growing in popularity. For
example, the Nintendo Wri, which
features a motion sensitive remote
controller, has consistently outsold
home console competitors in 2007
and
a tactile response such as an explo-
sion (a low rumble), or sword fight.
Finely grained haptic technology
can give the impression of touching
cloth, or a stony surface. Full body
haptic technology could even simu-
late the impact of bullets, immersing
the player deeper within the virtual
world.
0 (U) Touch.
(U) Touch interfaces have existed
since the 1980s, but will continue
to be developed for future devices.
New breakthroughs are predomi-
nantly driven by recent advances
in "multi-touch" panels (a touch
surface where multiple points can be
touched instead of just one). Apple's
successful iPhone brand has utilized
a multi touch surface on a cell phone
to manipulate pictures, music, video,
and traditional phone and e-mail
functions which has driven consumer
demand.
(U) Microsoft has invested sig-
nificantly in multi-touch technology,
developing a new user interface for
its Windows Vista platform. The
new interface, Microsoft Surface,
represents a new paradigm in human
computer interaction that blends the
virtual world seamlessly with the real
world.
(U) As proliferation of such tech-
nology increases it will profoundly
affect the way humans interact with
computers. Computers no longer
need to be multi-component desk
top devices or laptops. Instead, they
can be flat panels located on any
surface, able to interact with any
device, including cell phones, cam-
eras, music players, games COJlSOtes,
agreed standards will ensure that
future computers like these will lose
none of the utility that modern com-
puting provides. Inter-connectedness
with every-day devices will create
a parallel virtual world that can be
geospatially referenced with reality,
but which also provides the abstract
concepts that are inherent to the cur-
rent internet.
-(U) The Death.of the Disk. Digi-
tal distribution is the replacement of
traditional media delivery methods
(CD, DVD) with a digital version
usually transferred over the internet
This phenomenon can be compared
with the popularity of video sharing
sites such as You Tube, which enables
anyone to reach a worldwide audi-
ence from their. home. Content cre-
ators are no longer relegated to small
or local releases of their art. They
can now leverage new technology
to speak to the world. The virtual
world revolution will go hand in
hand with digital distribution as each
becomes a driver of the other.
(U) As bandwidth and digital rights
matures, the depth and
breadth of digitally distributed con-
tent will increase exponentially. Tra-
ditional methods of delivery such as
CDs and DVDs worked as filters to
the mass market Content that was
not considered palatable to a general
mass audience was often discarded.
Yet the rise of digital distribution has
diminished the effectiveness of those
filters. Users are free to post what-
ever content they choose and are
able to reach an audience that would
otherwise be inaccessible. Viral vid-
eos created on sites such as You Tube
are examples of this breakdown of
barriers. Extremist propaganda
posted online is another eXample of
this worldwide
(U) The Birth of ArtificitJ Intelligence. In the context of games and virtual worlds,
Artificial Intelligence (AI) refers to "hots," which are avatars and objects that have roles
and functions, but no human directly controls them. AI software and systems respond
to in-game events according to rules that are set up by the AI designer. For example, a
wolf in World of Warcraft has "wolf rules" and will often attack a nearby rat that also
follows its own "rat rules." For the majority of non-human objects in the game, rule sets
are purposefully simple-a wolf only needs to wander, scratch, sniff things, and attack
anything that seems to be alive (be it an avatar or that unfortunate nearby rat).
(U) The AI community is becoming increasingly interested in applying AI technology to
game and virtual world systems, since they provide real humans upon which to test new
AI concepts and technologies. The ability of games and virtual worlds to communicate
with the real world presents the opportunity for the application of highly complex rule
sets like virtual personalities.
(U) Bow Will Virtual Worlds Evolve?
(U) How virtual world technology evolves will be crucial to fully its poten-
tial impact on the world. Three dominant potential growth paths exist, as follows:
(U) Met.averse. This path of development is similar to the growth and dominance of
Microsoft and (to a much smaller extent) Google. A single company or organization cre-
ates a virtual world that is so useful and compelling that it aggregates a majority of the
internet's users. Elements of this include:
7
[> 0 (U) Difaclo standtzrds. Standards
developed by the platform "owner"
quickly become dominant.
0 (U) Concentrated heneftls. Every
innovation within the ecosystem
confers benefits on the platform
"owner."
(U) Interlinked Multiverse. In
this path, existing site infrastructure
is augmented through the addi-
tion of virtual world technology. A
multitude of sites will introduce and
expand virtual spaces for their cus-
tomers and users. Examples include
an Amazon store or.a Facebook
"room." Eventually, due to busi-
ness/ customer needs, new standards
of interconnection are agreed upon
by the major participantsto enable
virtual spaces to interconnect. This
growth path will be characterized by:
0 A bewildering variety of technolo-
gies and vendors.
0 Minimal standards of intercon-
nection.
0 Decentralized control, as it is cur-
rently with web sites.
(U) Reality+. The Meta- or Multi-
verse may not be a completely virtual
environment, but rather an extension
of the real world. This growth path
is the result of rapid development
of methods that add computational
layers to existing geographies (struc-
tures,objects, and people). This
computational layer will create and
consume data and allow rich interac-
tions between people in close prox-
imity as well as from remote loca-
tions. This growth path will see:
0 Bottom-up interaction between
locations and mobile devices moving
up toward virtual world overlays on
existing reality.
down access to location spe-
cific data. layers through systems such
as Google earth.
0 Full virtual overlays on existing
reality (mixed reality).
(U) he Emergence of Interna-
tional Standards. Standards
bodies are developing inter-game,
inter-world standards for communi-
cation, object transfer, account and
identity transfer, scripting and other
programming standards. These
standards would permit, for example,
instant messaging between avatars
in different virtual worlds or games,
transfer of in-world currency and
possessions, and most importantly
for the user, the ability to carry one
identity (name, avatar appearance,
possessions, history) from world to
world.
(U) There is a push to repeat history,
in that virtual worlds are at the same
''place" that web browsing was in the
very early 1990s when AOL's web
browser was based on its own propri-
etary communications protocol and
rendering techniques. AOL users
could not access CompuServe data
unless they also had a CompuServe
account, and there was no cross-
ing of those boundaries except via
email and file transfer which are out
of world techniques. That changed
with the development of a standard
for viewing content, called Hypertext
Markup Language (HTML). The
development of HTML, a simple
text-based markup language that
is the basis for all web pages, is a
standard that allowed any vendor's
browser to view any web site. The
.result was that the "walled gardens"
of CompuServe and AOL morphed
into open areas accessible by anyone
with a browser. The virtual worlds
are similarly in the 1990s because
they are walled gardens, and the
development of stand<!l'ds for com-
munications, rendering, and most
importantly protection of intellectual
property will allow users to move
across virtual worlds the same way
they move across web sites today.
(U) However, there is ~ contrary
argument that it is not in the best
interests of industry providers such
as Linden Lab (Second Life) and
Blizzard Entertainment (Worldof
Warcraft) to permit such crossing,
and that the industry will not take
this path. Standards are being devel-
oped, nonetheless, and some vendors
will adopt h e m ~ i t is also likely that
some will not. e1
I.
(U) i.G .LAs s E s S EE
lNTO THE -FUTURE .
. ... ---
.. ,
J
'
(U) One plausible future technologiCal developr_nent.is
wearable technology versions of classic eye
glasses. The iGlasses would feature a. fully integrated
cpmputer, PDA,. cellphone, ID tag, HMD (Head .
Mou:q.tedDisplay), Built-in access
woiild comestandard'with.all niodcls. .
. (U) whe:q. With GPS 5ystems and
. IJMI)s, they would allow Reality-+ graphic overlayS
' enhancmg what peopie see t:Illough .the glasses in real-
. ' . '
time as they walk and traverse -the world. Mi-
.:: Glasses personalized software. woUld then allow
ersto reality'with their person,al touches .
...
' (0) This woul<:f where it was as itS
' i . ; wearer looked around, and. the device would' under- '
. stand -what it wa.S viewiJ:lg .. These capabilities would be
enabled by GPSand .. Graphics would
oveday the real-world :setting if the so desired.
. would be able to 9verlay ads
onto public 'Oillboards that wearers pf iGlasses would ..
View .. Ad .camp3.igns woUld thereby became:; personal-
ized to .wearers of iGlasses. .
(U) Of course; this technology. could also be abused.: .
Right-wing extrC<nlists, for neO.:Nazis, could_
i:>verlay or ethnic slurs and slogans on buildings
or individuals irt tlJ.e real world. Or jihadist &ympa$-iz- .
. . ers _could:ga:ther:ori the-Capital Mail wearing iGlasses
they oonduct a virtual rrieetmg .that overlays an
'avatar. of Usaffia bin Ladin on the real-world steps of.
the:Lincolri Memorial. Their reality, thdr.world, their
. hate-all reinforced the blencfuig of the '. ' , .. .
virtu and'real wonds, with Reality+ oveda:y,s:. i .
:.
(U) Who are you?
(U) vnJrfclUl<ml c1illRltmur<e
ences. This section examines
this emerging virtual culture
in t;erms ofitlentity, ilkologies
and their sociAl networks, and
group behavior.
(U) VIrtual worlds are Introducing an era where Ideas
spread more rapidly than ever before, and have the potential to influence
larger and larger global audiences. With the internet as a distribution
First Mover .Advantage:
The Diffusion of Memes
in Virtual Worlds
6
medium, any person can
invest their time and skills
into creating interesting
content, attracting an audi-
ence, and forging virtual
relationships. Take, for
example, Matt Drudge, who in 1998 broke the Monica Lewinsky scan-
dal on the internet. If the 2D internet communicates memes that cross
cultural boundaries, the increasingly compelling and immersive virtual
world will be even more effective.
(U) Through virtual worlds people are increasingly able to spend signifi-
cant amounts of time fully immersed in a foreign culture. This virtual
presence could lead to the rapid adoption of memes via virtual diffusion.
The memes may be subde, such as fashion trends, mannerisms, slang, or
entertainment preferences. But they could also be more significant, such
as religious, ideological, sexual, or philosophical memes.
(U) Because virtual worlds communicate ideas and emotions so well, they
may be a potent method of spreading ideologies. For example, if virtual
. world "netizens" adopt the Arrierican concepts of individual property
rights, the ideas may then spread throughout the real world. This, in
turn, o ~ d result in an increase in the global acceptance of individual
liberty as. a universal norm, just as British dominance of the high seas
two hundred years ago led to the enshrinement of British concepts of
liberty in the international trade system. Taking advantage of oppor-
tunities for cultural diffusion via virtual worlds to create pro-Western
influences could have important economic and political implications for
the United States .
. (U) Other countries appear to recognize this potential. China, by ban-
ning QQ Coins and forcing Blizzard to change certain aspects of its
games to conform to Chinese values, is expl"l!ssly protecting its national-
ist message to its citizens.
7
This demonstrates that China understands
what we in the United States yet do not: that virtual worlds reflect and
communicate real world cultural values; that among those values most at
risk are property and liberty, and as a result, democratic discmmse.
s ''E"-Erf*R*SZ* a '!
(U) .A Word on Identity
(U) Virtual worlds provide a 3D platform for personal expression, enter-
tainment, creative expression, and business activities. All of these activi-
' ag
ties leave traces that can be retrieved and interpreted to identifY a person.
When this mosaic is combined it refines and defmes a person's anamaya, or
virtual identity. This may extrapolate to that person's real-world
identity. In the real world, issues of identity involve more than
how a involve how s/he what s/he
with whom s/he interacts,
and what s/he cares about. In fact,
physical characteristics are very poor
indicators of a person's true self.
(U) A person's real world and virtual
identities are defined by a number
of elements, including both internal
and external factors or concepts of
"self."
8
As a person moves his or
her identity into virtual space, s/he
brings a number of the same sense-
of-self issues with them. However,
the online world, with its anonymous
element and its enabling technolo-
gies, also allows users to redefine
their identity in a number of ways.
Virtual worlds offer anonymity and
the false perception of anonymity.
(U) Both have significant implica-
tions for identity. From one avatar
to the next, and through the multiple
expressions of self that the creator
generates, deceit, whether or not
nefarious, will likely enter into the
process. This may be aspirational: I
wish I looked better so I will make
my avatar attractive; or deceitful: I
will create a false avatar to view adult
content without revealing who I re-
ally am. Even in attempts to deceive,
an individual reveals traces of his
or her identity in the form of an
anamaya.
(U) The construction of identity and
culture in a virtual space is the result
of structure and environment played
out by virtual individuals, virtual
groups, and the larger virtual soci-
ety. Vrrtual identity is the product of
actions undertaken by virtual groups
as they shape and reshape their
self-definition and culture; moreover,
virtual identity is constructed by in-
world social and economic processes.
On the other hand, virtual identity is
also influenced by real world envi-
ronments. When people invest a vast
amount of energy, material and ideas
into virtual worlds they feel real pain
and loss when their virtual beings
are abused, harassed, and exploited.
Symbolic interactions that occur in
virtual worlds are no less real than
the ones in the real world.m
I
(U)The Key Component:
(U) Virtual worlds, by combining 3D
virtual reality with social interactivity,
bring a new element to global and
internet communication. As these
communication tools evolved, so did
the behavior principles governing
virtual social interaction. Though
studies have shown that virtual social
interaction follows patterns similar to
real-world social interaction, virtual
worlds and online games may also
provide opportunities for role-play
and fantasy realization. Some users
may experiment with.illegal or im-
moral behaviors that they would not
otherwise display in the real-world.
(U) Online to Offline
Preliminary empirical research has
indicated that virtual world interac-
tions are subject to many of the same
physical "rules" of human
communication, including notions
of "personal space" and the role of
non-verbal communication. While
the specific manifestations of these
rules may vary across cultures Gust
as in the real world), these offline-to-
online parallels may also translate
within cultures.
(U) Virtual behaviors and experi-
ences are crossing-into the real-world
in multiple ways. Recent research
indicates that a range of real-world
nonverbal and visual influences
indicative of human relations car-
ries over into virtual world interac-
tions.
9
Critically, not only do these
visual mechanisms play out in virtual
worlds, but they can translate their
virtual world effects real world
scenarios.
(U) The implication of cross-over
is that users are transferring their
real-world socio-cultural motiva-
tions into virtual worlds. Because the
expressive abilities of online entities
are now so advanced, it is simple to
code in behaviors that co-opt real
human beings who interact with
those worlds. At Stanford University,
for example, an avatar mimicked the
head nods and tilting of a human
being, who then judged the avatar to
be "friendlier'' than one that did not
move in synchrony.
(U) Even more simply, imagine that
a group of online griefers in Second
Life might desecrate an online Ka 'ba
created by an Islamic group, thereby
inflaming Muslims in the real world,
prompting them to take violent ac-
tion, or encouraging recruitment for
real world jihadist groups.
10
The
subtleties of these new virtual world
techrwlogies will likely aid and abet
this sort of malfeasance.
(U) Benefi.cia.l At the
intuitive level, it seems clear that
computer-mediated games-from
single-player to massive multi-
player-:can have beneficial effects
in helping players to cope with
work-related stress, overwhelming
responsibilities, social contact and
support, social anxiety, self-esteem
and empowerment issues, and real-
life trauma.
11
(U) More generally, the field of "seri-
ous games" focuses on games that
are used for training,_a_dyer:t:ising;----
simulation,-or-edueation.
12
These
include a broad spectrum of games
that are intended to overdy influence
u ...... vl,u,, most for.
13
E> some identified benefit-one that
frequendy health-related-like
quitting smoking, losing weight, or.
increasing exercise.
16
(U) Increasingly, however, such
games focus on social or political ob-
jectives, such as establishing rapport
or empathy between otherwise alien-
ated or at least non-communicative
groups. A good eXample is Peace-
maker, in which the game challenges
the player to "[e]xperience the joy
of bringing peace to the Middle East
or the agony of plunging the region
into disaster."
17
ica's Arrny are unabashed in their
influence objectives. Yet how suc-
cessful they are in achieving those
objectives is unclear. Other games
may be more circumspect about
their manipulative intentions. This
may be a particular issue in the mas-
sively multiplayer online role-playing
game (MMORPG) venues, since
they have a considerably greater po-
tential for influencing via traditional
social mechanisms.
18
Achievement
in MMORPGs is seductive because
goals and journey are well-de-
fined and the rewards are social and
persistent. In a MMORPG, a user
embodies his or her achievements in
a character that is part of a commu-
nity that recognizes the user's p_9wer--(b)( 1).
and competence. and (b)(3)
MMORPGs take
on that other games do not


(U) In general, the insertion of politi-
cal back stories in games--including
:"1.----------------__j pre-computer games--is not new.
20

(U) Ideological "marketing" games
such as Special Force 2 and Amer-
The concept has been given a whole
new life, however, with the arrival
of PC games and online multiplayer
games, given their significantly more
immersive and, therefore, more
innately influential characteristics.
The primary concern from an influ-
ence perspective .is the prospect of
political or ideological objectives
hidden in game rule sets or play me-
chanics, where their effect can be less
obvious. Just as cinematic spectacles
enrapture audiences, game play
captures the minds of users. Thus,
"games can. communicate doctrine
by demonstration.
21
(U) Some examples of computer
games with ideological objectives
include:
0 Under Ash (Syria, 2001)
0 Ethnic Cleansing (US white su-
premacist, 2002)
22
0 America's Army (US Army, 2002)
o Special Force I (Hizballah, 2003)
0 Quest for Saddam (US, 2003)
0 Kuma War (US, 2004)
0 Under Siege (Syria, 2005)
0 Night of Bush Capturing (AQ/
GIMF, 2006)
0 Special Force 2: Tale of the Truth-
ful Pledge (Hizballah, 2007)
0 Special Operation 85: Hostage
Rescue (Iran, 2007)
23
(U) None of the above is a MMOR-
PG or social world; they are all
single- or limited multi-player games.
As ideologically-driven parties ex-
periment with large virtual worlds
as influence vehicles, however, their
practical utility for the purpose of
obtaining influence will become
clearer.
(U) MMORPGs, in general, have
the further characteristic of present-
ing a values-neutral backdrop within
which a nefarious group might
conduct propaganda and recruit-
ment activities. Given the design
and operating costs, MMORPGs will
likely not be developed so much as
manipulated--at least by non-state
groups. State actors, though possess-
ing the resources to experiment with
inclinedto be the passive recipients
of a set of divine game laws limit-
ing their options and forcing them
the development of
MMORPGs as in-
fluence mechanisms,
may likewise simply
find it more efficient
to use already-
existing games. The
Chinese experience
is perhaps the most
(U} Real relationships devel-
op between the real people
behind the avatars, even
though the individuals may
never meet in real life.
along specific
pathways of
play. Rather,
garners are
increasingly
re-defining
the structure
and intent
instructive in this regard.
24
(U) Though the discussion above
may imply that game designers have
an insurmountable advantage over
players in terms of influence mecha-
nisms, this is not necessarily the case.
The extent to which any putative
ideological (or other manipulative
agenda) game designers and opera-
tors may have will be counterbal-
anced by the players themselves.
(U) The idea behind this thinking is,
broadly, that this increasingly sophis-
ticated and astute game-playing au-
dience will detect and either ignore
or subvert such influence attempts.
The i l i t y of some game players to
identify, analy-t:e, and characterize
seemingly unconnected or random
aspects of a game and then infer a
design agenda is well-known. This
reflects a designer-player tension that
has existed since the first generation
of computer games--one that is
clearly recognized by both contesting
parties.
25
The industry perception is
that the advantage lies with the garn-
ers, who quickly probe, define, and
then breach intended design bound-
aries. Although this category of
gamer activity is self-interested (and
sometimes has underlying criminal
objectives) rather than altruistic, this
proficiency ultimately benefits the
entire gamer community.
(U) Game and player sophistication
are evolving together. Players are less
m
of games
in highly individualistic ways, and
game operators who try too hard to
limit this type of activity risk losing
their playing audiences.
(U) The trend toward "open games"
and increasing player control can
inform observers' understanding of
the real "threat" from games as in-
fluence mechanisms. Their ultimate
influence may be limited to two fun-
damental overt areas that have been
discussed above: individual empow-
erment and a reduction of negative
stereotyping.
(U) Other more sophisticated and
potentially more manipulative mech-
anisms may be unable to survive
elite garners' scrutiny and ridicule.
The process may be roughly akin
to what we have experienced in the
realm of mass marketing: while
the industry has some extremely
sophisticated and effective tools at its
disposal (most.famously, "subliminal
advertising"), attempts to employ
these techniques are high risk and
have a strong tendency to backfire.
Therefore, the advertising industry
focuses on the use of "accepted"
techniques in the most original and
entertaining way. It may well be that
virtual world influence techniques
will evolve similarly, but they have
not yet done so.
(U) Sexuality. Those
who are unfamiliar with
virtual worlds and online
15
games sometimes have difficulty
grasping the depth of relationships
that can develop in these commu-
nities. Real relationships develop
between the real people behind the
even though the individuals
may never meet in real life. Avatars
in Second Life are often observed in
chat saying things like "I am not a
cartoon. I am a real person."
(U) Friendships can lead to love.
In some cases, the individuals may
agree to meet in real life, whereas in
other cases the individuals agree to
keep the relationships "virtual." The
unfolding drama in these relation-
ships sometimes leads to jealousies
and accusations of cheating by
virtual lovers. Such scenarios may, in
turn, translate into real world actions
with reru legal consequences.
to be early adopt-
ers of new tech-
nologies, to improve
them, and thereby to
influence broader accep-
tances of the technology.
28
Improvements in technology
will in turn make the experience
even more realistic. The pornog-
raphy industry is actually driving or
adapting some of these uses-with
significant economic consequences.
(U) According to The Observer, the
once 13 billion US Dollar adult en-
tertainment industry is on the decline
because of free sites like youporn.
com and Pornotube.com, which
reportedly receive more internet hits
than CNN.com. The availability of
free pornography (either pirated or
created by amateurs) is now wide-
spread and this affecting the adult
entertainment business the same
way that Napster affected the music
industry. A probable progression
of this trend is that consumers will
be looking for other expressions of
ticipating in virtual
activities that would
be illegal in the real
world (for example rape
and child pornography) is
similarly inconclusive.
(U) The question of harm must
be considered. What constitutes
harm? If one partner behind the
avatars is a minor, .and the other is an
adult, does society judge this cyber-
sexual activity as unacceptable?
(U) What if the individuals behind
the avatars are both consenting
adults, but one is role-playing a child
avatar ("age play")? German police
investigated a case of age play in
Second Life. In the United States,
such cases are extremely difficult to
prosecute.
30
Further discussion of
US laws regarding child pornogra-
phy can be found in the section on
Law Enforcement. In any case, vir-
tual world communities have begun
policing such behavior themselves,
regardless of national laws.
31
(U) In Second Life, one enterpris-
ing individual has set up a private
investigator (PI) service for hire. If
requested, the PI will go so far as
to follow and attempt to entrap a
virtual lover in order to test his
or her fidelity.
26
There are also
numerous stories of individu-
als who develop such strong
feelings for their virtual lover
that they are willing to divorce
(U) There are also numerous stories of individuals who devel-
op such strong feelings for their that they are
willing to divorce a real-world spouse in order to start a new
relationship with the person that they have met online.
a real-world spouse in order
to start a new relationship with the
person that they have met online.
(U) Some key trendS in the pornog-
raphy industry have been noted that
have direct applicability to the virtual
world, such as the rise in user-gen-
erated content, the tendency to seek
greater levels of anonymity, and
the desire for more realistic but
safe experiences.
27
Analysts
predict that virtual reality
will host the next wave
of the pornography
busio"ess. Actors in
these underground
economies tend
pornography that they cannot get
for free, such as virtual environments
and adult social networks that offer
more than a passive experience.
29
(U) If the individuals behind the
avatars are consenting adults, we are
then left with the "so what?" ques-
tion.
(U) As is discussed in the section
on Influence, the research on
the effect of violence in video
games bleeding over into real
life violence is inconclusive.
Thus far the literature
(U) In Brussels, an individual alleged
that she had been virtually raped in
Second Life.
32
Does this constitute
harm? The case was ultimately
dismissed because the judge ruled
that the woman had the option of
turning off her computer, regardless
of the mental anguish she suffered
or the damage to the reputation of
her virtual character. In the United
States, might this type of action be
prosecutable under obscenity laws?
33
Laws will need to catch up with the
new behaviors are possible and
the new norms that exist in these
virtual worlds.l:l
(U) Group Behavior
(U) Teclmology continues to enable
new ways for individuals to connect
and relate to each other. Many of
the same driving forces that encour-
age people to group together in the
real world also exist in the digital
realm. These social groups are akin
to tribes. They coalesce around a
common interest or activity, or a
shared set of knowledge or beliefs
because of the opportunities, sup-
port, or protection that the tribe
provides to the individual.
(U) Some cohesive groups have
already been moving between vir-
tual worlds. A group of "refugees"
moved en masse from the game
Uru into There.com and Second
Life, when the servers in Uru closed
d<?wn. The refugees recreated their

:::::>" . .
. .
earlier virtual communities and arti-
facts in their new worlds.
34
(U) Griefers.
Most tribes
come together
for the enter-
tainment and
enjoyment of
playing the
game; they
strive to gain
their reputa-
tions and be-
come legends
by excelling at
the competition L-...!....-.
offered within
the experience. Others, however,
are more interested in "griefing," or
creating trouble. Such groups strive
'. .. . . .... _ ..
(U) Life can customize'their.avatais to
groups, a"Uo.Wing groups tti remain organizec(a!'ld providing.an
recognizable symbol for identifying the Jt!is
facet of SeCond l:.lfe.!)ecomes rele\rantt9 us ll'!ben 9n:e\
, , , . r..,., . \ , "'+, , .
4
:4..' :<.. i . -.. 4 . 'f#:.? .. . .....
f1i ..
groups to
their. group. whet!lefin obvious qrsubtle ways: . ' : .- " .. '
_, . . . . .. . . . .
(!.:J) The mpst methoc:f could use with a
.. if CC?r
lfitdoes not). can 6f:4P.
group name_ alongside
world would tha"t the resident is a member of the gro1,1p. Belongil').g:to a group ean :: :-
also yield other benefits, such as accessing pints ofttie world to certain groiip'.
members. Tangible benefits such:as access ca11 help to reinforce group identity and the :
members.!; . . , ::: < _. -.,';:.:_:: . .. :.:: :,,:
.. ; . . ... ... ...
M_The.avatar feat\Jies offered by Second more sul)fle::
methods by !Jsers can ass.ociate themselves a particul!!irifr<?.up. Some resi-r"'
dents may not want to attract attention to themselves by having, fur example, phrase
Hizballah Supp(>rter floating above 'their avatars. b4t co1.1ld .witll:.
by.cre!l_tJ!lg aod ,lfa

s!"t1rts With a mot_e.mn_Qcuous yet !itdl
a particular piece of jewelry unique item cf.lfted group\member and giVen,
OJlly to other group a a member of 9roup.
these understated methods would not provide the technical benefits ofan officiill mem-:
bership in a group (such as being .. to aceess wartd),.they, '.

withlll the virtual world. Again, these methods could stdl be .used.to ceme t the
dent's ana maya" as part ofthe group and the itseif ' . "'
II, - i - .
' .CONP
to be a disruptive force, one that can
cause chaos and frustration in others.
(U) What is interesting to note is
that griefers (whether individuals or
tribes) tend to work inside the system
by following the rules of the worlds
they are disrupting. They then abuse
and exploit either the design or an
unintended flaw in the code to carry
out their cJ:taotic actions. In short,
although they may be considered
"digital rebels," they still accept the
electronic, artificial reality of the
world in which they operate. They
are rule breakers, not system break-
ers.
(U) Customs tnul Values. Obvi-
ously, a big element of any social
network is its shared sense of values
and morality. In virtual worlds such
as Second Life, this can lead to tribal
formation around both traditional
interests, like religion and hobbies,
and fringe pursuits, like fetishes
and radicalism. In a virtual world,
groups of disparate interests can live
in close virtual proximity to each
other.
(U) What makes virtual worlds like
Second Life unique is that
both can exist in the same
space and utilize the [>
1> same tool to create and maintain a
community. Sometimes the more
extreme tribes in these worlds go to
virtual war against each other, cre-
ating a new form of conflict based
on disruption of the experience
and denial of access and service.
Such conflicts will often strengthen
the bonds of the digital tribes,
since they have a sense of pur-
pose and an identifiable "enemy."
individuals continue to spend
more time in virtual worlds interacting
with their digital tribes, what is socially
acceptable in those worlds may strain
the bounds of traditional real-world
norms. Community standards, and the
concepts of shared values and under-
standing that conventional communi-
ties provide, may be reinforced, or they
may be torn apart, but they will no
longer be static.
(lJJ Religious Groups. Some
religious groups have already utilized
the gaming trend to send a positive
message about their religion. For
instance, Digital Praise, a company
specializing in Christian software, is
releasing Guitar Praise, which is based
on the same premise as the successful
Guitar Hero and Rock Band games.
36
'-------------- LB Games has produced Left Behind:
(U) The ultimate, larger implica-
tions of digital tribes remain to be
seen, but they will likely continue
to grow. Connectivity is the linch-
pin of this expansion; broadband
penetration has lead historically
to virtual world expansion. Ac-
cording to Gartner, "worldwide,
17 countries will have broadband
penetration rates of 60 percent or
more by 2012, up from five coun-
tries in 2007." Furthermore, "with
a projected 77 percent household
penetration rate, the United States
will be tied with Japan for the fifth-
highest broadband-penetration
rate in the world, trailing only
South Korea (97 percent), the
Netherlands (82 percent), Hong
Kong (81 percent), and Canada.(79
percent)."
35
Tribulation Forces as an online multi-
player game based on the Left Behind
book series.
37
Other games promote
a particular religious-political point of
view, such as Special Force 2, which
recreates the 2006 war between Israel
and Hizballah forces in Lebanon, as
seen from Hizballah's point of view.
38
Games may also incorporate religions
or pseudo-religions into the storyline in
order to make a game more compel-
ling. For example, in Halo 2, certain
actions may lead to the destruction of
life in the Halo universe, but provide
access to the gods.
39
(U) Based on this history, it is likely
that religious groups will continue to
expand into virtual worlds to spread
their messages. Religious groups in
Second life cover the spectrum.
religious sites in :OO..P<1'nntl1
regular basis.
40
J.ll\.UVJLUU . .u.J
pray at virtual rntrlrtPll
or mosques. Some IPaJrticipa.te
religious rites such
the Hajj. Second
built detailed and
churches, catnet:tra.l$
sites.
(U) Why have relig!p1ns
in virtual worlds anlc:l_({amtes!'
with most_Q.ther
!pjria.m1fy-inclined inclividu:al
-seek to find other
viduals with whom
activity provides
for community
cotte*on, the spread
charity work,
On the negative
also provide
$us.ce):)btJole indi-
hlnlnr:alllllnufor extremist
use of virtual
(U) Please see AJ:PClnOJtx 3 for a de-
tailed description
different virtual
(b)(1)
(b)(3)
'
(U)PLAUSIBL
( U) PAT T E-RN
RECOGNITION/
SYSTEMS THINKING
. it . --...
AND .GRIEFING

M A digital game is a sy8tem of
must manipuljite to accomplish s1 Jecit).c
framed in a narrative. Becoming a
quires an ability to "game the
one must be able to recognize ..., .........
the system rules in order to reach the ODlectJtves
game .
(U) In future, it is plausible that a ma.Ss of

people would be extremely good pat- ..
terns and understanding complex because
they are being trained by game for this type of
thinking. People may even begin reality itself as
a system recognize and explore.
(U) 'Dte of this de\ielppl'll.ent
both' negative and positive. A rise in ....... .,..,r, ..
cur, since "griefers" are individuals
exploit system rules to disrupt ,.YT, .. ..,,,.n,,..,.,.
users. Some griefers may then begin eXJllo:tUnlg
in pursuit of nefariOUS political and TWlrSOinal
On a more positive note, the .. , ................... ....
people with the skill of in complex
systems m"'y mean that there will be larger pool of
individuals from which to draw officers and
analysts.
(U) Real impact in.th real
w rid.
(U) <eC<CDIDl mic
resources
in virtual worlds, jurisdic-
tions with stable, balanced,
and progressive legal and
regu/4tory approaches to these
wor/Js-specifo:ally ones that
take the. "consent of the gov-
erned" into account-will
likely acquire a decisive ad-
vantage in crafting the culture,
form, and content of virtual
(U) Economies are necessary In virtual w-tnrlllllll!!:
ers from leaving. Users lose interest if there is runaway JIUlatJton
real world value of their virtual creations-which took
Discussion: Why Are
There Virtual World
Economies?
ration power, support specialization, encourage ". ..
users, and support economic role-playing.
41
In many
economy is an extension of the publisher's business
nies make money by selling and facilitating the
digital "items" so players can customize their avatars
(U) Technological Implications
Economics
(U) Hiftiag to Bv.siness. Despite the current popularity gaming in
virtual worlds, its future appears to be in business. in high-speed
mobile devices, sensors, and distributed design and will likely
combine with Millennial Generation user experience to
nomic aJfairs. When the Millennial Generation transt1tlorasl
in l 0 years, virtual worlds are likely to play a larger role in
(U) Fourth generation wireless sexvi.ces and devices will
pear within the next five years. The high bandwidth deinajllde:d
realistic virtual worlds and virtual overlays will need this
technology in order for businesses to see the large-scale orck:lucti,ritv
hancements necessary for widespread adoption.
42
(U) Some form of "ubiquitous computing," where a
day devices and objects (such as buildings and microwave
capable of regularly and inexpensively transmitting and reaetvml!
the internet, is also likely within the next five to seven
infrastructure is necessary to create realistic virtual worlds,
people), and virtual objects at a level of detail where
people who run them are comfortable basing decisions on
tions.
43
(U) Mobile devices will likely become more
reality glasses appropriate for everyday business use caJ:Iabl
between the real, virtual, or "mixed reality" worlds
seven to I 0 years. Simple, user-friendly, open
tions are likely to appear in five to seven years.
44
(U) Advances in distributed design and distributed
amplify the impact of blurring the virtual and real worlds.
(U) Collaborati Technology:
A Tool for Busi sses. The
unstructured info mation provided
by social technolo es is particularly
useful in business rocesses that are
not rigidly pre-de ned, but where
people work toge er in an adaptive
way to innovate s lutions. Business
I
processes often rely on access to
structured data. This may be spread
across many applifations, databases,
and directories. Social technologies
work to address s9ch complexities.
I
(U) Blogs and wiiqs are collaboration
tools and useful mfuruy for sharing
unstructured infor:mation associated
with ad hoc or on$oing projects and
processes, but not or structured in-
formational retri . Yet some com-
panies, such as Sh 11, are converting
their official docu entation to wikis
because this enabl s the company to
make documenta on updates avail-
able in real time a.rd enables non-ed-
itors to contribute fto the documenta-
tion. In this they restructure
-:.::: -::: .. :: :rr== a
: (U) A

' . than a
highly permis-
intranet tool.
anyone to edit
information,
no special
nnVliPO"Pl: Or knowledge
If wiki
pfllfessi,onal interests,
previous posts
contact informa-
atmosphere of
familiarity arises,
emllJO,rees will be
(U) Time Zone Issues with Business and 1el:hnolo!e)1.
trend of participants on projects collaborating across

work increasingly must be done asynchronously.
time zone related discrepancies by exchanging e-mails or messages on
physical Post-it notes. This problem is even more in collaborative
virtual reality (VR) because VR is not particularly for the display
of text.
(U) Tools, collectively referred to as teleimmersion, have
create a virtual environment (VE) that supports asvncl:trom!nlS
One of the advantages of design or scientific visualization
environment is the ability to have participants in different Ut'!l)OT'anlhir.
tions share space with each other and objects. This allows
engage in a physical dialogue-to point at specific objects
the paran:teters within the simulation-as a way to clarify
gives the users a common context for their discussions.
(U) In asynchronous collaboration, the ability to hand off
accurately is of great importance. A user arriving in an
tion in the virtual environment needs to know what work
during his or her absence and what work stillmay need to
collaboratively, researchers at the University of Tokyo and
Illinois have developed three VR-enabled tools for this ...... ..nr""'"
VR-annotator, and VR-vcr. II
(U) Currency
(U) Virtual world currencies will
likely continue to evolve to possess
more and more cash-like properties.
Gaming companies have powerful
incentives to make virtual world cur-
rencies more suitable for micro-trans-
actions and easier to use, acquire and
convert to or from real world cur-
rencies. These properties will open
(U) QQ Coins,
gained such wt"411es:tl>re!ad
use by March
up virtual-worlds operators' markets, world. The .....
allow for new game-play possibili-
ties, expand their potential revenue
models, and reduce their credit risks.
Virtual world operators will want to
reduce their exposure to fraud by currencies.
moving to more secure and reputable
payment systems. The implications
of these changes are that virtual
world currencies will move more
toward retail distribution by cards
or other stored value mechanisms.
Another trend will be to improve
security with stronger authentication
for the transfer of monies, and pas-
self-authentication similar to the
23
,_;.
(> cards.are mostly simple magnetic
strips or printed cards, and as such
are highly vulnerable to forgery and
fraud.
(U) In the predominant mechanism,
these cards simply store a code which
links to a ledger entry on the game
provider's service. It is likely that in
some games these cards will move
to more secure mechanisms which
employ "smart card" technologies
and stored value.
(U) By using prepaid game cards,
garners may be able to use virtual
currency to ma,ke real-world transac-
tions.
55
The "Octopus card" is one
example of this; it is a mechanism
by which Hong Kong residents can
buy passage on mass tran_sit. The
Octopus card became ten-
derable because it was broadly held,
has cash-like properties, and is used
to pay for a ubiquitous service; all
of these characteristics also apply to
-- -World of Warcrafi ... gold."
(U) As virtual worlds become in-
creasingly accessible via mobile
devices, it is inevitable that they will
become integrated with mobile-
based payment systems. This will be
hugely beneficial for game makers,
as integration will allow new revenue
models, and also for players, because
it will allow instant gratification and
new types of rewards. Moreover,
mobile-payment and virtual world
integration will make it dramatically
easier to use either in-world currency
or seamless server-side conversion
to purchase real world goods and
services.
(U) Virtual Cxrrency in the
Future. It is likely that virtual
world-based currency will become a
widely tenderable and freely convert-
ible currency within the next five
to 10 years, and will function much
like traditional state-issued currency.
Market forces are pushing game and
virtual world operators to create
products which have real world cur-
rency properties. Their implemen-
tations may serve as a substitute for
real world currencies. In five to 1 0
years, virtual world currencies could
rival those of small nation-states in
stability, liquidity, and users' faith.
Virtual world institutions may mirror
real world institutions, which can
provide depository services, credit,
securities, financial guarantees, credit
analysis, hedging mechanisms, and
other services similar to those found
in a robust real-world monetary
system.
int.lation;;trv pressure, or
to sovereignty.
is unlikely to be
effective, except to limited degree
in authoritarian like China
with tight currency
in those states,
limited efficacy
sures are taken.
likely to see the
convertible and ..... ..
world-based cuJrreJnc:b.,es
(U) Virtual world ,. ...........
ly continue to
more cash-like ....... , ....... ,..;
(U) These ........ , ....... ,..;,.c.
up virtual world ....... ..
allow for new ....,,rn ... .Jnll<>u
(U) Nations may reduce their exl>OS1UJI'e
see the emer-
gence of signifi-
cant virtual world
currenaes as
economic, politi-
cal, and criminal
threats. Like
China, they may
enact legislation
or regulation to
eliminate or con-
trol virtual world
currencies.
56
Virtual world
authentication, and bossilt>lv
authentication in
a 20 Dollar bill is
(U) Money, Financial Markets,
Sovereignty: Toward a New"---
(U) Virtual worlds are implementing a system of value that mirrors
those in the real world. Nearly all vit:tual worlds have and in-
world exchanges for goods or services, and some have and debt instru-
ments. The currencies of today's major virtual worlds are
real, hard US Dollars either through intrinsic world-based
gray-market third parties.
(U) Real world spillover into virtual worlds continues. t;ntrd:Pia
chartered banks operating in-world and issued its own
matically converts in-world currency to US Dollars at a set
real-world ATMs. Due to inflation concerns, the People's .... ... u'"""
is attempting to stop the trend of QQ Coins being traded
rency.
61
QQ Coins gained such widespread real world use
that 14 Chinese government agencies were prompted to
the use of virtual world currencies in the real world. The
China asserted governance and enforcement
operators' issuance, in-game use, and Renminbi (RMB)
(U) Game operators are now accountable to financial crime
world use of QQ Coins and RMT markets has not been nn,c.>n.mn.r"
There also have not been any prosecutions despite there
examples of clear violations of government guidelines.
in virtual worlds in China have suggested that the lack of m1.ci.Il'WaJ crimes
charges levied against virtual world operators violating guide-
lines is because enforcement is extremely difficult and worlds and their
as gold farming,
important.
62
,.
(U) Regula.ory Framework
(U) Countries that have stable and fair legal and regulatory frameworks for virtual worlds are likely
advantage in crafting the culture, form, and content of virtual spaces. By nature, virtual worlds are .......... .... Y
national. It is likely that there will be a cycle of national regulatory attempts which may cause
to shop for friendly locales. Early examples of this can already be seen with IGE, one of the largest
currency exchanges, which has changed venue several times and is now domiciled in Vanuatu, a
have been enacted to attract this kind of enterprise.
65
(U) It is likely that market forces will drive virtual
world creators and currency institutions to self-reg-
ulate and domicile in at least somewhat regulated
venues because virtual world currency users will -
require the liquidity and stability that arise from
transparency and the rule of law. For a detailed
discussion of market development drivers see Ap-
4.11l
(U) Economic Threats
,---------+--------,, .
(b)(1):.
(U) Money Lauaderi.11g. Trade
in virtual currencies is likely to be a
means of small-scale money launder-
ing. There are numerous internet
sites that offer to trade large blocks
of virtual world currencies "off ex-
change" for rates considerably worse
than those available at official sites.
The only advantage to accomplish-
ing conversions in this manner is
that they are not tracked or reported
by the game operator.
66
Several
game operators and RMT sites,
such as IGE, are operated. by alleged
criminals. Some, like MindArk, have
connections with suspicious investors.
Existing digital currency systems like
eGold are possible money laundering
platforms, as they allow instant inter-
national transfers over foreign and
domestic private networks without
reporting requirements or oversight
associated with the mainstream funds
.transfer networks.
(U) As virtual world currencies
continue to. evolve and become more
liquid, they will likely retain all of
the properties of today's digital cur-
rencies with additional properties
that make them desirable for money
via stored value card, implemented
as digital cash, and domiciled in
secrecy-friendly venues.
(U) Sovereign.ty. If the ability to
issue currency and control conver-
sion of currency is fundamental to
sovereignty, virtual world currencies
represent a significant threat. It is
likely that a major virtual world will
domicile in a venue which grants
its operator effective control over
its currency, much like a sovereign
state, because the benefits to doing
so could be very compelling to the
game operator, and therefore to a
small host nation. The successful
sale of the control of internet top-
level domains by small countries to
private companies demonstrates this
phenomenon.
of eco-
virtual worlds
only a few
countries the issue at
all. In April 2008, Swedish Tax
Agency issued
ing income earned
broadly stating that
game results in nnaqc::Iai
eluding even
is reportable and
the currency is rnnvllrnlhl ..
world currency.
not state whether
third party secondary
cient to allow for coJrtw:rnm
ing the definition in
If this is the case, m-worJd
all major virtual we1onr"'"""n'
be subject t9 yahie
income taX.
67
-of virtual world or
this situation is
prompt companies
tries with more
I (b)(3) ..
.(.- U) P -(_ A.u .S- I B L
. . -. , .
.(U)
MONTE.NEGRO..
' . '
-B-ACK IN- 2010
---
. '
(U) The plausible future creatively inteipret_ed below dem start: Othergames
basicrilln:ither just back-fit onto qld-school .onstrates the pqtential for of businesses in virtual
and the ilnpact t:hat virtual worlds could .. thinly veiled cyber-Pomi schemes, or wery fj.ltldamc:ntally
. have globai economics:
of chance. . .
.. /' -
(U) It probably seems. obvious now, but back theri.people (U} Of cqurse,.we a lot to some of the
. thought I_ was CraZy. Maybe SOIJle still do, .. "before.)Js, so I would hasten to applaud Qfthe old "econ-.
' . ' . ' ' . ' .. . . . . . ,.
using the Montem;gro Gold'piece.(Geeps); In . - omy' games .. Unlike our predecessors, . we. had a mix
event, !low that a ve_cy fa5t ro yearshave gone by I thought it' of gaine economists; engineers, bUsiness people
wo,lli.d be useful to reflect a_ little,. as much for lriY own benefit e . WOrking together the OUtseJ? a,nd US the
!15 for that of a,ny interestd readers. . . e .economics gaps. We deSigned our garrie so woilld
. .. . per.forn:i for trade With_ _another, and
(U). Monteriegto's GDP has mcreased than 1.0-fold in that woulc;i be fun and sustainable too niuch interven-
10 years, and we have gone from having one of the li>west . tion from us/ we did this lire so obyious that
stanchlrds of living in the w,estern .. one o.f 'high- do:n?teven tliink aJ>out $em any but at the time
est. We are .but we punch way;abo\le our it was ne\V, wayconsider gapte-play
weight: we still not produce. iri the natural us approach in-game economy
or tangible items, but we o_f tl_le' . in this way:'. ' ..
virtual industr}r, a ' ..
The Geep has becotJle a currencyas which 'puts (U) lnveslmimt . Spending: When buy a
us_ .in select club of with poptdations . they tliink it in two wars: investing.. .
three orders of magnitude greater than outs, and in*es us a .. AitWorld (with few exceptions)
real player ori the world . spend money. With in contrast,
is a that has J>een about.alot, 'and.it earn digital items thai: will
has attributed to a whole hosi:of causes, but we can. ; the_future. Moreover, some of
. traee it back to one point in time, . .ind one. decision. crease'in invest they
(U) As riearly .everyone now knows, in 2009 I launched Alt-
'world with,same frierids ofniine. At _the time,
just MMORPG nding the tide.of the-late 'aughts venture
capital-fueled MMORPG boom. Even though 'there
200 otht:r garries th_a:t out that yea.J? was fun .
a few million players in shon oroer.
from being unbelievably fun, AltWorlq was di!ferent
it had a robust and . in-world ' the
thcir wallets they ,sPend ..
. 0 .(JJ) Lol.Jer of Entry: Mf\liOIRP<
. . . . .
. allowed users to play for free but
irades were just take off back
zero cost of great to
. that, if they know they
at least partiaily, they. are much more
entry as the. net. r> ' .
some resale
items might in-
to. be lo'oser with
' .
..
0 Before We introduced AltWorlcl, most
online ganies that used: an meChanism tended to
have prices that were either created by the game operators
or were thinly on small and were highly
volatile and subject to mariipulation. When we came out . .
with a large integrated_world.and economy wit\1 g<>od .
. _ ket and price discovery r_nechanisms, players responde<! with
more trade, and a viJ;tuous cycle ensued. Faii, .
pricing is a good basis Tor a currency, and vice .
0 (UJ Price Sf!'biliti)l: Everybod)r expects virtual world
econ9mies.to be stable now, bui: when we created AltWorld'it
. . . .
was not obvious why that was so important Basically, when
people invest a lot of time'or money in.something;they oo .
not want that investment .to.evaporate <>Ver AltWi>rld
has always had the most stable -price levels in online ga.nles.
. .
0 (U)LiqNiditi)l.-aml Dep,th: lfaving a large iri-world us whc:n we Ca.me out the Geep card.
economy Cuqency trustworthy it playerSto.be able to pay for stuff on Alt:WC>tlcli
:gives to it-if people always want to new.. not.require t;hem through hOOPs pr
set of armor in-tlte m_oney will always change hands, Of course we also al usi11g a stolrea.-value
The the the better works. a way to fraud pq)Osurc::s,
Likewise, haVing a currency that is usefUl outside-of the the re.al o( the model was n.otiu>JJar-enlt to i.Is when we
game as a. real currency makes the currency more reliable decided on it
for _LiqUidity- anddepthmakefora good (and.
manageable) velocity of money, which for a better .. (U) So now I guess. the game reasons foi:
gaine. . . pretty. clear, but
. reaSons to gofi"Qm real-ish to real, _and why .l\tl<>Dtlmegrct?
0 (U) When we made.AltWorld Gold
useable in 9ur second ia,me, Prrates vs; Ninjas, 0 {u) Privti.CJI: . Some of. our players live
thought we. were crazy. We did it out of pure others simply-do not want ''the Man"
we a lot of people to begin playing PvN soon as . - I).ess. We wanted to have laws to prote<;t
possible, and we wanted a liqui4 currency an9liquid item . . ac;:tion .systems to ensure 'nobody ;ntn,.nl .. l:iin
markets. Of course, it turntd out that having a deeper . . . It is :a fair criticism our country's . laws" facilitate it-
meta-economy made it a lot :easier to cross over real .licit activitY; in .. we belieVe individuallibeity
world wit!'t oilr currency the reasons I descril)ed above. . trumps right of _the state in almost Of,
course,. we _d_iay.;: the line at "nf1 ..rnrl1r>P<
0 ( U) l'llllta'llt Grilification: il game rewards
ers with something tantamount to real money, right on the
spot, they tend to respond betteri When it is not
any more but is instead true exchangeable currency, the
reward is that much better. .
.. 0 _(U) ConVBnience: This one seems ridicUlously obvi-
ous now, but before the Geep f>eople had to use cash, .
clumsy debit( credit cards, or services like Pay Pal. They _al59.
had touse the currency to their g{:ographjc
location or of a web merchant on the <:>ilier side of
the world. With Geeps could do small (and large)
an),where, with anyone, and ooUld be. confident
that they woUld get a fair trllde. of this occurred to
ity, but that is a distinct line. The great
haS been that. has become an m':eniac1onaJ
arid.banJring center, and i:hat tho5e.indlustrie8
worlds as la_rgest contributor to
. 0 (ll} fu:2008 Sweden said they v.rPTPI<rn;ra
levyingyalue"aaded tax on jn-world u an:sactioins
convertible which was pretty
count thiro party exch3J!ges (which you
have been an ind';IStr.y killer. When 'we were
launch AiiWorld we were not confident that
. .
players in Sweden, or.anywhere in the EU that matter, and
be safe from. thiS tax scheme: Wf? needed a where there
were moqenite laws and where we coUld .be tonfit:ler1t: thai the
j
.. ,
I
-.!
-1
J
i ,
,. :
, ..

.

r
1

.j
1
.. L.
l
-
regulators understood and valued our industry. By the way,
the United States did not meet those requirements at the
time. Bac!t tlien, the choices were China or Vanuatu, neither:
of were good ideas for a lot of other reasons. So, we
decided to start ta.I.king with countries that might be willing
to negotiate.
0 (U) Regulation & t1ue Rule of Law: Contrary to
popular belief ba4 then, we did not move to
and cr.:ift i:he laws that we did_ to escape In fact,
our intention was to be regulated with the force of law and
international treaty.so that participants in our worlds could
have confidence that our economic institutio.ns wauld report
that we would enforce contracts among_ play-
ers, and that we would protect. their property, free speech,
and free assembly rights.
(U) Montenegro was a member of the IMF and the World
Bank, which wa.S important to us, as was the country's.
relationship with Europe. Montenegro was its
neighbors, but did not want to switch its cur- .
rency to the or be subject to the ECB. The country .
had .a.lscJ applied for.membership in the WTO.
connectivity,' a forward-looking an.,..rnrrtf'n,tl
industry, imd a supporting work culture.
are important for servicing virtual worlds.
ity to create, a platform on which to
a way to socialize and organize. Y!e felt
that they feel protected in all of these "rtivifiiP
users the abil-
of their privacy and property rights, and authoritarian
(U) A happY side effect of the regulatory scheme we put governments that might wish to infringe on rights of free
. togethe.r was that people started using our worlds as a place speech and free assembly. Of course, virtual citizenship
to transact busineSs that had nothing todo.with the games eclipsed what people normally thought of they thought
we offered. Moreover, Montenegro ltttracted other virtual about games, but we determined that-the we could satisfy
world and game operators--we essentially becanle the DeJa- basic human needs, the better a bu5iness would have.
ware of cyber-space :
o (U) Sovereign CtiTnmCJI.= Cmr.vertibilili)1: Having
. the Geep become a state-issued currency made total
sense to us. We wanted our players to have confidence
that comes from coin issued by a sovereign state as well as
the ability to freely convert their money. We also wanted
have a diversified economy' that had anchors outside the
game. Of course, it was not lost on us that there be
second-order benefits of having control of a tenderable and
freely convertible currency, issued by a country with robust
privacy laws.
0 (U) Size And Eco110J'1'91: Montenegro, back in 20 I 0,
had a GDP that was only a few times our
revenues. Our company's _inarket cap exceeded the coun-
try;s foreign currency reserves, and the per capita GDP of
Montenegro was about what a good gold farmer could make
back then. Moreover, Montenegro lacks natural resources
and did 'not have a industrial base. What the
country did have was great geopphy, an educated p<ipu-
lace, good telecommunications infrastructure and internet
(U) Back in 20 I 0 we did not realize that
ship would make Montenegro a global
of ideas, that people would play our to be .citizens
in acounti:y that protected their rights.. We
1
also did not think
our sort of cyber-hippie statement would m e Montenegro a
hub for commerce and trade in servi es. We just started
out with the idea that we should make our mes a hospitable
environment for our players. Another hap accident!
. (U) So here we are today. My founding p
pretty well off, and have cool Minister of
When we come back 'to the United States
ners and I are all
and That titles.
get to park wher-
ever we want (diplomatic plates!). Our cou try has become a
.model for economic development. We lead one of this cen-
. tury's most important industriesand our lit e Montenegro. is
able to set technology standards for the -rest f. the world. The
people of Montenegro have become amon the most prosper-
ous in Europe. Our little country on the A riatic,just 700,000
people, sitS Side by side with the United Sta , the EU,
and Chinaon the world stage, with the Gee
currency as good as the Dollar, Euro, or
(U) Governing 3D cybers ace.
(U) This section begins by outlining the
possible paths for virtual world development and
ing existing governance structures within virtual and
5
-t .. "'""
determine whether there is an appropriate space for anvl-rnnroPrtt
vention. This is followed by an analysis of public exJ:IectjatlcJns
government protections in the virtual world. Citizens
tections in virtual environments similar to those found
especially as their online identities become extensions
Lastly, governance is considered against the evolution
How might governance address challenges posed by the
Multiverse, and the concept cO Reality+?
Technological Implications for
(U) The path of technology will likely shape the .. no:
response. In the Metaverse, one company's virtual world
nate with a proprietary network, and governments will
consider their relationships with that company. In the
applications would compete for spheres of influence. In
form, augmented reality (or Reality+) would build a layer
marion attached to real people, places, and spaces.
(lJ) See Appendix 5 for implications for governance of
world development paths.
(U) The Big Picture. Existing participation in
multi-user environments currently constitutes only a
world's online behavior. However, the emergence of a COIJ1IT10n
world interface has the potential to radically expand the
Signs that it has reached maturation may include:
0 People spending the majority of total time on the ,",."', .. 'F.
environments.
0 Total time on the internet increasing due to superior ap]plic:atllon
tual environments to more areas of human activity (from
work).
0 Commercial revenues derived from virtual errvmomment$
dwarf existing revenues from web-related sources of ""'v"'l'-
(lJ) Thus far, virtual worlds have been relegated to the '-VI, ..
industry. Despite that limitation, games based on these
tracted a mass market measured in the tens of millions of
billions of Dollars in revenue. Despite the early success of
the marketplace, it is far from clear that they are a u dJII:>I1lJlll''"'uuu. ....
nology that will replace the web as the interface for the mrerrte[.
unclear whether virtual worlds will rival the impact of web
peer technologies, which have had a profound impact on
music/film industries, respectively. However, if virtual
become a transformational technology by developing into

1> 0 Technological improvemenls in the ex-
perience. To reach a global audience,
virtual worlds will need technologi-
cal improvements that enable photo
realistic detail. Participants could
then become truly immersed in the
environment by moving from flat
screens to head mounted displays
(full three dimensional displays, 360
degree panoramas, and first person
visuals). Further, there may be a
need for new interface controls that
are better suited for virtual worlds
and environments than mouse and
keyboard combinations. Advances in
these areas will likely be sudden and
unexpected.
0 Standards. In order to spread
rapidly and become truly univer-
sal, virtual world software will need
standards that enable developers to
build and interconnect these envi-
ronments. Further, there willlikdy
need to be common methods of
user interactions or conventions of
use (for example, how a link works
on the web). Proprietary systems
with patented conventions will face
stiff and slower rates of
innovation, both of which are fatal
for global adoption. VIrtual worlds
and environments that set or adopt
standards will grow faster than those
that avoid or resist them.
0 A t/Werse The develop-
ment of a Metaverse platform that
serves as a common environment for .
th.e use of the internet will likdy be
beyond the scope of any one com-
pany to build. Instead, a vibrant
and diverse ecosystem of partici-
pants (companies and organizations)
would need to be enlisted to speed
development. Measurements of the
health (rates of innovation, number
of participants, financial viability of
participants, and diversity of focus)
of Metaverse platforms is an excel-
lent way to determine potential win-
ners and losers in this competition.()
(U) Existing Governance
(U) The governance framework for vention where
virtual worlds is somewhat different tures fail to
from that which accompanies most
social interaction. In addition to
public law and potential regulatory
schemes, virtual worlds are also gov-
erned by a combination of End User
License Agreements (EUIA) and
community standards. This gives rise
to limited an inconsistent protection
of identity, privacy, and property in
virtual worlds. Governments can
gain a competitive advantage by fill-
ing these protection gaps.
(U) Good governance requires an
evaluation of whether government
intervention is necessary at all.
VIrtual worlds strong self-reg-
ulation; it may simply not be worth
a government's effort to intervene.
This section analyzes the existing
governance structures within virtual
worlds, outlines conflicts between
those structures, and delineates a
space for limited government inter-
if any, from the game creator. EU-
LAs do not meet all of the potential
governance needs of virtual world
populations.
(U) Connnuni9 St11nd4rds &
the Govern11nce G11p. In virtual
worlds where EULAs do not cover
the entire needs of a community,
bottom-up governance develops
when users band together to enforce
their standards. Enforcement may
include blacklisting transgressors
from virtual property or expelling
transgressors from basic social groups
known as guilds. EULA terms often
conflict with bottom-up social norms
in protection of virtual personhood,
privacy, and property. In EULAs,
companies claim that the user-cre-
ated avatar is actually owned by the
company. This is akin to Microsoft
claiming an intellectual property in-
terest in all documents created using
their word-processing software. Most
virtual world creators do not enforce
property rights within virtual worlds. whether the cor:tcerrn
If virtual property is stolen, little people. For law enj:on:enrtertt,
in the way of enforcement can be triger is generally
The EUIA also permits or property. In
the company to gather personally may be threatened
identifiable (U) In the upcoming battle
informa-
tion or log hearts and minds of virtual
all instant ulations, those worlds that s informa-
tion or
theft of
their
online
identity.
messages governance needs of their cit
users send
while in a likely reap a significant adva
virtual world terms of population size and infl
regardless of
user preferences.
(U) If virtual world citizens check
their real-world rights at the door
when they enter virtual spaces, there
is no role for governance. However,
even if they do not check those
rights at the door, it is not clear that
the triggers for governance are the
same in virtual worlds as they are in
real worlds. The IC is definitionally
concerned with national security,
Similarly, threats
are real, because
have monetary
(U) This creates a
virtual property
ed government 'nt.,; .... ,..nt-onn
worlds. Where
001.rPrtlmoP"nt to act to protect
citizens' i<:(entities, informa-
tion, and property. A government
that meets these for virtual
world populations gain a com-.
petitive advantage other govern-
ments that fail to so. Populations
are likely to move from regimes
that do not supply governance,
and into worlds benefit from good
governance. In I upcoming battle
for the hearts and of virtual
worlds that
governments are
e!nective in virtual
that obtain the
'""'"rr"'n by providing
, are likely
in their
worlds.
(U) Real Citizens, Real Expe-
riences. Technology exists that
enables individuals to create virtual
worlds and games that challenge the
question-is it digital or is it real?
If virtual world technology enters
the mainstream, the number of US
citizens affected by the technology
is likely to grow quickly, along with
their demands for stability and law
enforcement. This technology has
the potential to be an agent for trans-
formational change in our society,
our economy, and our efforts to safe-
guard the homeland. The transition-
ing of these technologies into main-
stream society, tliough, raises privacy,
identity, and criminal, jurisdictional,
and revenue questions.
(U) Death and Taxes: The Inevi-
tability of Government Involve-
ment in Revenue. A second in-
for a government to assert its
authority is the ability to levy taxes in
the virtual world. The "hands-off"
approach of the US Government
to taxing internet commerce for the
past decade is unlikely to survive the
simultaneous decline of real world
tax revenue and expansion of web
commerce. Indeed, the Congres-
sional joint Economic Commission
and the Internal Revenue Service
have both closely examined the issue
of taxing real-Dollar economic gains
from virtual worlds.
(U) Once a government begins col-
lecting tax revenues, it may explore
its role in defending the stability and
continuity of operations in virtual
worlds to ensure its uninterrupt-
ed revenue stream. Govern-
ments are likely to establish
policies regulating the
use of virtual worlds to
enhance government
services for citizens.
This government
regulation over
the corporations
maintaining these
virtual worlds can take
two forms.
0 Such governance would
hopefully enable the smooth,
predictable functioning of cor-
porations within the virtual world,
and government organs-the courts
and regulating oflicials-would.share
an understanding of the complexi-
ties of virtual worlds. Corporations
are likely to be attracted to these
governance environments, creating a
clustering effect.
0 Alternatively, governance might
be overbearing and impose overly
restrictive regulations and excessive
taxation on corporations operating
in virtual worlds. The cost imposed
on corporations would likely reach a
tipping point and convince corpora-
tions to move their operations "off-
shore." These corporations might be
able to escape the legal restrictions
and tax levies by incorporating and
physically locating themselves to a
locality under a government that
would allow them to operate unregu-
lated or less regulated.
(U) The Enfort;ement Gap.
Policies, regulations and laws have
always lagged behind the develop-
ment and use of new technologies.
The lag is the result of a model of
top down governance and policy
formulation and bottom up tech-
nology development. This
relationship creates a gap. The
lack of explicit relevance and
applicability of the poli-
cies and laws and lack of
willingness by govern-
ing bodies to enforce
existing rules puts
IDOI!)Il4iiUlll.lS and
be required to
this gap and
pace of change
technologies.
would be appli-
of technol-
countries have
harassment and
punishable under
and, as with other .,_-. .... v

case law will be
laws.
68
Still, in
laws will not
policies and laws
logical innovation
will require policy TTl"' K,.,,.,.
maker to formulate
statutes, which will
and games worlds.
(U) If virtual world ....... v
1
:;y
the mainstream, crijnirtals
adversaries will
this technology for
behavior.
will need to ""''"'"'"I-
(U) Rational Expectations of Privacy in Virtual Worlds
(U) US citizens in virtual worlds pos-
sess a rational expectation of privacy,
such that a search of their virtual
homes and property may be subject
to the warra.Qt requirement of the
Fourth Amendment. In the real
world, street-comer conversations
are public, and bedroom conversa-
tions are private. Virtual worlds are
unique in that they recreate streets
and bedrooms, and humans broadly
treat these areas dilferendy. Virtual
world technology has been intention-
ally designed to elicit responses from
humans. Virtual objects and land
are designed in order to make virtual
citizens act as if they were real.
The ability to" buy or build virtual
homes or spaces, and form attach-
ments to them, is real.
(U) Protecting US Citizens'
Personal Information. in. Virtual
Worlds. The issue of privacy also
presents an opportunity for govern-
ment to protect US citizens against
threats to and through their personal
information. Congress has already
begun to move against the threat
of massive data collection on US
citizens by companies that do not
carefully protect that data.
69
Con-
gress recognizes that the true threat
to US citizens' personal information
comes from private companies and
individuals that record, track, and
index the personal information of
US citizens.
70
Spyware-computer
programs intended i:o follow the user
across the web or search the user's
hard drive--are commonly used.
Companies routinely hide powerful
programs (ostensibly with the con-
sumers' consent to legal clauses that
permit companies to search users'
computers).
71
Companies.also often
lose control of the personal informa-
tion and credit card numbers of their
customers. The amount of data that
companies gather, combined with
the common loss or theft of that in-
formation, creates a security threat to
US citizens. For example, AOL col-
lected information on users' searches.
That information was made available
to researchers, but was also uninten-
tionally made available to the general
public. This leak gave adversaries
the ability to find out what AOL us-
ers had searched for. Although the
search profiles were not identified by
name, most were personally identifi-
able because of users' tendency to
search for information about them-
selves. Within hours of the data
leak, real people were linkec;l to the
search profiles.
72

(U) In virtual worlds, the effect is
magnified because citizens have
moved significant portions of their
private lives online. Every detail can
be gathered and data-mined by the
game controller, or by other private
actors in the world.
(U) As more economic transactions
move into virtual worlds, the yield
from fraud will likely rise. And as
values in virtual property and as-
sets rises, the incentive to steal
direcdy from players within the
world will likely rise accord-
ingly. Unrestrained collection
and poor maintenance of
US citizens' personal
information is already
a national security
threat.
73
Hackers may
subvert real world defenses
by hacking passwords for vir-
tual world currencies, then
stealing the virtual rii11M"P1nr .... .,
converting them to world money.
The severity of the will likely
intensify as US move from
using the internet as tool to storing
more of their real in virtual
worlds. Eventually
and every gesture,
and processed. A um1t>rnrn
take the lead on the
by extending
on data leaks to
..( U). .. FED 'E-RA L
. .
IN. F 0 R,M A rr'a :N.
S. U P E ... R H.'I G H W A Y
PROJE.CT
...
:r
r
'1.
(U) One plausible: future would a Federal fu-
. formation Highway Acfto fund and .the best and
fastest digital in the worid.'

marion Higilway woUld spur .massive c<!Jrnmlerc:e;
. up us military opera.tions, and create
' benefits: Ameiicims .would becorne
. netizens on Earth with: the fastest
. . .. : .
.(U) just like 'Ei8en:hower's Federal Aid .. "'""' ...... u
: .. of 1956 (also rtfeqed to as theN. .
. 1956), the . government
would use 'this initiative. to' fund digital infra-
st:n.icture with'its massive matGng Amer-
ica th.e. to be w'hen into . worl(Js. .'
..
Eisenhowf!r understood the advantage
and speed o( a
that'Arm;rica needed a faster ro;td tran$J:>OrtatlOn
tern to connect.th..e coQ.ntry.
. .
(U) By default,.this massive investment
mation superhighway'initiati\le' would
States to lead in vi$i'al world ,. ..... nu.ou.
keep America in the'.forefrontof p..r,nmmPrrP
military and free cmnrrmnlil:a.tions
exchange. for a brighter
the phrase been truer, "Xf you it,
. '
(U) Stiff foreign competi on:
(U) China and South
(U) Though virtual worlds originated In the
China and South Korea have capitalized on the emergent
technology. They are current industry
ginally ahead of China-and have reaped
their virtual world strategies over a decade ago. They
cases to compare because they took two different ap]JIU>a.QIIes.,
case elements of industrial policy are coupled with
the industry. South Korea has taken the lead
a reliable cyber infrastructure while minimizing
restrictions. China, in contrast, has lagged in adopting
primarily due to the size of its population, and has also ......
regUlations for industry. China has the potential to
given China's potential user growth andfirm approach
See Table 1 for a comparison of China's and South 's virtual world
policies.c
(U) Internet Penetration and Dnnographics.
tion and low but rapidly increasing broadband penetration t>rcMcle
ground for growth. In june 2008, the total number of '"' .. , ..
1
... ,,...
ers had reached 253 million, 19 percent of its total ...
China achieved rriuch of this growth rate of 56.2 percent
of 52.62 million rural Chinese to the population of,,.. ,,. .... n.-t
parison, the United States has 220 million internet users,
of its total population. Further, China has built a capable cplmnluiUC<ii.O<>ns
to support this growth. Approximately 214 Chinese,
or 85 percent of users, access the internet via broadband.
to only l68 million broadband users at the end of 2007
users accessing from notebook computers and mobile
at 31 percent and 29 percent respectively. Home access to
increased from 67 percent at the end of 2007 to 74 ni'IY"PYttl
(U) Currendy, Chinese females account for 46.4 percent of
nese netizen population and males account for 57.2 percentf.
difference in the number of male and female netizens below 18 is the
smallest, whjle the greatest gender disparity occurs beyond 50 (see Chart
2).
(U) In general, young age, low education level, and low ....... "''&1''-
prominent features of online garners in China. Sixty-nine 1-'"''<-t:IIL
30 or younger and those with a high school education or
largest demographic, at 39 percent.
78
While the
cent of online gan1e players is below the elementary
percent are educated at or above a postgraduate level.
79
are also poorer than other internet users. Only 6.8 u..<-<:;J, ..
netizens make over 500 Renminbi (RMB), or apJ>ro:omLateljy
lars, per month.
80

.. :..
'.
"
.
::;,,: : .
' .=
h;. :
-... ., ..
..
. .
.
'
. .
.,.

. ) "'.:'
....
.r .
. !-
42
(U) State of the Industry and
Governar&ce. The Chinese online
game industry is large and growing
rapidly. 5
1
By 2008, 60 percent of
all content in Chinese online game
these restrictions as impediments to
the Chinese gaming industry, some
aspects of the regulatory regime
promote and protect the domestic
industry. Chinese authorities are tems.
84
leading game firms are Shanda,
NetEase, and Giant.
(U) Shanda, China's largest online
game operator, is a Shanghai-based
portfolio of 14 MMORPGs,
a collection of casual games, chess
and board games, games for mobile
devices, and an online literature
portal.
88
Shanda continues to grow
subscription-based l:)us;tne,ss models.
Zhengtu lowers the h<> ..., .... ...,
by allowing users to
has implemented a
paid cards, widely ~ > U ~ u
[> law gain traction in the courts, and
Shanda acquired a controlling inter-
est in Actoz, the Korean firm that
seiVed as the intermediary between
WeMade and Shanda. Actoz also
owned 40 percent of WeMade.
Shanda then emerged as the domi-
nant partner.
(U) Blizzard, the American firm
that developed World of Warcraft,
has had similar problems with their
Chinese partners, The9 Limited. In
2006, Chinese users threatened a
boycott in response to widespread
hour wait-times to log onto World of
Warcraft and sudden seJVer outages.
The9 was slow to install updates, but
was also dependent on Blizzard to
solve technical problems.!M- Blizzard
also hinted that it might tum to an-
other Chinese partner for subsequent
updates to World of Warcraft, which
had an impact on The9's stock.
The9 remains Blizzard's partner,
however, and in 2007 World of War-
craft was China's third most popular
online game.
96
(U) Replations arul Trade Bar-
riers. Chinese authorities operate
a dense and restrictive regulatory
regime that both m f1pctses
content controls

mestic media.
mercialization of
the introduction of media such
changed the
system but
state's control
.u'!"'"''u, the Chinese
government is
regulations to
nese smte and ....
... "''-"is a clear
more serious issue
is that success in
markets may well
Smtes, the
the long term
's domestic
Chinese firms
and Chinese
to
or controlled by
""""''"'"'''"'.,. The govern-
su,;pend licenses
nnWPIIlll incentive for all
0 Extensive pre-
tion
post-publica-
prevents distri-
facts and bution of many .rn.,..nrr<
points of view.
and directives prohibit discussion
of some topics and direct how to
spin other topics. Various agencies
including groups of retired cadres
and actively recruited citizen volun-
teers screen media for controversial
content and report "offenders" to
authorities.
0 Campaigns to develop and distrib-
ute "regime-friendly" media contents
that ensure that media has a pro-gov-
ernment "spin." The government
has effectively fostered a climate of
vigorous nationalism in which con-
cern for human rights, among other
issues, is understood as treachery.
(U) New technologies like the in-
ternet offer users new freedoms,
but also offer the authorities new
means of control. Chinese authori-
ties maintain a firewall that pre-
vents users in China from accessing
designated foreign web pages, filters
that block the transmission of any
content that contains specified com:-
binations of key words, and extensive
databases that track individual users.
(U) In 2002, Beijing promulgated
"Regulations on the Administration
of Business Sites of Access Services,"
which imposed restrictions on game
content. The regulations banned
content deemed obscene, harmful to
state security or territorial integrity,
inciting ethnic or religious divisions,
or disturbing social order. More
broadly, these regulations banned
"other content prohibited by laws or
administrative regulations." Pursu-
ant to these strictures, for example,
World of Warcraft's launch of "The
Burning Crusade" in China has
gone through several modifications,
inch,1ding excising nearly 10,000
Chinese words and replacing offend-
ing slang and profanities with blank
spaces.
(U) Further complicating this regu-
latory environment is the fact that
management of online gaming
involves several government agen-
cies whose responsibilities overlap.
The priorities of these bureaucra-
cies vary--from sheltering domestic
game producers from foreign com-
~ r - 7 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
work Development
of young people
internet are online
38 hours a week.
98
survey
found nearly 14 n ... ..., ... ,t of teens in
China are to !:>ecoming
addicted to the According
ftail.qemy of Social
I) ies.
100
To combat these problems,
the Chinese Government launched
a nationwide campaign to stamp out
what the Communist Youth League
called a "grave social problem that
threatens the nation."
101
civic, social, religio s, and cultural
life. The "zone of i difference" also
allows space for an w lucrative en-
tertainment indus and the rise of
popular culture. B th the freedom
(U) ... hyper-nationalism has emerged as a dominant mode of thought o the Chinese
(U) The Chinese Government
has joined South Korea, Thai-
land, and Vietnam in taking
measures to try to limit the
time teens spend online. For
China, a five-hour limitation
has been implemented on all
online games. With the explo-
sive growth in cyber addiction,
the Shanghai Sunshine Com-
mimity Youth Affairs Centre
was the first shelter created for
internet addicts. A particular
onus has fallen on internet
cafes, as these are often young
people's point of access to on-
line games, and campaigns to
restrict or close internet cafes
are now a regular feature of
Chinese politics.
(U) In the area of influencing
the culture of online games
and virtual worlds, the com-
munist regime has followed its
pattern of deliberately retreat-
ing from large sectors of social
life that it had penetrated
routinely a'nd pervasively
in the Maoist era. It did so
based on the prenrise that, to
a significant degree, an active public
sphere of social and civic life contrib-
utes to the economic progress of the
country. At the same time, Beijing
insisted--under the "four basic prin-
ciples"-that such liberalized social
and cultural activities not challenge
the rule of the Chinese Communist
Party (CCP). This policy change au-
thorized the spectacular resurgence
internet
of entrepreneu hip and the abil-
ity to select a li style from the
many choices o ered by Chinese
popular culture offer a seductive
illusion of eoli cal freedom.
time, the regime
authority to
intervene when activities in this
public sphere c ss the bounds of
political sensiti ty. The gov-
ernment has ge erally favored
promoting its v rsion of events
in a firm decl tory approach
together with i direct tactics
in enforcing th e boundar-
ies--such as p
sorship throu internalization
of acceptable n rms, fostering
the appearance of omnipresent
monitoring, an making exam-
ples of violator to deter others
("killing the chi ken to scare the
monkeys"). C nese internet
users enjoy less anonymity than
they believe, a the government
takes advantag of its citizens'
perception of onymity to
monitor those ho criticize state
policy and pro ote liberal or
democratic val
(U) Parts of the Ch nese industry
further enable the vernment's con-
trols. For example, HiPiHi, a virtual
world akin to Seco d Life, maintains
Chinese political s dards. The
firm's CEO Xu H
PiHi would design 'in-world policies
and regulations ac ording to the Chi-
nese culture" and at the company
"can make sure that pornography,
gambling, violence, or politically
sensitive material will be strictly for-
bidden."102 These restrictions do not
limit the game's international pros-
pects, however. The virtual world
targets a Chinese audience first, but
as Xu Hui explains, HiPiHi was
designed to be "an open platform
with global expansion potential from
day one." the general user
interface is available in Chinese, with
limited English translation, and regis-
tration is available in both languages,
with a 15 percent penetration of
international users.
103
ffiM has an-
nounced a relationship with HiPiHi
to optimize the technology platform
and promote the virtual world busi-
ness model.
104
(U) Chinese government policies also
affect the tone of internet users and
online garners. In part due to the
regime's fostering of nationalism to
replace Marxist ideology, hyper-na-
tionalism has emerged as a dominant
mode of thought on the Chinese
internet. In recent years, the state
has been more likely to find itself
under pressure from hyper-national-
ists critical of its dealings with other
states than from democrats and hu-
man rights activists. Online games
have already been used to inspire
patriotic sentiments among their
participants. One such game, the
Communist Youth League-sponsored
Resistance War againstjapan, plays
up the CCP's purportedly heroic role
defending China againstjcq>anese
aggression in World War II. Stirring
nationalistic sentiments is useful to
the regime only up to a point. In
the real world, violent anti:Japanese
demonstrations have embarrassed
the Chinese government. In the
virtual world, Chinese garners have
ganged up to "kill" Korean players
in Chinese online games and the
Chinese government has banned
some expressions of anti:Japanese
nationalism.
(U) Some Chinese may find ways to
use virtual worlds and online games
to subvert the state, but the Chinese
government has demonstrated a
strong record of using new media
technologies to bolster its effective-
ness, legitimacy, and ability to control
new spaces. Virtual protests that are
organized in the virtual world but
take place in the real world will likely
be at most episodic and intermittent,
and will likely pose no serious chal-
lenge to the state.
(U) Military. The Chinese People's
Liberation Army (PLA) employs 3D
virtual environments for both simula-
tion training and for public opinion
analysis relevant for political indoc-
trination of PIA troops. The PLA
General Political Department (GPD)
is directed to track
topics and assist in
opinion.
105
To
PLA uses network cpr1ter1t
tion technologies,
used by corr1me1rcia\
marketing nnrn,,..,..,1
analyze the do1me:st;
ronment in China
egorize and detect
in populations in
counter those uu:::m,::::;.
platforms includ-
ing virtual simu-
lations.106 The
PLA currently
uses virtual envi-
ronments to train
traditional "Red"
and "Blue" exer-
cises.I07
Chi-
messag-
ing service
provider,
createdQQ
Coins to allow cus-
tomers to pay for
online services. Since then, QQ
Coins have become very popular
for a range of uses. In 2006, more
than 22.4 million people used Ten-
cent's QQmessaging service and
also regard QQ Coins as a more
convenient than RMB for online
payments. QQ Coins appear
more safe and practical because
the Chinese do not commonly use
credit cards.
110
Some internet
formal
cent in
40s, and 27.6 percent
in their 50s (See Chart 3). Seventy-
four percent of internet users are
male, while 62 percent are female.
Approximately 70 percent of urban
dwellers use the internet, compared
to 46.2 percent in rural areas.
112
(U) Approximately thirty-seven mil-
lion netizens go online every day
and 57 percent regularly visit gam-
ing sites.
113
Six out of I 0 South
Koreans aged nine to 39 consider
themselves "frequent online game
players."
:
to provide an institutional and legal
framework to guide the industry in
order to facilitate national economic
competitiveness and to regulate the
social impact of the industry. In
1999, existing legislation govern-
ing the music and video industries
was revised to incorporate online
games. In the same year, the govern-
ment also created the Korea Game
Promotion Center renamed
the Korea Game Development
and Promotion Institute) to extend
government and financial support,
to promote game exports, and to en-
able new gaming company start-ups.
They later established the Game
Culture Promotion Council to facili-
tate the gaming industry's goals and
to foster a "healthy" online game
culture in society, and developed a
five year plan covering 2003-07 with
the goal of keeping South Korea one
of world's top three game producers
through 2010. Finally, in April2006,
the Ministry of Culture and Tourism
founded a Culture Industry Bu-
reau to promote and monitor game
industry and culture in collaboration
with the South Korean Ministries
of Commerce, Industry and Energy,
and Information and Communica-
tion.
(U) MMORPG and Virtual
World Industry Leaders. As a
consequence of these policies, South
Korea's game industry has seen the
emergence of several major and a
host of smaller companies, many of
which have an extensive internation-
al presence. Among these are:
o NCSoft. Founded in 1997, NC-
Soft pioneered MMORPGs in South
Korea arid produced the country's
first major success, Lineage and its
follow-ons.
subscribers.
free-to.-play model,
found or bartered
or purchased with
Pay Pal account.
from South Korea
to 200 million US
in 2006. Wizet
MapleS tory to .. ... v
pleStory DS.
0 Nexon. Offering its first game negotiations with
1996, Nexon pioneered the free- soft for further
to-play model that has extended MapleStory

0 WeMade Entertainment. Found-
ed in 2000, WeMade Entertainment
produced the internationally popular
games Legend of Mir II and III.
0 Gravity.
0 In August 2007, Shinsegae De-
partment Store opened a "virtual
reality i-Fashion shop" that offered
shoppers the choice of trying on
clothing without actually coming to
In 2002, this
company
launched
Ragnarok
Online, which
has taken
(U) Korea has invested in a
future-ready infrastructure
in order to have the advan-
tage ...
the shop. Custom-
ers input their body
measurements onto
a smart card that
enabled them to
model clothes
on personal-
ized avatars off in several
international markets.
0 SK Communications. SK pro-
duced the massively popular social
networking platform Cyworld.
South Korea's pervasive broadband
infrastructure has also enabled an
increasmg array of virtual world
applications. These include uses by
the South Korean government and
military, as well as adaptations in
broader society:
0 In April 2005, the South Korean
Army opened its Korean Combat
Training Center, modeled
after the US National Training
Center, uses virtual technology to
simulate combat. In "simulating
actual combat situations," the Center
has improved soldier performance in
several areas, including reduction of
injuries from friendly fire, proficiency
with equipment, and dealing with
the stresses of real combat.
118
0 In March 2007, the Won sect of
Korean Buddhism set up a temple
in Second Life and announced plans
for a virtual ceremony to mark the
Buddha's birthday. By such means,
the group hoped to
among both Koreans and foreign-
ers, describing its presence in Second
Life as "a good opportunity to reach
out to people beyond the barrier of
our own generation."
119
and then make decisions
about whether to buy
them.l
20
0 In September
2007, the Office
of the South Ko-
rean President began
offering a "virtual reality
tour" of the Blue House, the
president's official residence and of-
fice compound, via the internet.l
21
0 In March 2008, Hana Bank
began offering a Second Life-like
virtual world to teach basic econom-
ics to teenagers. By participating
in economics classes on the bank's
course is donated
to a non-profit
charity for needy
children.l22
(U) Regulation. Pres-
sure to regulate on-line
games in South Korea
largely proceeds from eco-
nomic concerns. The govern-
ment faces two conundrums:
to regulate the gains made
in the virtual economy through the
trading of on-line game items, and
whether to allow the exchange of vir-
tual currency for its real-world coun-
terpart. The dilemma for the South
Korean government in responding to
both issues has been to regulate the
industry without bltlntiinl!
and prospects for
South Korea's
motion Law, passed
Assembly in 2006,
latory foundation
and virtual world
plained,
for ex-
ample, that
the game
ratings
standards
are more
tolerant
of degrees
of violence
than are
on how to
,...,.,., ....... ...,the trading
game items for
real-world
currencie!l-:actiVitie!l that by 2006
estimates,
approach-
Ultimately,
:.nnr,.,.,.,.n the trade
prohibited their
.... , .. _ .. ln..,ln currency.l23
have required
Alrr>nn,.,. these have
been the problem of hackers--alleg-
edly Chinese-plundering on-line
trading sites, and the spectacular
growth of illegal online gambling
and "virtual black markets."
124
(U) South Korean Culture and
Identity. The South Korean IT in-
ture and iso-
lated it from
the major-
ity of its
industrial
resources.
(U) In the case of information
technology, the Korean govern-
ment has assumed the role of the
proud parent, doing all in its power
to foster and facilitate advancement
agreements.
(U) The gaming scene has changed
(U) South the standard of what is socially ac-
Korea's ceptable. When PC games ftrst
roots, entered South Korea, par-
hardened z ents did not approve
by chal- . of them because
lenges, have . they perceived
. combined , the activity to be
to estal;>lish . a distraction that
a vibrant culture z pulled students away
pected and all are that reason, gaming was
in a hurry to stand . very much an underground
out amongst their peers. activity. With gaming mov-
Competition dominates the ing mainstream, however, some
mr#h, ...... are actu-
online
children are in
their children
in partner-
producer.
,.w"'"'u"" internships
'"'".,'"''trv as well
(U) Use of virtual
actiVity that-is

stream in South
Linden Lab signed
Korean company,
to provide its
lored for South
fall of 2007, only
users were openly .'+ .............. ....
ans. However,
Korea's presence in
including Second
sharply, especially
interfaces improve
standards that the .. ..
1
v ...
1
culture. This is what drives par- parents are
ents to push their children to study encouraging
hard to gain admittance to the best their children to
schools and to gain advantages. This play games to
is also what drives students to study promote social
... and maintain its distinc-
tion of leading in the adop-
tion of new technologies.
hard to honor the wishes of their interaction.
parents. It is not enough to be sue- The games are so widely played
cessful; there is an enormous drive to that a child who does not play runs
be the best. the risk of being an outcast if _he or
51
nese government.
On the first day of
the site's existence,
over 5,000 users
visited and signed
a virtual petition.
In the two days
that followed, over
250,000 users
signed the petition.
This sparked the
duplication of the
islands in Second
Life. Shortly there-
after the South Ko-
rean flag that flew
over the islands
was mysteriously
replaced with a
Japanese flag, spur-
ring Second Life
to install a security
monitoring system
to regulate future
changes to the
islands.
126
(U) PC Bangs.
Even with a 90
percent satura-
tion of broadband
accessibility, many
South Koreans
prefer to do their
gaming in local internet cafes called
"PC bangs." Currently over 27,000
separate locations offer member-
ships or pay-by-the-hour service. PC
bangs consist of dozens of comput-
ers pre-loaded with the most popular
games, all connected to high-speed
internet for lag free gaming. This
provides customers with an environ-
ment where they can go meet friends
both online and off, any time of
ing garners a place to practice and
an endless supply of competitors to
challenge.
(U) PC bangs have emerged as places
to learn about new popular games.
Web sites keep track of what games,
as well as which genre of games, PC
bang patrons play the most. Gen-
erally, Role Playing Games (RPG)
have dominated as the most popular
ers report annualiifl<:on:tes
the equivalent of
so much South
the game,
premiered its first 4e1rnonstrat]on
Starcraft II in
to a crowd of 1
will likely tailor
potential majority u ~ o l u i u l
South Koreans.
culture would therefore likely affect consumers of
States.
(U) South Korea's homegrown gaming industry has also proven to be a force
to be reckoned with in the realm of MMORPGs. Though World of War-
craft has outsold all other MMORPGs in history, NCSoft's Lineage series has
achieved a strong second, outselling even Sony's Everquest series, with a peak
of over three million global subscribers.
128
(U) Were American households to gain access to broadband internet with
speeds hundreds of times faster than present DSL connections' at a fraction
of the cost, and were levels of such access to approach those of South Korea,
America's future inay well resemble South Korea's present in significant re-
spects. Though some of the effects are lost in translation, there may be profit
in studying South Korea's example. For a brief discussion of other Asian
states' virtual world development, see Appendix 7.EJ
.. :
. a.. .- t:
. ' .......
. i : ...
.. .
... .:. : . .. : - t. ; .
(U) Intelligence,
counterintelligence,
an.d law enforcement.
(U) It Is likely that the growth of virtual and gaming en"i-
ronmenrs \Vill have far-reaching cultural, social, economic, and perhaps
even political implications. Some effects be the result of intention-
ally nefarious actors; others may inadvertently result from technological
developments having unanticipated effects on human social interaction
and personal idemilicarion.
(U) Virtual and gaming environments may have certain positive effects,
but one cannot ignore the possibility that they may also pose novel and
unpredictable security threats. One can already observe real-world ac-
tors transferring their existing loyalties, beliefs, agendas, prejudices and
hatreds into virtual and gaming worlds.
(U) The growing number of global users, in conjunction with ongoing
changes, will likely increase the difficulty that the Intelli-
gence Community (IC) will encounter in its efforts to monitor the vinual
realm. Accordingly, outreach programs,that enlist users as educated
observers and reporters \Vill be required to survey current and emerging
systems more.
-
"' *%'' rl'; "B& z a; &ae
i'&EIBCC f i
(U) Scope of the Virtual World Intelli-
gence, Counterintelligence, and
e'
57
1)
3)
Law Enforcement Security __ ------(b )(1)
--- (b)(3)
(U) l\tl1en considering the human scope of the_potefifial security threats
posed and the opportunities world platforms, one must
first distinguish between by intenrionally nefarious actors and
inadvertent gene:(ared by technological developments in the virtual
world:. Amttiig these nefarious actors are nation states and their inrelligence
non-state actors of various t:)1>es, and individual
(U) Nation-states can be categorized as hostile, neutral, or friendly. Hostile
states are openly hostile toward, or consistently pursue policies that directly
challenge, the United States and its allies. Neutral states are not generally
openly hostile toward the l)nited States, but nonetheless often pursue poli-
cies that negatively .impact the United States and its allies. Friendly states
generally pursue policies that favor the United States, though they too may
occasionally diverge and pursue oppositional policies. Non-state actors fall
into several categories, including rhe follmvi.ng: i>
58
0 Organized criminal groups
o Extren{ist political and religions
groups
0 of hackers or griefers
0 Non-governmental organizations
(NGOs)
(U) Each of these various nation-
state and actors may
attempt ro exploit virnml worlds
on their motivations, in-
tentions, and objectives. The section
bdow will focus ou extremist political
and religious groups.
.(U} In addition, new tecluiologies
mav have unanticipated effects on
par;erus of human social interaction.
and persoual idcur.ificarion. Indeed,
it is likelv that. virtual world technol-
ogy will have far-reaching
cultural, social, and
perlu1ps t'ven political implications
that havt' nothing to do with the
nefarious intentions of enemy actors.
For example, rhe formation of \irtual
comnmnities in which people identif)'
more dosely ,.,.ith d1cir fictional ava-
tars and in-world comm.uuitie,s than
with their offiine selves or neighbors
mav ,:vel! have the ellcct of weaken-
ing' overall social solidarity
existing nation-states, undermin-
ing their sovereigmy. Virtual world
technology may have certain positive
effecrs as wdl, but one cannot ig11ore
the possibility that it may aho pose
(U) people identify
more closely with
their fictional
avatars .,. than with
their ine selves
iwvd and
unpredict-
able security
rhreats. Of
course, it is
even more
likdy that.
n'al-world
actors will simply transfer d1eir exist-
ing hatreds, prejudices, agendas,
and loyalties into the virtual
world, whid1 is already occurring. 0
(U) Extremist groups are organiza-
tions that embrace a raclical politi-
cal or religious ideology that both
advocates a fundamental transfor
tion of existing political, social, or
economic quo, and demands
that their proclaimed constituencies
take action to initiate this
marion. An iclt)ology is a coherent,
stmctured, and systematic
that purports to identify exactly
what is with the existing
world and to indicate precisely what
must be done in order to right those
perceived '''rong-s. Radical
are normally characterized by moral
absolutism, doctrinal rigidity and
Puritanism, a l\-fanichean division
of the world into "good" and "evil,"
and an insistence that those desig-
nated as "evil" be fought
decisively defeated, or even com-
pletely eliminated.
(
(U) From the perspective of ex-
tremisrs, human actors are vi.ewed
through a dualistic black-and-white
ideological and moral prism, one
that ignores rhe multitude of shades
of grey that actually characterize
human life and beha,ior. Extremists
perceive humans to exist on one of
two sides of this divide, either with
the forces of "righteousness" and
"progress" on one side, or with the
forces of "darkness" and "reaction"
on the other. Extremists tend to be
h)ver-mor.ilistic "tnte believers" who
are moral "to a fault." They gener-
ally cannot tolerate human flaws
ambiguity of any kind.
The intelligence and law enforce-
ment communities should not ignore
the proclaimed ideological agendas
of extremists or asstm1e that they
are nothing more than superficial,
rationales des!gued
to conceal selfish underlying motives
or baser human instincts. Extremists
take their ideologies very seriously;
they are such groups' raison d'et.re.
(U) Virtual Worlds: Havens
Jar Illicit Activity. Much of the
information in the public domain
about the alieged terrorist exploi-
tation of virtual worlds has been
speculative rather than based upon
substantive eviclence.
129
Although'
there is reliable information available
t-wmg party Le Pen,esta m
December 2006 a virtual headquarters in Second Life on a shopping island
called Porcupine. The FN issued a press release boasting that it was "the first
polii:ical party in France and in Europe tci open an official and permanent
representation in Second Life."
133
resisrance ro rl1e FN's presence in
Second Life took the form of garden variety political protest. Leftist groups
such as Anti-fN Second Life (antifi1-sl) and Second Life Left Unity assem-
bkd, bore placards, wore t-shirts, and set up billboards on the lauds of sym-
pathetic neighbors to demand that the FN remove itself from Second Life.
Soon after, both sides began shooting at each other and c.:urying out other
types of attacks. By early January the headquarrers a,ul FN members had
disappeared entirely from Porcupine. However, real-world FN spokesmen
claimed that the group would tighten security and return to Second Life.
(U) As of this report, there is little evidence that miJjtant Islamist andjihacl-
ist groups have begun cxtensivdy exploiting the opportuuities presented by
virtual worlds. So far. most of the commentaries in the media on this subject
have been speculative and largely devoid of hard

However,
Singaporean terrorism researcher Rohan Gttnaratna claimed that during the
summer of 2007 he monitorr.d the activities of 12 jihadists, most of whom
were based,in America and Europe, who had "assumed identities'' in Second
Life. Some of these individuals had
selected innocuous monikers for their
avatars, whereas others used inten-
tionally provocative names.
135
(U) Indeed, as the illustrative exam-
ples above suggest, it is only a mat-
ter of time before numerous other
radic-al political and religious groups
set up shop within Second Life and
other virtual world environments. As
a result, real-world political conflicts
wiil undoubtedly continue to spill
over into the virtual world, perhaps
at times with unanticipated and
potentially harmfhl consequences.
It remains to be seen whether these
activirjes end up having serious
national security implications. For
more examples of how extremist
groups have established a presence in
virtual worlds, see Appendi.x 8.
(U) Emerging Environ-rnents
and Nefarious lnte1ations, It
has already been noted that as yet
most extremist groups do not appear
to have made extensive forays into
the virtual world. However, given
that the more sophisticated groups
of this ryve, including al-Qa'ida,
have exploited the internet in very
refined \\rays, they will likely soon
seek to exploit newer virtual world
technologies for recruiting, raising
and transferring funds, training new
recntit:s, conducting reconnaissance
and surveillance, and planning at-
tacks by using virtual representa-
tions of prospective targets. A'>
virtual world tedmologies continue
to improve and cliffuse to other parts
of the world, it is very likely that the
threat posed by extremist groups in
the virtual world ,..,-jll substantially
mcrease.
(U) The question is how such groups
may use and exploit these platforms,
and what the impact of
these developing technolo-
gies will be. There are two .,
60
basic views on this mat:rer. Th6sc
who focus on the technical aspects
of worlds generally believe
that dtt' rapid of this
teclmolog-y will be "game-changing."
It could have revolutional'); t>tTects
on the formation of human
patterns or" social interaction, and
ulrilllarely, ou c.ultnre and society. In
short, their view is that the effects of
virtual worlds are likely to he aualo-
. gous to the social, political, cultural,
and economic impact of the printing
press. In contrast, dwse who focus
on the human dimensions of virtual
worlds tend to be more pragmatic.
They believe that humau beings will
reinain more or less as they are, bur
will simply seek to t>xploit these new
technologies to do the things that
they are already in dined to do.
136
In
the end it is likely that the reality will
fall somewhere between these two
wntrast:ing perspectives.
To predict hmv extremists and ter-
rorists may exploit evolving virtual
world environments, it is best to
consider how tht>y have long made
ust' of internet. Although many
had predicted that terror-
ists and other nt>farious actors would
. regularly carry out highly dismp-
tive and perhaps clestmctive acts of
cyber-terrorism, cyber-sabotage, or
cyber-warfare against the network
infrastmcture and tangible physi-
cal targets, they have instead used
the internet much like other politi-
cal organizations and businesses.
137
Terrorists have used the internet
primarily for commtmicating to three
primary audiences-their supporters,
the international communi!:); and
their enemies--in order to "present
their case, propaganda,
and recruit followers and supporters"
in a "direct and uncensored'' way.
138
In addition, they have employed
the internet for several overlapping
instnunental purposes, including:
0 Information gathering and data
lllllllllg
0 Networking
0 Recmitment, spotting, and mobi-
lization
0 Posting detailed instructions and
online manuals
0 Planning and coordinating specific
attacks
0 Fund-raising
0 Criticizing rival terrorist
and breakaway


(U) Ironically extremist groups with .
an ami-modernist ideology,
globaljihadist networks, have often
been the most adept at exploiting
new technologies created by their
thoroughly modernist \Vesteruen-
emies.140 So far, cy1Jer-terrorism and
cyber-warfare have been overrated
threats, at least with respt>ct to terror-
ist groups.
141
(lJ} The authors of a Canadian
intelligence center report concluded
that they could find no "definitive"
evidence that :Mi\tiORPGs or "per-
sistent virtual worlds" had been used
to facilitate real world terrorism or to
communicate, propagandize, train,
0------------------------- -
(U) lnteJlfgence and the Virtual World
/
(U} lnformatio" Access.
(U) Publicly posted information available through virtual worlds that pro-
vide for user-generated content is inclusive of iriformation about individu-
als, shared interests, commtmity-based organizations, academic institutions,
corporate interests, and government. Virtual worlds that do not provide for
user generated content continue to facilitate social interaction and com-
nmnication access. While this distinction between the t\vo t)'ves of
virtual worlds is important, both versions provide the IC with access , .
to information that t not be otherwise available ...
(U) ''Vithin these'! user-controlled
areas, individuals create multi-di-
mensional renderings of homes and
businesses. These virtual constmc.ts
.frequently display items of personal
significance, providing insight into
individual imeresrs and passions. In
many instances, these user-created
provide h)verlink ac.cess to
traditional web sires and blog sites,.
providing detailed informiltion about
a topic that the found to be
of interest.
(U) A'> an example, within a Second
community called
Ne.ssus, users have created billboards
depicting child victims of armed
couUicr.s. Visitors may access victim
can likely be attributed in
part to the interactions that transpire
between individual avatars. Hiding
behind SCreen llalll{'S and avatars,
world nsers demonstrate a
willingnt"ss to engage and discuss
in manners that are rarely lound in
non-intimate social situations. These
interpersonal communications can
take place in a number of venues
and recreatt!d social settings, such a<;
virtual nightclubs, or in general areas
of congregation.
(lJ) Topics of discussion can be
personal, controversial, and de-
railed. The perception of anon},n-
iry can dec-.rease users' inhibitions
and increase the likelihood that they
these areas, detailed information
about the topic or links to related
web sites is commonplace and can
provide a visitor a jmup-ofl:.point
for locating additional resources or
persons re-lated to the topic. area.
Several of these sites and member
groups include community organiza-
tions, academic instittitions, corpo-
rate environments, and government
agenc1es.
(U) Community-based and non-gov-
ernmental organizations are using
tl1e virtual world to provide infor-
mation about their purposes, their
membership, and their efforts. Sites
such as "Camp Darfi.1r" on Secon<l
Life provide insight into organiza-
and sihmtional information
through intt!raction with the
user-created billl)oard. Homes
(U) Hiding behind screen names and avatars, virtual world users
demonstrate a willingness to engage and discuss in manners
that are rarely found in non-intimate social situations.
that users may tour in tins
neighborhood, as in other
neighborhoods, conrain objects that
the "homeo,vner" considered of
sufficient interest to place in their
personal space. Ultimately, these
personally "owned," yet publicly ac-
cessible, artifacts provide background
and contextual information about
the individual in control of that par-
ticular portion of the virtual world.
(U) 1-dversariu.l Anonytni9':
FtltuJe Challenges. It is impor-
tant to note the increasing likelihood
that adversaries may build or con-
trol these c.onstmcts. In the Dark
Web srudy titled "Cyber Extremism
in Web 2.0. An Exploratory Study
of llllernationalJihadisr Groups,"
the authors "found examples of
buildings owrwd b)' groups with au
apparent extreme [sic] background.
Those buildings (virtual headquar-
ters) to indicate the groups' .
wish for a long-term presence in the
virtual world.''
144
(U) The possibility for users ro estab-
lish control witluu these virtual world
divulge personal information. In rhe
cyber extremism Dark 'Veb report,
the authors stare that "the virtual
environment can help break clown
inhibitions and make interactiou
more realistic and lively."
145
\Vhile
somewhat si.Iuilar information can be
found posted on traditional web and
blog sites, the virtual world provides
au immediate platform to question,
explore, and expand upon the ideas
presented through real time conver-
sation, by voice or text chat.
(U) The creation of topical areas
of concern demonstrates shared
interests in the virtual world among
individuals. Users have
developed sires and member groups
as a way to share common experi-
ences and interests. These areas are
ty]>ic.ally available to t.he public at
large and offer relevant information
servict"s to the visitor. ln this vein,
Second Lite areas devoted to such
diverse areas as auto religion,
and lireramre are easily located on
the virtual world platform. "Within
tiona! efforts, often times serving as a
platform for fimclraising. These sites
provide text, graphics, and videos
that the creators feel are supportive
of their positions, while allowing
exrernallinks to similarly themed
traditional web sites. These sites also
serve as links to groups, agencies, or
individuals that rhe site creators feel
are compatible with their aims. Sim-
ilarly, these sites frequer1dy offer
the visitor the opportu-
nity to engage with the .
organization in some
capacity outside of the
virtual world.
(U) Academic insti-
tutions in virtual
world environ-
ments ciffer ac-
cess to lecmres,
presentations,
faculty infor-
mation, vir-
tual smdent.
social activ-
libraries and school achuinisrrarive
information. At present there are a
number of colleges and
universities rhat have established a
presence in the virtttal world, but
the:: number of institutions currently
online appears 1'0 be relatively small.
In many instances only portions of
the universitic.>s are represented in the
virrual platform. In the case of San
Jose Stale University, only the School
of Library ami Information Sciences
is represenred at this rime. This ap-
pears ro be a growing, yet: not fully
developed, avenue for information
dissemination and public iufon na-
tiou outreach by stmlems and stalT
involved in higher education.
(U) Corporate interc.>sts inunclare the
virtual world, providing informa-
tion abour products, straregic alli-
ances, upcoming events, corporate
l:il.n.Lcrure, and corporate governance.
The corporate world has provided
an interactiw forum to afiord global
customers information ami trainiug
relative to a company's core com-
petencies aud product lims.
times, companies, both foreign and
clomC"stic, host: both public and pri-
vate areas in order 10 allow access to
information, while providing spaces
lor peer-to-peer collaboration and
business development outside of
what is perceived ro be
the public domain.
Using the Second
Lift- sitt' of Sony
B?v[G as an example,
portions of the public
space are used 1"0
marker newer artists
and product laum:hes
while pro-
... --r'-.
viding connections to traditional web
sites fore-commerce purposes.
Official governmental postiugs,
both US and foreign, currendy ap-
pear limitc.>d in scope and munber.
Those government agencies that do
maintain a virtual presence offer
information of educational interest.
Frequently this information includes
updates on desrination information
and legal requirements for rravdc.>rs.
The Estonian Embassy on Second
Lile, for example, provided informa-
tion about the easing of visa restric-
tions for travelers moving between
Estonia and Turkey.
146
Other edu-
cational information alTorded in the
virtual environmeur includes scien-
tific data, as evidenced by the.> Second
Life interactive site sponsored by
the US Department of Commerce's
National Oceanographic and Atmo-
spheric Administratiou.
(U) virl'ual worlds diller from
standard web sites, however, is the
ability to access people online and
the interacrion that ensues in the
virtual space. In each of the Sec-
ond Life examples c.itcd pre\iously,
the virtual worlds created by users
provide real-time access to persons
related to the subject matter.
This immediate access allows con-
versations that e::-..1Jand upon content,
providing context and insight.
Personal interaction allows
question and answer ses-
sions, through text or voice
-:hat. This significantly
increases the ability to
gather information
beyond that of the
where infonnation
is pushed out to
the rc.>cipient and
there is a limited
opportunity to
question the ma-
terial. Through[>
I
I
I
/(b)(1)
,' (b)(3)
these diswurses, infonnarioi1 can be
developed f.:'lr beyond the interactive
processes virrnal spaces previously
olfered.
(U) Prese11t Day l11telligence
Considerations.
(U) Upon examination, it appears .
that virtual spaces afford adversar-
ies r.he oppornmity to disseminate
propag-anda and to inculcate oth-
ers to their ways of thinking. Us-
ers are able to contact others and
to engage in private conversation,
presenting text and video in support
of their ideals. \Vithin this venue an
exchange of ideali c;;u1 transpire and
indoctrination can occur.
(U) Future Intelligence Consid-
erations. The evolution of the
Internet and technical changes to
virmal world ,.,.-i}J be of
concern. The inion nation available /(b)( 1 )
in myriad ways in the virtual work}/ (b)(3)
may be beyond the ability of thdC
to address alone. The a-;silltanpe of
persons online shonld be a consider-
ation. As highlighted by authors
of rhe Dark \Veb cvbcr extremism
I
report, "as .the virtnaJlvorlcl (b)( 1 )
forms contmue to (b )(3)
there -1:> also nmch
.1-
- unknown about how
'nmdr automated col-
lection and analysis
can be performed
in these environ-
ments.''
147
(U) Virtual \Yorkls
offer the opportunity
to observe technical
exjJertise in game
play and creative uses
of virtuar"in-world"
tools. These observa-
tions may come in
real time during gam-
ing or in retrospect
through analysis of
artifacts lelt behind on virtual world
platforms. Frequently the artifacts
will ideuri(v the creator through as-
sociated metadata. Users at
strategy, team coordination, object
creation, and use of these platforms
may present themselves as techni-
cal resources or future employment
candidates.
(U) For a discus.<;ion of potential use
of virtual geospatial modeling, see
,.,., .. ,.,h .... 9. l'2
(U) The Technical Environment:
.A Challenge and an Opportunity

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/
/
/
/
/
/
/
/
/
/
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/
/
/
/
/
/
/
(U) Individuals or groups of indi-
viduals could use voice communica-
. tion dients embedded within virtual
world or online gaming environ-
ments ro make it difficult to monitor
and track their communications. For
(1)
(3)
1)
3)
ex<tmple, as of September 2007 over
330,000 Second Life accounts were
using an integrated voice service to
acllons pl1ost:cultal)le
under Title 18 (criminal) and Title
26 (ta."\) of United States Code, along
wirh th:it which is commonly consid-
ered criminal under state st.atutes.
. (U) Virtual worlds are inherently so-
cial comnmni ties. All cmmmmities,
whether physical or contain
tempted to kidnap her "ex-virtual"
boyfriend.
101
The cour>le met in
Second Life and began a virtual
relationship, which ended shortly
after they mer in the real world. The
.. ..

. ' .
.. . :.
woman is facing dtargt$ of attempt-
ed kidnapping, burglary, and aggra-
vated menacing.
peer-to-peer
inaccurate perception that their com-
munication and file trading activity
is more secure from law
enforcement scm tiny when
it does not pass rhrough a [>

I>
third party server. For rhis reason,
specific. attention should be given in
the fntnre to those virhml chat plat-
forms that are structured to provide
peer-to-peer c.ommtmicarion.
(U) Virtual worlds are not wid1our
illicit drug activity and use, another
source of criminal activity with na-
tional security implications. Secli-
miue, li)r example, is a virtual drug
ence is with peer pressure in Reel
Light Center to try it, this act.nally
gives them an experience that they
can call on later as to whether they
want to try it in the real-world, or
uot, ralhtr than just being carried
away by peer .... "::H
(U) Con-artistry in virtual worlds
demonstrates another implication
for law enforcement. of
(U) these platforms allow groups to justify their criminal
behaviors in a community of like-minded individuals
available for in Second
The web site advertising this and
cther \i.rt.ual drugs states rha.t, "Sedi
mine is a virtual pharmaceutic [sic]
that is designed 1.0 be fdt by tht' user ..
It i:; only lound on Sc<:oud Life and
developed by Owner Maltese. Sedi-
miue comes in a variety of strengths
and soon also in different forms."
152
Two virtual environments, recllight-
center.com and virtual-vancouver.
com, encourage users to engage in
acti,iities that include the virtual use
of illicit drngs.
(U) Advertisernents for these vir-
tltal worlds feature.the fact that
rhc \i.rtualuse of these real-world
illicit dntgs is ''completely legal" on
these platl'orms.
153
It is important
to note that. both sites provide links
to a parent site, www:.ntherverse.
com, which allows users to exchange
personal identifying information.
The three sites are interrelated such
that iudividuals can eugage in acti\'i.-
ties via their avatars that ultimately
lead ro the users dwosing to "con-
nect" in the aeal-wc:HId. \Vhen asked
inn media inteniew if he thought
would lt:ad to real lire drug use,
Uthen-"erse CEO, Brian Shuster,
said, response would be, that if
someone ha"' [norJ tried marijuana in
the real-world, and their firsr experi-
anonymity involve bot-h the often in-
accurate perception of anonymity by
actual and intended victims and the
real potential for anonymity for those
perpetrating the acts. The ability of
perpetrators to victimize an individ-
ual that is located in a diflerentjuris-
diction or diflerent country in many
instances poses an insurmountable
challenge to la'v enforcement. The
technology and imniersive nature
of virtual \Yorkls allow criminals to
engage in traditional fraud schemes
in innovative ways .. As an example, it
is now possible to "socially engineer"
vi.ctims with whom they would have
needed ro meet in the real-world.
One can describe social
as a non-technical kind of intrusion
that relies heavily on lmm:in interac-
tion and ollen involves tricking other
people to break normal security
procedures. There are numerous ex-
amples of ,;ic.tims providing personal
identifying and financial informa-
tion in virtual worlds through social
engineering redmiques that mirror
real-world (con) fraud
schemes. The evidentiary trail left by
these virtual cons, while it may
is inarkeclly diffenmt from that. which
is commonly encountered in these
l)1X'S qf clines, making it dillicult
for law enforcemem to monitor.
(UJ Fut11re Challeltges for Law
Enforcem.ent i" Virtual Worlds.
Policies, regulations and laws have al-
ways lagged behind the development
and use of new technologies, the
result. of a top-clown model of gov-
ernance and policy lornmlation and
bottom-up technology development.
The lack of explicit relevance and
applicability of the policies anclla,vs
and lack of willingness by govern-
ing bodies to enforce existing ntles .
puts indivicluals and the security of
the homeland at risk. A new model
is necessary to address this gap and
the rapid pace of change within the
technologies. This model would be
applicable to all forms of technology;
not just virtual worlds
and gaming technologies.
(U) The population of users remains
geographically diverse within virmal
worlds although heavily used by US
citizens. This creates an additional

rolaw enforcement because issues of jurisdictional boundaries and (U) There is significant potential for
logisrical constraints on extradition can arise. Another concern is the gen- organized criminal activity in vir-
era! lack of training for the domestic law enforcement community regarding tual wortds, particularly those with
virtual property crinws. An individual reported the theft of Final Fantasy real-world economic equivalents and
XI !VI.MORl'G virtual property an equivalent value of about 4-,000 US conversions. An additional concern
Dollars to the Blaine Police Department in Minnesota. Both law enforce- lor law cntorc.ement is that the n."g1t-
ment otlicers ;mel prosecutors told the victim that virtual irems "are devoid latory e-nvironments for companies
of monetary value," and thns no crimes had actually been

designing and implementing virtual
This is not an example of misfeasance, bur rather of a lack of understand- worlds and virtual ecouomies are
ing on the part of local criminal justice authorities. "While this example murky at best. As an example, like
had a marerially insignificant monetary value for the national economy, it other virtual worlds, Linden
is scalable when one considers the number of potential US victims that are Lab-the company with control over
to participate in fhrure virmal worlds. Second i..ife---:maintains significant
(U) This is also a national concern if US-ba:;ed online service providers
are directly victimized. In january 2008, Tokyo police arrested ajapanese
teenager for stealing virtual property from Nexon, a Koreau virtual world
service provider.
156
Initial estimates of the direcr theft equated to S340,000
USD, with the total value of this crime being much higher. In this instance,
the 16 year-old snspect allegedly used his avatar in Nexon's Mabinogi virtual
world to obtain tlw private login name and password of an employee of
Nexou's Tokyo branch through social He subsequently used
this information to illegally access the company's servers and transfer the
in-world currency of exchange to his account.
amounts of customer money in trust.
These are not monies paid to the
bm rather those that cus-
romers maintain in the company's in-
world currency of exchange so that
they can engage in virtual commerce.
Linden L<b voluntary disclosures
show that on August. 1, 2008, cus-
tomers paid over 5,226,000,000 Lin-
den Dollars in tmst. That equates to
almost 20 million US Dollars.
157
(U) Most other companies that have
created virtual currencies with real-
world exchange rates do not make
similar disclosures. It is a reason-
able that several billion
US Dollars are similarly hdd by the
companies controlling virtual worlds.
l'v[any of these companies are located
outside the scope and authority of
US la\v enforcement. Those compa-
nies, such as Linden Lab and Bliz-
zarcl, which are US companies,
structured such that their require-
mems to comply regulatory
measures, such as the Bank Secrecy
and Anti-Money Laundering Acrs,
are ambiguous.
(U) Companies have chosen to
establish essentially unregulated
virtual banks, loan companies, and
other financial institutions \-Vithin
virtual worlds. These are third party
emerprises that are neither contrac-.
t.ors nor employees of
the companies that own
virtual worlds. '-\'hen ..
70
l> looking worlds, oue can find
such companies accepting money in
inrerest-bearing accounts and offer-
ing loans al. various rates of return
in myriad virtual and real cnr-
rellctes. Some companies,
such as Blizzard,
which owns
World of
\Varcraft,
take the
positiou
rhat.rhe
cur-
rencies
of exchange
f(;,r rhr.ir piatforms have
no real-world value or legitimate ex-
since individ-
uals find it valuable to own these cur-
rencies, such as \Vorld of \Varcraft
Gold, there is a thriving black market
in the trade and conversion of these
currencies. This dimate produces
an unprecedented challenge when
law enforcemenr must investigate
the allegations of unlawful financial
activities either '\ithin a .,.;rmal world
or involving virtual currency.
(U) Ginko Fiuancial operated a vir-
tual bank in Second Life until August
2007. Avatars could deposit and
withdraw Linden Dollars in int('resl-
bearing accounts at several virtual
ATJ'vl locations. About 18,000 ac-
ccnuns are rt'porred ro have been es-
tablished at Ginko Financial, which
offered rates or retm:n in excess of
30 pen:ent for depositors.
1
"
8
Ginko
Financial collapsed in early August
and caused depositors to suffer an
unknown amount of loss.
159
Nu-
merous online forums and bul-
letin boards reported rhis loss as
anecdotally significant. As a direct
result, Linden Lab stopped allowing
unregulated banks to accept money
in interest bearing accounts. This
move may have a negligible effect,
because the global nature of virtual
world activity means that these
t_mregulated financial institutions
now can charter in their pick of
countries.
(U) fiJr law enforcement, money
laundering is probably the largest
anticipated concern, due to the
known conditions in virtual worlds
which make it possible. Some .
such as Linden Lab,
have enacted voluntary internal
measures w ensure that launder-
ing significant smns becomes an
impractical option in comparison
with traditional online mon('y
laundering techniques. One easily
located Web 1.0 traceable
to a residential stmerure in :Miami,
Florida with .servers in Moscow, of-
fers rhe exchange of large sums of
various virtual and game currencies
for varying rates. This entity offers
r.o convert bet,,.reen US Dollars and
Dollar for 89 perceut of the
value it rakes to exchange the Lin- -
dex, which is the legitimate Second
Life currency exchange. It seems
that an individual would only US(' this
conversion system to thwart internal
controls established by Linden Lab
or to obfuscate both the tme nature
of the transaction and rhe source of
the funds.
(U) Tho:>c engaged in money laun-
dering seek ways to easily convert the
proceeds of unla,vii.u activity back
into a usable form after their tnte
nature has been concealed. Mind-
Ark, for example, offers a Projec-t
Enrropia cash card rhat can be nsed
at real-world ATMs worldwide (s('e
Figure 2). The advertisement states
that. "D)Jy simply transferring your
PE.D to the Cash Carclttsing the
Transfer Center in the Entropia
Universe, you can use the Cash Carel
to pay for goods and services in retail
outlets, or to ,.,.;thdraw real cash from
millions of ATM machines around
the world.',.
60
(U) A final concern for law enforce-
ment is the law of unintended conse-
quence. Gambling in virtual casinos
has traditionally been a sig11ificant
economic activity in Second Life. In
July 2007 Lin<kn -Lab banned virtual
casinos and gambling activities.
161
The effect was an immediate and
material drop in user-to-user finan-
cial transactions from which Lin-
den Lab has not yet fully recovered
(Chart 4).
11
'
2
comes from this ac.tiou. Tt1e
first was that users of Second
Life foui1d ways to covertly
continue gambling activities.
For example, numerous bars and
mher cstablishments have begun
holding "dance contests" rhar.
avarars pay to enter. Avatars
dance with each other and win-
ners are selected with
monetary prizes awarded. The
second outcome was that those
that chose to engage in virtual
gambliug activities found other
virtual world platforms whose
Sf;rvers and business operations
were located outside the reaches
of United States criminal en-
fi:.>rct:ment. Since July 2007 sf;veral
new virtual worlds have appeared
specifically to fill tlw void created
when Liudl;'n Lab decided to ban this
activit}: The commonality among
these new is that they do
not. h:we a brick-and-mortar loca-
tion within US jurisdiction and that
t'IOnt' of their serwrs are located OU
US soil. The challenge arises when
the US law <:nforcemeut connnunity
attempts to enforce criminal law it
c,li:>l)laces its aerivitics ro virtual plat-
forms that
are more
dillicnlt tor
the US IC
ro moni-
tor. This
creates a
scenano
in which
several challenges on US law en-
forcl;'ment. The global nature of
virtual worlds means that state and
local US law enforcement, which are
desie,rned and equipped to deal with
crimes located in geographically lim-
ited jurisdictions, must now navigate
a multi-national geopolitical and reg-
ulatory environment in order to ef-
feerively investigarC' complaints from
the real-world citizens they seJVe.
Federal an'cl state criminal codes
leave police and prosecutors with
few tools to deal with the emerging
global na-
ture of vir-
tual crime.
As more
US citizens
choose to
engage in
commerce
within
virtual
worlds,
the United
Statt:s law
enforcement.
and iurdli-
Entropia Universe's Real-World ATM Card
it is likely
that tradi-
tional law
gence com-
nmnities are at odds, with opposing
priorities.
(U) In addition to ecouomic implica-
tions for law enforcement, the global
expansion on virt11al worlds imposes
enforcement agencies will increasing-
ly find themselves ill-equipped to
deal with the inevitable allegations
of theti, fraud, and other criminal
financial activity. a
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(U)Oh, really? .
_(U)Hooray!
(U)Piease ..
implore you!
(U)Thank you, sir.
(U)You were easily beaten.
(U)You have easily beaten
me.
(U)That was


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.(UJ User-created content. The seale of lww much virtual worlds allow users to modify
thc111 fmm garne to game. Ckmain games, such as Second Lite, permir ro create
for use. In d1e of rhc;- spectnun, games There.com do not allow
user c.reated content. to be placed in-wolicl wirhout approval; tel create content, a There.com
IISI!I' has to go through a rather kngrhy process rhe operators or that virnml world. At
rhe far end of this continuum, \Vorld of \:Varcrafr represents a game that nor allow any user created content:
opcraror eompany, Blizzard Euterraiument, creates all comem.
(U) Therefore, virtual worlds range from Second Life, in which users create almosr all content, to There.com, a mix
of user imd company cr<:ared content, all the way 1'0 eutirely c.ompaH}' COll(t'nt, as in cl1e case of ''\'oriel of ''Varcrafr.
The ability ro create contenr appeals ro the hobbyisr builders of the world, while operator creared content gives a user
less choice, bnt also eliminates the confusion and (ofren) paralysis associated with roo many choices. While the cre-
arjon and modification of contellt b); users ar their own pace causes the constant updaring of applications like Second
life, the game landscape of \Vorld of \Varcraft, however, never changes.
(U) of players .. Another statistic that one can gradate amongst virtual worlds is the number of players
who participate. Games ca!l range from only requiring a single player, to millions of players online concmrendy:
.
. . :' .
...
... ..
(U) Age of players. \;irrual \\'l)rlds target players of possible age, from children to adulls, or a mixture. The
mechanisms for enforcing "Children Only" and Only" ntles in games or game areas have met with reasonable
wid1 usually resulting iu cj<-c.tiou li-om the game. lnterestingls often the players ideutif} the "odd
man out" in these environments and report the.m to the game operators. For example, an adult can easily get an
account em the Tec-u section of Secoucl Life prohibited l:o adults (except employee-'i), aud the teens themselves detect
and report: the unusual behaviorof an adult trying to masquerade as a teen.
174
(U) Price. While some virtual worlds don't cost anything, others require subscriptions, or e-ven purchases in addition
to subscription. Almost all of the subscription games have "free to try" limited subscriptions or free accounts that
are somehow restricted. World of \Varcraft has a ten dav free trial; Second Life has unlimited duration accounts that
haw: slightiy limited capabilities. . .
YAaoor.
Game.s
(U) Worlds versus Garnes. Some experts describe virtual world system:; as platforms for creativity. while some
categorize them strictly as "games'". This label usually results from or the nature of the challenges presented to the
user. The nnstructured world; Second .Life, presents no challenges, or quests, for the user ro perform. The plat-
torm nature or the world, user created content, and user generated "quests" support all interest. For example, a user
can create a dark, gothic environment thar. others use in order to play either vampires or humans, conduct vampire
versus human hunting games, and fight battles. (fhis is an example or game created within a non-game). Inwntors
dtsign qmst based likt \Vorld of \Varcraft with qmsting challenges for rhe player to experience.
(U) Persiste11ce. Some worlds and games are "persistent," which means that even in the absence or users, the en-
viroim1en1 exists. Second Lite at)d 'Vorld of \Van..raft servers are always online, even if there no players connected to
them; thus thc:- 30 environment worlds always exist. A console game, such as CounterStrike, is non-persistent since
the game or world exis1s only when the user turns the consolt- ou and plays the game.
.(U) Di-mensiotr.s. One can consider a game two dimensioi1al (2D) if it appears flat; board games such as Scrabble
or 7VIouopoly fall inro this category. Flash games, as Yahoo's Scrabble, also fit into this category, even multiplay-
. er ones. Some games give the illusion of three dimensions (3D), even thought they are in fact 11vo dimensions.
(U) Virum) worlds. ho\vt:wr. do uot imvitablv lllove in the direction of the three climensiona( for sevt:ral reasons.
. . . .
Fir:r;t., as graphic$ approach photo realism, humans begin to be disturbed. Experts call this the "uncanny valley": r.he
c.oncr.pt. rJtat: graphics can bb ''too real" and that humaus begin to lee! revulsion when they encouutr."r somerhing thar
l''okn human, but isn'r.m Even if verisimilitude cloesn'r canse the revulsion reaction, view highly realistic
St!t.tings )H,;s forgiving-people ure much williug to maintain suspension of clisbdief when confronted wit:h
rlmt l(ok r<al. Second, from a game design perspective, many types of gameplay do not lend themselves
to 3D. ln IC.1r more abstract games like puzzles or geometry-based games, a 30 interface can get in the way;
tlw simplcr the graphics, the greater the numb('r of computen that can operate the virtual world software.
To reach the largest possible audience, developers keep graphics to the simplest level possible that can still engage the
target Tlms, the developers of children's worlds generally do not use photorealistic: graphics technol-
ogy-even if they had the choice, this medium would nor reach their target audience. Finally, phororealism consumes
time and money. Producing high quality 3D art, and the technology to s11pport it, raises the costs of a game.
(U) Platform. Virtual world experiences arc nor limited to the game console or the personal computer. cle-
vii:-.es, such as cdl phones, can contain games, and g-amers increasingly we them for two player or multiplayer games.
M.any Asian nsers do not have the economic stat11s to afford a high-end PC:, so they preferentially choose mobile
device::; (i)r g-.:tming. Augmented Reality Game:> comhiue virtual and rt'al objects and experiences together and often
w;e Jll(lbile platforms such as I'DAs and cell phones. Iii
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(U) 2D Internet
. (U) 'fhe trildit.ional "Hilt'' \Vcb p<tgc bnsecllnternet detiveclliOJn document fonnM pnges.
(U) 3D virtual environment
(U) A user inteditc.e nnd suppon infrasrmcttue th11t pn;seuts data in a 3D perspective the user and often
stores illld manipulnte:; cl<tt<t in 3 dimensions
(U) 4G Wireless
(U) 4G (<tlso known l'IS Beyond 3G), l'ln abbreviation for Fourth-Geuern6on, is :t term used to describe rhe next complete C\'O-
lurion in c.omnmnic.Mions. A 4G system is intendt'<l ro pro\-ide n solution where voice, data and streamed mulrime-
clin can be given ro users on an "11nytime, anywhere" basis, nnd nt higher dntl'l rntes than previous generations. The intenta-
tioilal telecommunications :md standardizari)n bodies are wo1king for commercial deployment of 4G networks
roughly in the 2012-2015 time scnle There is no tormnl definition for what 4G is; howevet; there are certain objectives rhM
for .4G. These ol:!jec.tives indncle: thnr 4G will be a fully IP-based intcgr:ned system. 4G will be capl'lble of
providing between 100 l'vfbir/s anrl I Gbit/s.
(U) Active Subscription
(U) An enrollment tq a V\V or game thnt is re!,'ltlarly used by a playe1; ns opposed to one that is acJ:i,r.lted,
then abandoned, but still counted by the opermor as n subscription.
(U) Anamaya
(U) is the Larin word for the Grel"k psykhe (psyche) or soul (spirit) of rhe individual. "Mnyn," in
Indian religions, is the principnl deiry who cn,arcs, peq)etuntes nnd governs dunlity in both rhe spititn:ll
nnd Sj)l'ICP.. Bringing these two together todescrihe n soul, :t common rhread that nms through
multiple t'Xpressious of self in the Virtual \Vorld, produces the term "annmaya". The anamnya represems rhe underlying
pl.'rsonalit); morals, values i1tld belil:'fs rhat. users impose on the avatars they c.reate. The anamnya is the being and presence
of self that.;, projects on his or her virtual activities and in virtual environments.
(U) Arti.ficiallutelligence
(l.i).John McCn11hy, who coined the term in 1956, defines it as" ... the science l'lncl engineering of making intelligent mA-
especially inrelligent compnrer progmm!:."
(U) Realiry Game
(U) An alternnte reality g-ilme is an narrative rhar uses thl:' real world as a platfonu, often involving mul-
tiplo: media nud game I"< tell n story that nmy he aiTected by parrit;ipants' ideas or nctions. The form is L')1)ified by
int.ense plnyc.r involvement with l'l story rhat. takes pll'lc.e in real-rime nnd evolves according to p:trticipants' esponses, :tnd
chamcrers rluu n1-e fictively controlled hy the game's designers, as opposed to being contwlled by artificial intelligf:nc.e ns in n
computer or console video gnme.
(U) Augmented Reality
(l)) A field of contpute.r whicll deals with the combination of real-world and compurer-genernted data. At ptes-
ent., most. AR research is concerned with the use of live video imagery which is digitally processed and "augmented'' by
t.he nclditionof compntc-r-genemted Advanced resenrch includes the use of motion-tracking dat11, fidncinlmnrker
recognition using mnchine vision, nnd the consttuction of controlled environments containing nny nmnbe1 of sensors nncl
nc.tuntors.
(U) Authentication
(U) Tl\l" means by which the authenticity of a user cnn be t'stablished.
(U)Avatar
(li) The of n person in digital fi)t'lll in nn inrerac.tive envimnmenr. Tht: "chnmctet" rhnr nppears on
the screen inn V\V or gnme. An l'IV<'II"fH' often has the nppeamnce of n lmmnn being, either renlistic or comic.
(U) Bulletin Board System (BBS)
(U) A Bulletin System, or UBS, is a computet systr.-m running software thnt nllows users to connect
and login w the syste-m using a terininnl progrmu. Originally BBSes were accessed only over a phone line
wsing a but by the early l990s some BBSes allowed access ,;a a Teh1et or packet radio n,mtc:-ction.
Once a tiller loggc:-d in, they could pet-fonit functions such as downloading or software nnd data,
reading news, and exchant,oing messages with other users. l\1:my BBSC'S also offered on-tine games, in which
ll!'ers c<llllcl compete with each othet; nnd BBSes "ith,multiple phone lines often oiTer<'d IRC-like char
Allowing users to meet. each (other. ln recent vent-s. the term UBS is somerimes incorrectlv used to refer to RllV online
fonmt or
{U) Blog
(U) An online tllt-nnt 10 be read by uset-s of lnrt-ntet.
(U) BotJJets (bot network)
A group of computers that is cont.-olledi;Jy nnotltct computet; often witholll the owner's consent.
(U) Collectible Game
(lJ) Collectible card games (CC:Gs), also trading card games, are played using speciillly designed sets
of c:-trds. \Vhile trading cm-ds h11ve been arcnnd for longe1; CCGs combine the appeal of colle-cting wirh
strategic gameplay in different settings. For e.xmuple, the game Magic: The Gnthe-ting is based on the fan-
msy genre, so many of the cards represent creatures ilnd magical spells from that setting. CCGs are-distin-
guished from other genres of games becRnse the Cl'lrd can dynamically reconfigure the rules dming
(U)Dark Web
(U) The OJ1line Anonymity of the- web thatl'lllows extremists nnd criminnls to use it for content relotted to
porenli:-tlly dnngen.)US or criminnl activity. Such web content is often pltl]>osefully difficult to find.
{U) Digital Distribution
(U) The distt-iburiou of cligital data by me<ms of downloads, as contrasted to the purchase of tnedia on a
CD at a btick l'lnd mortar st01e.
(U) Digital Tribe
(U} Social groups that coalesce nround" common intetesr or acth-it); or a shared ser of knowledge 9r beliefs because of the
.opportunities, support, or prorec.tion that the collec-tive can provide to tl1e individual '
(U) Distributed Computing
(U) A genc-m) term to describe t11e nse of many computers, often geographicl'llly dispersed, openuing in uniwn to solve 11
single or brollrlbascd problem.
(U)e-Gold
{U) A general term nsed to desnibe in-world cm-renq: It is oft'en specifically ref<'ning to the gold of \Vorld
of but can be used to de.scribe the cunency of other environments. a privare company.
(U) Free-to-Play
(U) A service tltllt makes play without chargr.-. Some free-to-play services charge for the pro-
gmm, oth<'t"S chm-ge for game upgrades. This nsnally to the lack of a periodic setvice chl'lrge.
(U)GameGod
(U) A cOJl>oration or person who c.rentes, uminr11ins, and controls the game world.
(ll) God Game
(l1) A t:onstnu:.ti(lll and simulati<nl that' casts the player in the position of contl1)Uing the gmue ou a large scale,
Ill! fill t.'tHity with divine/supernnt.ural powers, as n powerliilleader or with uu specified charActer :md plnces them iu charge
of a g-mne $ettiug couminiug chnmcters LO guard ai1d influeuct:O.
(U} Gold Farmer
(U) A plnye who engages in delibetate nctivities to ncquire ("farm") items of vnlue within n game by exploiting elements of
gmne's meclumics, usually for rhe purpose of selling these items for real.mone);:
(U) GPS
(U) Globnl Positioning System; a widely used aid to navigation worldwide rhar uses a constellation of between 24 and 32
M!-"dium E:mh Orbit s;etellites rhm mmsmit precise microw;eve Is enilbling GPS receivers to determine locntion, speed,
ditection, and rime.
(U) Griefirr.g
(U) A form of emergem game play where player-s engage in the act of harnssing other members of an online conununity in a
manner that is coitsistenr with rJ1e c.ode of the system, bur which may violate the spirit or tenus of se.1vice of the system.
{U) Haptic Device
(lJ) A mr.chrmicnl device dtllt mediates physical conummicnrion brtween the user and the computt'J: Haptic
devices :tllow users to touch, feel and manipulatf:' thrr.e-dimensional objects in vit1unl envimnments and
telc-opemtf:'d systems.
(U)IGE
(u) A company based in rhe country of Vanuatu that deals in virtual currencies and e.xchnnging them for
real c.m1encies.
(U) lnsumt messaging; n that. aUows t\vo usen ro ;'c.har" with each odter using text; very common in
vinunl '''tlrlds, though not limited to them.
(U) Internet Ctife
(U) Often found in developing conmries, it is usually" concentrnrion of computen:; and online cnpnhiliries. that are rented to
users by the hour.
(U) lnteroperubility
(U) The ability of one to work with anothet:
(U) Killer App
(ll) A term used ro describe n powed'nl and useful applicariou, one that is in high demllnd because of irs
fenturf:'s ;end chives adoption of an enabling technology or pliltform.
(U) Linden Dollar
(l.i) The cmTency used in the wmld, Second Life.
(U) Massively Multiplayer
(Li) A type of thar is cnpnble l)f s11pporting hundreds o of phtyers simulraneously.
(U) Massively Single
(U) A mMkcting coined torn n.::w gAlliC thilt indirect., online intcrnc.tion bNwcen plAyers.
(U)Memes
. (Li) Denotes fill}" tlu;mght or espt.>ci::tlly those that. ae eilsily pnssed fium person ro person.
(U} Metaverse
(U) A vinu:il.world, oi.gimtUy desc:Jibecl in Neal Srephenson's science fiction novel Snow Cmsh, where. hmmms, 11s ava-
rnrs, inrcrncr with each orher <mel softwilre agents, in 11 thM uses the met11phor of the renl world.
(U) Mirror- World
(U) A rc!presentnrion of the rc.-.1 wolid in 1\ virrunl f.1shion including accents nnd detnils thnt provide" sheen of reality.
(U) Mobile Devices
(lD size computer device, connected to a wirdess network, having a display screen with tottch input r.n mini.-.-
ture keyboard. The.-se de\ti.ces can be telephony based.
(U)MOO
(Li) MUD Oriented; a text-based online virtual reality system to which multiple users (players) are connected at the
rime. Tht- n:rm :MOO is used in t.wo distinct, but related, senses. One is to reter ro d}l)se programs descended from the
original MOO serve; the other is to refer to any 1\HID that uses oriented techniques to orh'<lnize its darabilse of
.,bjects, p:n1kulady if it does so in a similar fashion to rhe original !VIOO or its detiwllives
(U)MUCK
(U) Mnlri Uset Cn>:flted Kingdom; is" type of user-extendible onJjne text-b11sed role playing gnme, lot role pln)ing
ancl socinl interaction. Similar ti>, a 1\tfUD or l'viOO.
(U)MUD
(l.ry :Multi User Dungeon; A forum fi>r virtual can be conceived of ns a thematically charl:,red chaL-mom with
a li>cus 011 Cetuin so-called i\100s- opemre with objects that the players/users can intemcr with (and
sometimes niter/ crentc).
(.U) Mrtltiverse
(U) A 1\ttttre cldincd as a plethora of virt.ual worlds. Multiple virtn11l geographies eilch of which mily be pmpriemry nnd not
nt-eessmi.ly imewperable.
(U)MUSH
(li) :Multi-User Shnred Hack (or Hallucination); a text-based online social medium to which mtt.l.riple users are connected al
the snme time. SimilAr to a :MUD or MOO.
(U) Netizera
(U) "Net-citizen,'' a.pnrticipaut iu illl internet culture.
(U) PMOG (PMsively Mult.ipbyC'r Online Gnme) is ::tn online g:'lllle which players "pnssively' pmticipate
while browsing weh pnges. enrn dilt:'l points or l'lcquire digiffll "'items" by \isiring unique domains,
which they Cfln spend on various game irems that qm be at.tached to web pilges to t;igger when
ilnother player uexr visits tltCtt pRge.
(U) Pay-to-Upgrade
(li) modl:'l lor ouline g:uui:'S in which can play for frt."e, but lllllst pay for upgntdes such as be-tter weapom o1
(U) PC Bang
(U) PC h;mg (;'bang'' approximately means ''room'" in Korc:'ln) i!: R v:wiO"ttion of Lo\N gaming cenre1; where one can piny
multi player computer g:mu:s with others. PC bangs arc extremely popular nmong young South Koreans. It bc:-camc extreme-
ly pc,pu11ll' when Starcraft came our in 1997. Although computers and hroadbnnd penetmtion per capim were very high,
lllflllY young people went ro PC bangs 10 play LAN-basecl muhiplnyer will1'others.
(U) Persolla
(U) A pcrsonn, in the word's f!\'CI)'day n social n>le 01 a chnn'lctea played by nn The word clcaives from the
L111.in for "mask" or ''cllftrActer'', derived from the Euuscnn word "phersu", wirh the smne memiing. A person's tom I online
induding t:mail, phone, chat, and web surfing.
(U) Phishin.g
(U) It is the caiminally Jimadulem process of Attempting lo sensitive infonnation such as usernames, passwords and
credit card details, by umsquerncling as a trustworthy entity in an electronic C:onnnunicalions purporting
t< be from Pay Pal, eBay, YouTube or online b<mks are c.ommonly used to lure the unsuspecting. Phishing is tn>ically caniecl
om. by e-mail or insrant messaging, nnd ir. often direclS users w enter details nt a web sire. Phishing i;; an ex:nnple of social
engineering techniques used to fool users. AtrC'mpts to cle:tl wirh rhe g.-owing mmbe-r of reported phishing incidents include
legislation, user naining, public awme-ness, And technical Sl:'t:mity llli:'ASUI"eS.
(U) Pltreu.king
(G) A sl:tng te-rm coined to clescaibe activity of a subculture of people who study, c::q:ierimeul with, or
uicatiou systems, like equipment 11nd systems connected to public telephone- ne-tworks. The te-rm "phreak" is a portmanteau
of the word:;; "phone" and "fieflk." Ir may also refer ro the use- of various audio ti-equencics to mAnipulate a phone :;;yste.m.
''Phmak," "phreAket; ., or "phone phreak'' an names used for And by individuals who pArticipAte in phreaking. Additionally,
it is ofi.cn asscn;iarrd with compnte.r hacking. This sometimes called the H/P (with I-I' standing for H11cking and P
smncling fot Ph rea king).
(U) Pseudo-Photograph
(U) A is.an image produced mammlly which is indistinguishable fi'Om a n:al phorogmph produced using
a cnmcra. Although rhe term psenrlo-photogmph can be i'lpplied rcgarclless of what it depicts, in lrm' ir11 mei'lning is espccinl-
ly rde\'am regarding child ponwgrnphy. In rhe UK, the CriminAlJnsrice and Public Orde Act 1994 amcnclecl the Protec-
tion of Children Act 19i8 so as to define rhe concept of An "indecent psC'uclo-phorogmph of A child."
(U) Pu.blic Switched Telephone Network
(U) Iris 1.he uetwork of d1e world's public cin:.uit-s\\itclu:d teleplwue networks, in much the S<tme way that the illlemet is
the nt'I.Work of the- world's public IP-based packt't.-swirdted networks. Q,iginally a network of fixed-line mmlog telephone-
systems, the PSTN is now 11lmos1 entirely dil:,..jlilJ, and now includes mobile as well as fixed telephones.
(U) Q.Q. Coins
(U) The QQ Coin iR a virtunl currency 1JSC'd QQ Online, A popular set of cmline in China and
South Af1icr, which users liSI:' ro "purchase'' QQ relarecl items for 1hei1 ava111r and blog. QQ Coins a1e
f.lbtAiued eirher by purclutse, one coin for one, for using the mobile phone- service, or via prepaid, debit, or
credit cards. Due 10 the populm-ir.y of QQin C:hiuese )''Otmg popuhHiou, QQ Coins are uow accepted by
more and more ouline stores and gaming sites in exchange for "real" merchandise such as smnll gifts, aud
rhe concern ,,f replacing (and rims "inAMing'') real currency in these transActions. TI1ey are also Acce('lted in some real
w<rld cstablishmqnts.
(U) Reality+
(Ui Real-world geographif'S euhmKecl by vimml elemems, dam, nud
(U) Real-Tim.e Strategy
(U) Staaregy game in which action is pbyr.d out continuously without (as opposed tl)
strategy games).
(U) Rhythm Games
(U) based g:uues such as Guimr Hero and Rock Baml.
(U) Real Momry Trade
(U) The of virtunl items ;md CtiiTCilC)' for real world cmTency or vice venm.
(U) Role-Pluying Game
(U) A gnlut in which t.he prertic:ipnnts t.h, ficrinnnl chArnctcn; :mel collahorntivdy cn:nte or follow stories. PAr-
ticipants dttl!nnine nttkns of t.ht;ir dtantcres bn.sed on their c:hamcteti:tatiou, :mel tlle actions succeed or fitill'lccordiug
to fl Ji:wumlized of and guidelines. \Virhin rhe rules, ca11 improvi!>e lieely; rheir choices shnpt tlte diret:-
tion 1end ctHC<Jnu: of rhe game!!.
(U)RSS
(Ui A fflmily of web feed formMs used ro publish lhqnently updilled content such as blog ennies, news hendlines, i'lncl pod-
l'.asts in a formi'll.
(U) Seclimine
(li) A virrual dntg sold in Second Lfe.
(U) Second Life Liberatima Army
(U) An e:'l.verimcnt nm by Rodctickjones to see how tet'l'otist groups might fom1 i'lncl opemte in virnml
\\'orlds. Jones was nble to recmir rei'! I people ro his t:i'luse and successfully demonstrated rhe possibilit-y of
vi1tual world tiO'rrorism.
(U) Simulat-ions
(U) A c)f rules, often embedded in a videognme or computer progtam designed 10 mimic i'lctions aucl opemtions in rhe
I'IO':tl wodd. Gnmes, for exmnple, i'll1! often simull'lcicms of enllife :tctiviry. Nor :til games, howevet; are simulations and not 1'111
simul11tions ;ue gnmes.
(U) Smart Card
(U) A Cflrcl the size of 11 CTedit card) which comains embeddt"d processing nnd secure dnla sromge. They ill'e C)JJicaUy
used fi:> authenticationnnd stored v11lue i'lpplications. Cunemly more rt"sismnt ro forge'}', fraud and hacking than magnetic
snipe cards they are bt"ing rt".placed with RFID
(U) SpJ!Wan
(U) Soft.wnre surreptitiously installed on n computer thl'lf rep01rs bl'lck to the cCJntrolling entity nbont the use of, i'lnd infornul-
ticin on thi'lt computet:
(U) Telepresence
(T.J) A set. of teclmologies which allow a person to fe-d ns if they were present, ro give the appennmce rhar
they present, or ro luwe nn ell'ect, at a locarion other rhnn rheir true locnrimt. Telepresent:e requires
rhm. the !>Cttses of rhe user; or user);, Are provided such ns to give the tf.ding of being in thnt
othc'r locntion. :\clclitioni'lll); the usetN he given the nbility to 11ffect the remote locntion. In rhis case,
the \tser's position, movemenrs, voice, ere. JUi'l}' be sensed, tnmsmittecl and cluplicMed in rhe remote
locnti(jn to bring about chis effect. Thus information may be ttttvelling in both diret:tions between rhe "ttse
and the remote location.
(U) Turn-Based Strategy
(U) A of g<'lllle involving stmtegy where plnyers move one nftet rhe ocher (sucl1 ns ches.-;); cmnpi'lre ro "re<1l
(U) Ubiquitous Computing
(li) A t:ombinntion of widespread input otU]>UC associmed with evel'}'di'l)' objects such rhat rhe
ability ro make use of compmer capabilities is embedded in 1he (rather than resnicred to spe-
t:ific tools such as H PC or cell phone).
(U) Virtual 3D Rt!alm
(U) A synonym lor virrunl world.
(U) Virtual Currt!IICJ1
(U) Cm-rency used in" virttlill world. Can be exc:hRnged for "real" cuiTencies such as DoURrs or
Emos. Exmuples nre QQ Coins :mel World of Warcmft gold.
{U) Virtual Economy
(U) The ccon(lllic mwi:mnwm crcnted wir.hin fl virtuAl world. Often hAs such R$ plAy balance, not \lsnnlly Rt-
uihmcd to rl:'nl world
{U) Virtual EnviroJJmellt
(li) A syw:mym lc)r vil1.tlill w<Jrld.
(U) Virtual Property
(U) Property owned in A virtual world. The property is usu::.Uy corisiden:d inrdlccntRI property l'llthough there is n on-going
concerning the:' ownership of land nnd chnttel in virtual worlds (lor instance should rhe law of eal property or the
lnws of inrcllecttlRI propc:'rty apply?). i
(U)
(U) The crimiual practice of using soci::.l engineering and Voice over IP (\'oiP) to gain access to private personal and fiuau-
cial iufi:nmation liout the public for dte pmvose of fiunncial reward.
(U) A common plmlorm thnr for multiple use.-s to connect fot t'tllertRinment or business, 11$<!'1" ro com-
nmnicnte ot collabomre with one another in real time over a network infmstrucrure. includes bod1 gnines non-game

(l.i) The endy internet, chnmcterized by static web pRge design nnrllimited interRcriviry.
(U) Web2.0
(U) A St'l of technologies and npplications thnt intended ro enable efficient imcrncrion nnwng people,
cotHem, ;md data in support of collectively fostering new bus:iuesses, technology oiTeriug:s, and socinl
mres via the itHemer. The rt-nn is often used 10 de.sc:tibe the use of more dynamic and imemctive interuer technolot:,ric-s.
(U) WiBro
(U) Wireless hrondbAm:l; KoreA's v..-rsion of \.Vil\1ax.
{U) Wiki
(U) A collection of web pages designed co ;myone who accesses it to contribute or modify comenl using a simplified
mnrkup language.
(U) WiMax
(U) A wi t-.:-lcss brc:mrlbn ncl sranda n:l.
(U) World of Warcrafl Gold
(U) l'vl.oncy n!'<'d in the online World of \VArcmli-. \Vhile forbidden by the crenrors of rhc gAme, \.Yodel of \Vnrcrnft
(.lold is freely rmdecl 011 a uumber of unregulated markets amll;uge munbers of Chinese other non-US muiouAls nmke
a )j,,iug "f.,tming .. gold and 5ellillg it to westerners. Tlus pmctice is called realmouey tmde.
116
(U) E.ndnotes
1
2
3
4.
5
6
7
8
9
10
11'
12
tU) lkb SinK>n, ''Sex, ;mtl CBS News,
6 Augus1 R\'Bibtble ti,>m http:/ 1\\'\\'\,:cbsne,,s.c>ml
srcries/:?002/ I::?/ inrerne'l, ac:ces.w.t.i
= Angus1 2008: for 2(l(H figm-es see Mnrrhew Yi, Got
Gmnc/' Snn FI'Bndsco Chronidt', W Deo:cmber 2C:HH, nvnilable
M hnp:/ . .:-gi?f=ichronide/nr-
Iuremer.
(U) Blnkt: Sn<.m; ''Film E.'tecs Blame Halo3 for Poor &lies,"
GnmeProj 6 200i, nvnilnble nt hrrp:/ "''''':gmur.pa"O.com/
14080H, imernr.r, accessed 5 AuS'lSr 200B.
(U) For '' clefinirkn of du. tenn ,..umllA)'D,'' sf!'e ;:-\ Word on Idemiry''
in '"Wh\'l An You?: Vi111ml CuluuY:."
!U) !\lou: infornmrion on this prcxlucl u a\ailabll" at web sire,
help:/ hmorh:comlfNDS_3/intb1_3.html, intemt"t, nccc:,:ced 5 :\ugust
2008.
(U) NPD Hnrdwll re Salt."5 :?0(17, Edge Online, 21.Jnnu:try
2008: r""'lilllblc- ut hrtp:/
in1eme1, ncces5(:d 5 August
200H.
(li) Memf!': "a ... ulmrnl ilf!'lll thnt is by in 1'1
manner aunlogous ro thl' hiol>gical II'IIJL'flnissit)JI of gt"nN'', Random
House, R1111(lom HouS(' UnabJidged Pio:Jional'); (New \'i:>rk: Random
Housl:", Inc., 2006). Set." also Richard Dawkins, Selfish
{USA: Oxfiml Uuivt."rsity 1990;.
(li) QQ Coins are Jl ,imml cm-ency popnlnr iu C:hinl'l nnd Sonrh
Afrit.a.
(li,l lnremnl r.,cton include sdf physic-al rmirs, personnl
irs l'lliOtionnl bond!, illld E.'l:teraml factors indude
nnd socinl nnriounlism, cducariln, economic sJatus,
:mel famco.
(U) Smnli>rcl Uuivcr11i1y. \<inual Human hiiC'raction LAb, m11ilable
li'(>lll lur.p:/ inrc-met. ac:ct"ss<5
2003; Palo Alto ReS<'nrch Centt."J> 2002-200i, n\'<liinblt." from llUp://
""'"'J>nl'l::.com/, inrernt."r, ncceSSC'd 5 August 2008; Nicolns Duch-
enemll:ll Pl-llet Abo Rcsean:h 200.2-2007, n\11ilnblt.'
fmm Imp:// ww,,2 .pare .com/ csl/mt'mben/nkohu/ publicl'llious.
!nml, intemc:t, 5 AuS'tsr 2008.
(UJ players char hn1'8ll.'l C>lher members of Hll onlinr com-
munity iu a mnnner rhl'lt is inconsistC'iu ,,;th he. renm of v.l'\ico:- cf

1U) Thempcuti.: Spncc:s, 201.13-:!fiOG. a\-ailable
' from hrrp:/ .. :..ccm/ cgi/l\IT /nn-conunenrs.cgi?enr'1'-
id=516, internet: accessed 5 Aug11st 2008.
(li'! Serio11s Gnmes Tnxoncmy Shnrtd, Se1ious Gnmes 19
1;:bnmry 200fl, ficm1 hup:/
hcml, iuiC'1111"J. 5 Au!,.'11St 20118: "Seti<lls gnme:" \\ikipedia,
Of!'cr.mber 2(1(1i, fl''llilttblC' from hup://en.wikipeclin.ol'gl"iki/Seri-
"'" .. -e;"'""' internet, nccessed .) 2008.
13
14
15
16
17
18
19
20
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22
{U) RoSH l\likf!'nl andjennifer Sta"l''lll\'1'-Gnlles "11u: Digital
Dollhmtse: Content and Socinl iu the Simi' Onlinf>,"' Games
;md Culture: Ajonnm1 of lnteractiw Media .. 2. no. 4,
2007): :314-334, a\<tilable from Imp:// intemf!'t,
accessed S Angtl$t
(U} Thomns Swee-Hoon CJntnh, and Robert Hollimmn,
"Virtual world experimentltliou: An r.xp1or<llory sruds'' 12 OeCf'm-
ber :?007, :t\'l\ilablP.tiom http://,,..Mv.noctingham.ac.uk/-Jizecou/
RePEc/pdf/2l.pdf, at:ce.ssed 5 Angusr 2008.
(Uj N. YcC",j.N Unih.tl:'>n, M. Urhanck, F. C:hnng, l'lnd D.
''Tlu. Likcnc.-u of Ueing Digital: Thl!' o)f Not ...
\'erbnl Socul Norms in Virtunl The .Joumf\1 of
Cyberl'sychology aucl 10 (2007): 115-121.
(U) ':\nuouncing The FiBt Experimental Henlrh Game Jam at
Uni\'ersiry of Bahimort> October 18-19, 2008," Games for Henllh,
Ocrober 2008, rwaibible at hrtp:/
hunl
1
inlemet, accessed 5 August 2008.
(U) Pr:accmnkt:a; 2006-2007, il\llilRbk- liom hup://"""':pencemnker-
grml:'.coml. iufl'l'llet, 5 Allgll$t 2008.
(UJ .. The Psychology of !\[Msin:ly Multi-User Onlutf!' Rolf!'-Playi11g:
Games: Mom"'ltions, Emorionnl ln\-esmlelll', Relnrionships and
I'I"Obll'llllltic: Lisage," 2006, tt\ailnble fi"Omllllp:/ /\hil.slaufon:lcdu/
pubs/201.1()/yt'e-psycbology-mmoJllg.pdf, inumct,nccl'SSf'd 5 Augu111
2008; ''The Seducrion of :\chiC'\emtnt in MMORPGs," 2004, l'l\-ail-
nble fa"Om
intcmer: nccc!IS("d 5 August 2008.
(ti) 'Thf!' Seduction of AchiC'\emem in MMORPGs.." 200'!, availahle
from hrtp:/
net. acc:es5t'd 5 Angus! 2008.
{U) "'Dice Against J.hl' Nl'lzis/' BBC 1\'t"ws Magazine, 24 Augus1
2007, n\-ail.1blc fl"Om hnp://ncws.bbc.co.uk/2/b.i/uk_ste\\"S/nt.1gn-
zine/6958782.stm, internet, nccf!'ssed 5 .o\ugusr 2008.
(U) "Free Pla);'' Rt-ason, 2005, available f1T.m1 http:/ ""''\',J?.n-
son.com/uc,,'S/show/29103.hnul, accessed 5 Augt.\St 2008.
(U) "f.1huic Cleansing (2002) is a computer b"ffmc
dew:lop<'cl by Resist nne<' Recorcl-., nn undel'!,'l'Olmd auuMc In bel
spr.-c:i.:dizing in Neo>-Nnzi and supremacist bnuds. In the ,game,
the protagonist (the can choose "ther n wnhead or a K.Jans-
num) J'\.1115 dtmugh a ghelto killing black Jx-cple nncl Luinns,
descending inll> n subway ret killJe"" Finally he rcadtf'S the
jf!",ish Control Center", where Atiel Sharon, former Prim!." Minister
or Israel, is directing plA115 fol' world dominntiou. The IIIIlS{
kill Sharon ro "in the g"Rmc .. , From Erlmit-. (video game),
Wikipedin, April :?008, 1\\':Jilable from hrrp:/ /en.\\ikipedia.org/wiki/
Edmic._Clennsing_
0
/o28computer-.":la,une
0
/o29
1
intl'I'Jlet, ac:cf'Ssec:l 1
August 2008; Ele'\att" Hare to NI!'XI L.e\el,'' Wite<l, :?0 Ft-bm-
il11' 2002, m-ailnble rrom
news/2002/02150523. nccessed 5 August 21XJ8.
23
24
25
26
27
28
29
30
31
32
33
34
35
36
(Ul ''Inn wngrs Virtual 18July 200i, ant!lilhlc li"C.nn
lmp://english.n!jnzeem.uer/foc:us/iran/2007 /(17/20083251 {139:i693
(l738.html, iureme.r, accessed 5 Augusr 20013.
(li.l Tht" nnin1dt on design side wns succinctly c.nprured iu Sl"\'l"t'nl of
designer Raph KOllrer's ''uws of Online World Design:'' ''No
ntnrrcr wluu <k, plnyers \\ill dc:.:.c;lc: lht'lmda, sratisrk: mrd
in WJ.ltirJ \ill nnd Jllll anr
on tht." dil."ut. The client j, in the hands (If the N'e\-eor e\'('1'
rhi!!.'' Ko.srer's Websire, 1998-2008, n\';liinble from
hup:/ h'w":mphkoster.com/gamiug/law!l.shtml, iniC'rner .
August :?008.
\\'ngrwr t\n, The :\laL.ing of Scnncll..ilc: thc
N1:\\' \ Vorld, 2008.
tli) GBN Rq.llll'l. ''Ncores faum rhc Unclc:rgrouncl: A snapshm
of trt.'nds, nnd rhrt.'nts fiom the uncle-a-ground
,.c>n)lny". 2005. Clcbal N<twork: a member of the Moni-
t<t' Gmup. This repot1 \\'l'IS an nppeni'lix ro a lm-ger n:potr ccmmis-
sioned by ln-Q-Td: Fntmes Pl'Ojecr Report. March 2006.
:U,i An 'amcle-grouuc:l economy'' is 0111.' wherl." thl" \'nlue is dt.'livcd
from I} illt1-rnl !,>"()(tds nrst:-t'\iCt"s, Qr :!) rhe inunol'lll
of got.ICI." Cr ices
(UI Hl.'lllll)re, Edwnrcl, ''Homr. Jorn Ghes Industry thl" Blues'' iu
16 De-cembl.'r 2007, n\niJabiP. fi'f.lm lurp:/ '"'''w.guardilln.
dcc./1 6/tilm.nsn, iuh.'t'ltt!l, 7 Ocrobet
2008.
{U.: C:nroline :\leek-Prieto, ':Just Agt" Plnying Aronnd? HO\' St"r.ond
L.ili. .-\ids mad Abtrs Child Poruogmphy," in No11h C:.twlinajoumal
of Law nud I Junt 200f:S. http:/ 1\,w\,:ncjoh.org/mnrent/
\iew/139/107/J/6/, illlti'Jlll't, accessed 5 August2008.
iU).JomulumJ. Wnrld of \Vurcrntl Erotic Guild Disband-
mem Suggests VhTtml May Become Vh'tnal Countries," in \ir-
Blind, :!O.Juu 2007. Imp:/ /\irnmllyblind.cmn/2007 /09/20/
\\'01id of WHI'Cr:tft-guild-hnnning-itrtl"t11<11ional-btw/ ,
5 2008.
(ti,l.Rrginn Lynn, 'Vi!1ltal Rnpr is Trnunmti{', bur is It n
in Wired, 4 M:ty 200i. lurp:/
comml.'llf:'ll'y/sexclrin/2007 imernf!'t. ncct'SSc.-d 5
August 2003.
{li) 2008.
i_U) c(lnummirit-s of Plar: nat Social CmiSimcrion of
lclcntity in Onlinr Gnmc. \Voticb," iu SectJnd Perl'On, t-ds.
Noah Wardrip-Fruin nnd Pnr Hanigan. MIT Prt.'Ss, 2006, n'-nilnble
li"cuu lutp://ww\\:lcc.g<llt:ch.tdn/-qxarce:l!PearceJlubs/Pc:anc.-SI'-
Fimal.p.ll: iuu:met, 3 August 200ft
(U) Adam Rtmers. ''Gnmte-1 Stl'rs 80% Virtual world Penrrrntion by
20 II'' (25 Aptil 2(107). at http:/
sroriell/2007/04/25/ ga artter-sec."s-80-\ iriUlll-worid-pcntrratiotJ
by-2011/, inrernet, August 2008.
!U) G111eHonJ< News St'nice, Rcligir.111 News: Video games go
C:hristinn. Gillesbnrg.ct.'lm, 17 July 2008, li-om http://www.
gnlr.-shurg.com/lifest)1P.s/ :t544088:?35/Rdigion-News-Video-
gi"'mes-!,.ro-Cin-isli;m, inttmr.t, accc::..'l!d 5 2008.
37
38
39
40
41
42
43
44
45
46
(Uj lm1pir!"d Ml':diil Eul!"rlllinmenl, 2003, H\'ailnhlc: from http://www.
iurerner, ncr.esst'tl 5 Augrtst 2008.
{u) :\nd} Chalk, ''Hezboll.1h \idP.Ogllme Sparks Prorest in Bah-
t'iu," Escapist l\-lagazinc, 27 August 200i, :wailnblc: fiom Imp://
imc:rul.'t, ilcctssc:t:l5
August 2008.
(Li} Pl11za, AmaclN, ':\u for Rdigion in Vidc:o Games,''
.\.:.,[PED News, 30July 2008, a\'ailablc fromlltrp:/
did:/2054795, Angttst 200tl.
(U) C:Mby Grossman, 'Fnithfid build a Lifll' for religion
online," USA Today, 3 Aptil 2007.
(ti) Z. B. Simpson, Multi-Player Online Games
(MMOGs), and H"'-e Ecmaomir:!t fo1 l'i\c Ptiuciplc
Re11wns," nmil:rble from hup:/ /www.mine<ontroJ.c,.Jm/
zack/uoecon/uotc:on.html: inrt"lner, ncce*'d.Jnly :?008.
0 R01tim power. New playcrs be nlmt-powe,rfhl.
A well functioning ,,;JIIimit accc:ss to powedill
irr.-ms. This balance
0 Support Spt'cinlizarion. An economy which limits \\itar
n player may possess though pricing will forcf' playra'llto
choose ahl"ir itt'ltlS c;mftttl}: For eXHmple, il' tooLo;..of-lntde
are then plA}"P.t'S ro spr.dalize in only
one trnde. This encourngt-s iudi\idual pla}'CI'l' to find a
niche 1111cl gi\'cs pt11lJOSf' and dit-etthm rorheir nctiuns.
0 Enccmrngtl' inrernctions. A wP.ll functioning econr:uny cnn
mori\C'Ile to meet with t'ltCh orher for ti7J(Ir.- and work.
0 i\lori\11tt m-e mauy pos..,ihlf' gClal"' in a
Cl.'llllplex g:tmc,jusr as in t-enrtife. Acquiring wr.nlth ,,;n
genr.-mlly help a playr.-r :rlong rhe rc>lld towards any goal rhey
sdecr. In lact, acquiring wealrh cau sel'\'e as a default goal
when du gnme setting or 1he playr.-r's imagimttirm tt'mpor:tr
ilyf.1ils.
0 Support economic. Some players will :rlways
raking on emnomic rcles such ns m'tisnn,
mt'rchnnt. tr traclf'r. A wdl functioning cc>uomr j,.. t,llcinl
ro supporting these nnnualroles.
(.U) Aknrei-Lttct'nl, avail:,ble from hup:/ /wwwl.akntd-
lttCt'nt.com/ publicntions/ n bsrmcr Jbtml?repo!>itorylrem=rc
m%3AI72-262211635, intemet, :rccr.-s.wd 5 Augusr 2008.
(U) Adam Grec.-nficld, The Thl\ming of
Computing, avli.ilnble nt
imeruc.-t,
ncce-sst'd 5 August 2008.
(l.I) hrtp:/ I citeseerx.ist .psu.c:dn/vir.wdcx/ do\\1tlo.1d;jl!Cll!lionid=5C5 i
F ...\DC:DEOB8i06090J)C:3E0275i9C:Aa?cloi= 10.1.1.61.7449&rcp=
iutr.-met, acr.:e5$tl'cl 5 August
(Uj Disuibuted design and d.isrrihnred prcoduction 1-efe-r to fnnctious
that are pnrceled out ton wide \'ariel) of liJ>ecialisr!> \\'ho at-e sptead
our geographicllll)'
(tij Tor Thonen, "Study: 21)12 gmne l"e\'s to hit 68.3 billion
GmneSpor, 18June 2008, http:/
pc I rpg/wolidol\mrcraft/ inter-
net, nccessed 5 August !!008.
117
118
47
48
49
50
51
52
53
54
55
56
57
58
.59
60
t,U.l lhid.
!U)
huul, intcmc.-t, OtCCI:'!'tc<:d;) :\ug1.1sl 2008.
(U) Jll;rllfii'Y 111;11-ktt, itl'lll-hn:ttcllir'!I.Jl.1rty of digitAl
gn(l(lll (f<"ll' 1\ l:rplc.' iwarar upgntflell ditt('rly w
the Jlht>-er br th(' gnmt' publillhE"r'): "H(Iw Uig is RMT
Mnrkt!'t!'," Virtunl No:twcn'k, rwnilnble 111 http://

inrcmer! ncc:t.'lllled 5 August 2008.
I_Uj hup:/

free%3C:br%20/%:JE, iutemer, accessed 5 Angusr 2008.
il.!) CPP200707(149680i4 Hcug Kl'n.g :\1<1' Online GRmers
mnkiug \'in Online July 4, !?OOi.
tU}Jnliiln Dibbell, "The Lit\- of the Chinese Gold Fm-m..-r,'" I i June
2007.
(li,l Fr"JX Ncwll "Chinese 'Gold .. Play CC1111p11rer fcJI'
'li Seprt"mber 200ti, n\'nilable from Imp:/ /\nndoxnews.
internet, nc-
cc:>std 5 August 2008.
(U) Imp:/ I t"nglish.emt"ws.co.kr/news/dernil.html?id=20070 1220008,
iuremt"t, ;ccessed 5 August 2008.
CU.1 n,e Oc1opus card was oigiually issued by::. 11011-pmfit nrg;iniza-
rion lonncd by a conrortimn of public transit comp:mies tlmt lw
into a for-prCifir quAsi-fimmcinl instiruti(lll. The cnrr.l is now
accepted lor "millliS rrm1Sc1ctious in Hong Kong. nnd ias is expnnd-
iu.g int('I"IJMit>IIIIIJy. [II :?007, ll'lHISIICciml \'(IJume in \\':tS }I)
Milliou US Dc:ollnl's pea Mobile .. urs in Ari:1, KJ'MO, 20t)i.
{U)Jinping- Xu, Chisu.'lll." Vircual?\loney
:Mnrkers Stable fCol' No,\; Virum! Er.<momy Rese:111:h Nen\'Ork: 19
l[nrch 2007, ;n-:.il:tblt' at http:/
ntt:m_nmablts_<'hin('!lt" _,ir: at:Ct'SSt'd 5 Angn!l 2008. ,
tUj 0,} Cm:: R p,,ttet'$.011, i\1. ThiebmL.,., \ia"tunl &-nliry 30
f()l' Onm C:rt-nrion, Viewing :md Editing, in Rc.-f. T9ti l
IU:s('arch nncl Technc))l.gy .MnnHgc.-menl OffKe, Unhcrsicy of Illinois
nt (UitiC), Ot-ctmber 5, 199i.
ill; Bill Hibh:1rd, ''VisAd'', 11\'ail:tble frr.nn hup:/
c:du/-hillh/,il'<d.hrml, ncr.e5sr:d 5 Angtllll 2008 ..
!U) Bill Hibb;ll'd, ''\in51Y', IWililablc AI llllp://''"'''':sset.wiJo:.
tdn/ ....billh/,'i!Ocl.html. Augtt$1 2008.
(U; Olci Dominiou ''Ciwe 50 Release 2.0'', :waimble at
hrrp://mrw-unix.mcs.nnl.gO\/-mickelso/CAVE2.0.hunl;
t'll. 5 Angusr :!I.IIJ8.
61
62
63.
64
65
66
67
68
69
70
71
72
73
iU) FtMlr.r :mdJuyiug Qin, "QQ: Chiwas Nr" Coin of
the Renlm?''. The Wall SrreetJoumnl, 30 M:tn:h 200i, amilnble at
lurp://online.wsj.com/public/artide/SBll7519670ll4653518-
FR_s,DHxRtxkvNmGw"1>0llq_ll2g_20080329.1tlnl?mcxl=n'l!_
incemt'l, acces5ed 5 August 2008 ..
(lij Bctflz Rottenberg. Lili VC..hdonvia111 :mdJiaping Xu, "GO\ermnent
Rumbles, Chint"Se 1\-t:ntctll St:ible li:tJ' NO\"': Virtual
r._ ............... n ............ t."!' ............ qr.'\.r ........... n/\1\i' ....... :t .. t ... t .. ----1'
.a.AoJIIV1&.' .L"'-.,,._".,'-'1 '-'''
1
""1ftt ..,.., 41.&.t.A'-&1 -v'-'' "' "''I"' '
imernet.
5 Angusr 2008.
(1Jj Ac.:Cirdins- to Entea1niument 5c:lftwnre AssociaJion, computP.I'
11nd ,ide.> gnme' wert" n 9.5 biUion US b11siness in the United
Stnws in 2007. The majol'ity t>f mr.on-y (tl.(){ billion US 0(11-
larll) spent <on ,-ideo games.
(U) rkijing Cyber De\-clopnu.ut Cop, "Vi1't11al wCJrlds
Sp."tcr", 11\"llilable nt
banksp.1ce.asp, internet, accessed 5 August 21)1)8 ..
(U) Ad,:mced MMOG Cnnency Resenrch, "The and Fall of
IGE'', 8 NO\?.mber 2007, a\':lilable at http://''"'"'':mmobu."'-com/
artides/i60/r.hc--Jise-ancl-fall-of-ige; acces.'lt'd em .. llllcl Govt"'mment
of rhc Republic of v:"nuarn, 'Ot-wloping C'.apa-
bilities"_. <Wnil:tblc at http:/ /w''"''.\'l\Unamgo"emment.gO\:nl/Itut"'met.
hunl, intes'llet, accessed 5 August 2008.
(li) DFGAmcs, ;milable 11r IJUp:/ /dlgames.com/, inrt"met, accesst'd 5
August 2008.
(U) Lili Vc-hdon,csta, to T.1x In-Game Tmusactions",
16 April 2008. at
IIICI\'cs_ao_t:.x_in....gamc_tt; inrc:met, 5 Augusr ZtXl8.
(l'j f(,l'l'lln'l:nt la\\'8 llf"Cdl1yne A. Hiu:hcoc.k'li w ... frr..sn
iutc::mt:a, ac-
r.essecl 5 August 2008:
(U) Aaron Ricadela, "Cong1-ess Take-s Aim ar
\\'eek, l8.Jmlt" 2007.
(U.l Philip E. Agre and :Marc Roteubt'rg, Technology and Pln111cy:
The 1\'t'W (..andscape {C.Iunbriclgr., MA: The Z\liT rress, 1997); !Ct"'
also Jerry Kang. "Infornmrion in Cyl>t"rspm:e Transactions,''
Stanford L1w Re\oiew 50 ( l998i: 1193, 1195-202.
(ll} Ibid.
!U) ?\IichaC'l B:trbaro and Tom Zeller,Jr., is E.."t>OSed for AOL
Sear"Cher N'o. 441 ii49,'' New \'Ort Timt"S, 9 Ang 2006.
(U) Fi)t' cxaunplc, set ;:\Jmtjc:wdl. "TJ. MNx..'i:Tilefi Bt.-liewd l..ugt>st
Hl'lck E\'er,'' MSNBC, 30 :\Iardr 2007, availahle from hup:/ "''""':
Jnsubc.msn.('om/id/178i 1485/, internet, accessed 5 2008.
(l') Cbina Internet Nen-ork In.lormarion Centel' (.June2003): nmilable
:It hrrp://,\W\:r.nuic .. cn, intc-mer, accesSt'd 5 August 200tJ.
75
76.
77
78
79
80
81
82
83
84
85
86
87
tU1Ihid.
tU) hrrp:/ 2007), imen1er,
5 Allb'1tsr 2008.
(U) :rillS up wmorc thnn I 00 ptn:t:lll; tht:llc Me lhc
Jl''"'idtd by CNNIC:, \\1tich is rhr mcost nutho1i1111iw: Ghintse snun:r.
{U) C:him Internet Ne-twork Information C...-uter 201)7),
nwil:lbll" nr Jmp://''"''""cnnic.cu, iutern..-r, accessed 5 Augusr 2008.
(ti; This adds up to mote than 100 percem; rhe $tnrisdcs
pro"iclcd hy CNNIC, which is rhe mostmuhctitnti\'c Chinese
. (l.l) Jl,jt.J,
!U} One- S<.lUJ'Ct' proje-cts thnt by :2011 the Chine$e nwrkct f(lr
onliue gnmes will be c)wr 10 biUiou RMB (nbour S5. i hilliconj. Sec-
''Jllricbt hre\,ing to enter >nlinc gmw:s marker; in C:ltinHT-
c:-dlNt."ws (21 April 2003), n\ctilable nr http:/
c:com /2{K)8/0l /21/6644-bftidu-brt:'\\ing-plnm-ro-t'nter-on1inc:--gnmes-
mA'ket/, intc.-mct, S August 2008.
(U) Tim Allison,':-\ to Online Games in Asin,"
in Gnmnsurrn (24june. 2008) .htrp:/ "'"'"':gnmnsmrn.com/\il"w/
inre-met, :u:-
c;esSt:cl 5 Augmt 2000.
:U) "Outlim of Natinnall\lcdium-and-Long T1!l'lll Program lor
Sdr.tiCl' itlld Techuokogy De\T;Iopm<-nt 200G-2020." "Stnte lnformn-
rizntiou Ltnding Group's ou Infonunrion
5-nrity .EOons" [Zhc111gb;mf.., No. 27], nnd "Key Points of Natio11c11
lith Five-\i:nr Program lnfomtnri(lll Devdcp-
mcnr Plan." are chnnnelccl through f\\'O liuanciug the
8fi3 ancl9iS Programs.
iU) PRC S&.T: lith Fivc:-\'C11r Prr:pmn Jnlrmuntiou Sec:mity Dl"''l:l-
':>pmenr Trends Smnmit Fomn&.
!U) "E.xt:lulli\'1.':: Chinn's Gmnd Virru:1l Worlds Phm-;\ Fir!il Hnnd
Lx,k .. in Virrual Wcorld News (26 2007).
(U) 'ROK Dailr: Chinn rt'CI\'f!s both Poliwblc, Perilous'' in
.JoongAng llbco (5 Mru 2005). n\etilable at the Source Center
Kl,I.,.2(KI50:i04000173 Scc.,ul.
lli) Pekhi Ch\lng. "The Online- Onme Industry in C:hi11n: A Prt>-
liminm'}' Ohllcl'\'ntiNl>f the f:.c:onomic S!ructut't,''
suh1uitred w rhc: Sixrh Annual C:hinc!le Rt:scnrrh C:onff.'Jeuc.e:
"C:hinn nnd rhe Myths nud Renlities," 13-HJune 2008, TI1e
Oniwrsiry of Hong Kong. Hong Kong.
89
90
91
92
93
94
95
96
97
98
99
100
101
102
(U; ''Chin: Daily Weekly: Chinese C:ompnnic:-s at a Gl:mtc,"
m"nilable at Open Soun-e (!e-ruea CPP'.?0080303968042 China Daily
t.B11sim.!.S Supplementj in English 01)09 03 :M1r 08.
i,U) &osc:-nrch in China, cited in Peichi Chung, op. dt.,
nv11ilablc 111 hup:// online _game I dl!'-
tnil_news_id_87i7.Jmnl, accessed 5 Augusr 2008.
Jornnk Yu, "Tite China Angle: ThC" Ye-ar of tht:' Addit..'lrd Gnming
Rnl/' in Ganul=tUII'R !_II Janllll11' 2008i: a\'llilablc a1 hup://ww'''

5 August 2(108.
il.i) Tim Path to Online in Asia."
(li) ''ROK Daily: China PrO\'l"S both Petilous."
{lJ; World rJf W:tt'Cmi't 11weattu
in Gamns\ltl'n (6 Match 2006), 11\etilnble at http:/"'"""':

net, 5 August 2008.
(l.Jj Siam ''i\.linc!Ark: M:u'kering and bmnd
11wmc:uess lu <lttntct 150 mifiiou users w iu The
l\{MO Gamer ( 11 nt http://'''''"'
mmogamc:-r.com/06/111:?007/
br'nd-nwareness-to-atn'ftC'r-150-million-uM"rs-to-l'tlfmpiA,
intl.'ntt!'l, acressed 5 August 2008.
(U) "The Chinn Putting Tht." World of "'a-cmft Back
ln \\'odd of Warcraft," in Gmnasutro (2!1Augnsr 21107.1, a\'ail-
Able ill http:/ ""'"':gnmni!Urt':'l.com/php-bin/news_index.
php?stcry=15299, internet, accessecl5 Augusr 2008.
(li) Liu Changle is 1\'iclely ro bt crnmccted to
Chinn s secmity services.
{l.ij :-\dclicts Sr.-f:k Shelter Fmm the:- lnremet," in China Daily
(31 August 2006). p. 14.
{Ulluid.
(ti} AriHtUl C:ha, ''ln China, Stcm fcor \oung
Jmemet .-\ddic::a, in Washington Pclst {22 Febnuuy 2007;, AOI.
!U)Ibi.d.
(U) "V'utual Wol'lcls News Inrel'iew: Hui Xu, HiPiHi
Founder nnd CEO" VirrualWorlclNews (I AuguM
2007), il\7tilablc:- cHImp:/ hnm:,irtunJ:\,(orlclsnews.
ct'm/2007/08/,,h'tttnk,'Orldsne.hrml:
'119
120
103
104
105
106
107
108
109
110
111
112
113
114
115
cu, Vii1U:ll Wcwlds Virll.:cl Ntll: \"'ii1Uftl \\"OJ"lds
in Chinn'' VinunJWol'ldNt-ws (10 Ocrobf.'r 200il. nlso Virlnlll
Wt)Jid! Nt-ws ''Q.ukk Nmni:W!I'S: HiPiHi's Ill'(' Imemn
1 ilnnl'' ..July 2008;.
tU) ViJuml Wol'ld!l Nt,,s "lltM ltnrners ,,irh I-liPiHi lor Tt:'('hnology
und lwcr(pr.t:cbilitr'' (4 t:r.lmaAry 201'18}. Sc:t: al11o
\ia'lll:tl \\(aids ''lHM &cks lr. lnacgt"Hit UOueNl'l ,,;,It
Virtunl 'Y.II'Ids Pl:uli:ol'll\S: (28.Jnnu:cry 2008).
(U) Chiun: l'LA of fJ<,iitit:OII Wtll'k Jnl<rmationiz:clic)n:
cxc:c:I'J>' of X in Shidai Budui D:mg\\'ti Gongzuo Shixi:m, [Mr.IClern
:\JjJirary Unit C:cmmirrer. \\i:ll'k nnd Prnctices], Ou Guczheng:
Zeug Zh:mg Dongdong. eds. (Long Mnrc:h Press, 2003),
;l\-:cil11blc iu ns CPP2007tl 11 tl3200 14.
(lii C:hinn: Disc::u!9!!ie;m focnl Poin111 of RMA
C:PP'2008071656300 I of in English ll.i Jnl 03
n,is mmslaricu i5 pt'CJVided by the Department of lleft'nSf"; A11idt
!elec:rt'd from 5-2008 "National <r wrinen b\
Li Pt'ngcong {STC:: 2621/i720/5115), and entillt'd ,;PI't'liminary.
DiSttts!tiou >II tlu: f.ix;cl Poitlls of Our Rt'\ohuion in MiliJal'\

(U) PRC: Clu:ugclu .MR A\ia1ion Di,ision lnforruatiza-
Jion Tr;msfonnntion. CPP'.20080ti(l6478009lkijing Kougjun Bao
in C:hinf.'se (213 Aptil 2008), p. 2. [Repc>t1 by Zlm Q;:mli special
c:ontspondem Hu Xiaoyu: ''Suiviug To Gre:1test Wnr-
\\;inning C11p:chilit.y- An .-\cc:cunl c.r EfforJS Made
by A Chcngdu Miliun-y Rcgicm Air lvn.:r. J)i"isivn lo Push l'C.tt'\"Ard
Trnusti:rm:uicn Tcw:ll'l:l lnfcmlnliznrion"].
.(UJ Gc:ollhy A. J:Owlcr Qin, ''QQ: Nl'''' Cc)in uf
r!}e Realm?'' in WaU Street Jomnal (30 M:m:h 2(1(17).
(U} Sh:mn Rein, "Chinn's 'irrual, e-Coriunence Cunene);" in
ing Alpho (16.J:mnlll'y 200i). )
!U) \\'ttug Xiug Alld W1mg Shnn,;hnn, "Viramtl Mont"y Pc)!;Cs a Real
in Chin;, Daily (:!li Dc.-ct':mhet' 2fJ06). St'l' nlc;o Gc:-oflicy A.
h)\\'let nndjuying Qin ''QQ; Chin., 's Nl!'w CfJin of rhe Renlm?"
(Li) Kent Ewit.tg, ''Chii1a's ViJ1Ual Cln1-cr..:yThl-enJenslhl' Yuan,'' in
Chinn 8\\Sine$$ (5 2006).
(U) lntt'l'llet Woticl Stnts: Asin (Decembe1 200i), from
blip:/ inlcntcl, 5
August 200a.
(U} El.,nomist Unit 21!08), a\'ftilnble at Imp://
inll"t'lll't, a('ceucd 5 August 2008.
Brnnds and Gnming, NO\'t'mber 2(106.
(U) TheAssocilll"t'd Press, ''South Korea's redm>kgy exports rist' 10.5
pet'Ct'lll in 2007'' (6Jmm:uy 2008), ;n"'lil:cblc ar Imp:/ ,,,.w,dlu.com/
at'tide<>l np/2008/0 1 /tXi/bu$iness/AS- Tech-E:!.1)()rts.
php, 5 Aug1.1sr 2008.
116
117
118
119
120
121
122
123
124
125
126
127
128
129
!U) luremca World Asia 2007;, ft\'ailablc fi"tlm
l111p://,,w,v.lmeruel\\"OJ1dstnrs.c:.cm/nsin.hnn, a('('essed :>
August 2008.
(U}Ibid.
'ROK Sta!t'Run TV Speciitl Pt'>gJ1Uu ROK Army
Cnmb:u Training Center'' (I 20IIli), a\'ailahk from the Oprn
Sourc:t" Center KPP200610020490{12.
(U.J Wohn Dong-Hee. "Cyber World Draws Groups.'' iujooug
Ang Ilbc.l (21 2007), t't'primed in 'ROK Daily: C:ybt'r \\'otid
Dt'l'l\\'S Kort>an Groups,'' nmilnble fi01u the Open Sonrct" CoC"mcr
KPP'l00i0321971138.
iU) LeejctOn-Seung, "ROK:s \onhnp: S. Korea opens Vi11unl
!-fashion Clot.hing in \cmhnp, :wailable from thl' Open SoUJ-ce
CMllt"l' KPP'l00708239il234.
(U) Lee Min-n, "Blue House Impt'O\-eslts Engli'llt''JoongAng llhc>
(28 SeptemJxoa 21Xl7), l't'printt'd in "ROK Daily: Pre&identilll
ImprO\'f.'S English A\'Oilable nr the Open S)urce Center
KPP'2007092897 1112.
(U) SeoJi-eun, "Economic& Educ:arir ...u llbo
Mnrch 2008), l't'pl'imed and in "ROK Daily: Econom-
ir..s Educarion Goes Vi11ual ii1 ROK,'' ll\"ailablf' a1 the Optn S(ltJJ'C"
Cenrer KPP200P...03049ill62.
!ll) Kore:1 27 March 2001:t
(ll) Chot:On Ilbo,-10 Oc1ober 2007; sP.e Kort'a limes, !)jmu.
2008.
(U)"Liudeu Lnb Partners with T-Enrertninmem ro Send Second Life
to Virtu11! worlds Nt.'\\'S ( 18 OcwbM 2007), m'llilahlP. m http://
0/linden-lnb-pnrt.hunl, inlt"''mt,
acce!l!ed 5 Angusr 2008.
"Netizf.'nsjoin Online Campnign., to Pmrecr Dokdo," Dong-A
Jlbo (17 July 2003), R\"'lilable 111 http://t"nglish.dongn.c:om/st'\'I:IC't'\ic:f'.
php3?biid=200807J73J898&1Uilp;path_dir:2(M)8(1717: OIC
cessed 5 August :?008.
(U) B11mclon "Korean Ouline Gamt'5, No Longt'r Child's
Plas'' Haukuk Uniwr.;ity of J:Oreign Studies.
(U) Fot n visual'l"presf.'ntatiou of in South Ko1ea, .ser.
Chart prt.'pared by Btuce Str.-rlling \\'oodwck for MMOGCILo\RT.
COM (2008); a\"'lilnble nt http://www.uunogchntt.ccm/C:lmn l.hunl,
inremct: act:C!o."'ed 5 Augulif 2008.
(U) See, ;'Economist C:L,ims Tf.'J't'OtUts in Sec;ot\d Life," Vitulll
wmlds News
1
!:?July 2007, <mtilflble I'll llltp://ww,,:\'irtualwo)rld-
/I.'Conomist-daim.html. imernec, 5
August 2(108; 'Wnshingron.Post rJn Termr [sk) in 'iatual ,,otid,"'
Virtual \\"Odds Ne"s , 6 2008, n\"ailable 11t hup://""'"';
130
131
132
133
illlt:l'111!1.
nccessed 5 Aug\t$t 2008: n t< Robtrr O'Hnrmw,.Jr., ''Spies'
JJnul\"gtT.IUDd Turns Virlunl."' Wnshington Posr, G 2001.1,
"''ililnblc- ;u hup:/
nrlid<:'/2008/02/05/Ak200802051)3144.1uml?snb=AR, imr.nut,
5 Aug1.ur 2008.
(U] S<!t, Clnis ''U$ iu \Ve,>J., BBC
New:., 3 Mnrrh :!008. il\'nilnbl(' ilt Imp:/ /ncows.bhc.co.uk/ I /hi/
cer.lmology/i2743i7.stm, inreruer. nc:cesst<l5 Augusr 2008: "1-\R.PA
CousidcJing Vitrunl D:11a :\n:tlysis,'' \'irttml worltls Ntws
2 2Uil8, nlllllp:/ ''''''''.\"iJ1nalwMiclsuew$.
cona/!200ll/05/iarpn-cclllsidcri.html, inremer. ncC'esst:d 5 Augusr
2008; nnd Ry:an Singe!, "US Spies Wnnr to Find TeJ'I'I.lrists in World
of Wan:mlt,'' 22 2008, m-ailhle at hetp:/ /blog.
wired.com/2 n:uions-spies-\duml, imernet. :ac-
5 August 2003, citing Office- of 1he Diaecror of Nntion:.l Intel-
ligeuc:t, Dntn Mining Rrpc.r, 15 Febnmry 2008, n\'liilable nt hup:/ I
bl<g.\\irc:d.c:ona/2ibstrokcti/files/dJii_cl:ttnnJiniiJg_n:pcn_201.1fi.('DF,
Augu:.r !?008.
(U) For a go(ttl 0\'C"il'w nf htw grl)ups II>W:I(Iays ""l>loit
1.he lmcnet, set Gnbrid \\'rimauu, Tcn'(J' o11the lmc-111t'l: The
Arellc'l, and New Ch:lllenges (Washingtc)n, DC: United Srnres Institute
c>l' Penr.c, 2006); nnd Philip licib, c.'d., and lhC' ln1r-me1 (New
\'C:rk: l'ulgmw, fi>rthcQming); nndJialtut Qnn .:1 11l, tesTe
rsic] on the lnlemer. Tr.chnicnl sophilstication, content
lichne$S, and Wt.-b Studit.-sr)5 (2007),
pp. 71-li4. Forlslamist of thl' l11rt!J'lll'J, sc!,
r(IJ' I!J.:tlllplc, Gm-r R. Utltll, lslrun ill the Dit,rital Age: E-:.Jihnds. Oulille
Fat\,'35: nncl CrbC!'t'lsl:unic: En,iromnenrs !New YCJrk nnd London:
J'luw, 2003): idem. Virtually lslnmie: C:onmmni-
:nd Cylm ltlmnk 1-::mimnnienlll (C'.nrrliiT: Uui\'c:l'sity of Wulc5,
2(1{12): nnd the a't't.eut study 8J"nndon, Virtual Cnliphme:
blnmk ExtJ't'IIUSts nnr.l th<:'i1 Websites (London: Centre for Social
21108). \\'hkh is fi)C:IISC"(I 011 the llillulliCIII inth(' UK.
!li} ''Tefi'OJism JU.senrch Roundup: Not Much in Liff:',''
Virntnl ,,oriels News. 3 2000, R\"ailc'lble nr http:/ "''"'',\'irtunl-
internet,
5 :\ugnj:f 2(1fltl. In t'r!IIJ>OII!If.' lo alleg:tti<tnll a hat lslnmist. renT.uists lul\'f!'
l:>ffu using SL tQ ''rec111ir nnd !'teal-life. L1bs
Philip rh:tr '"[w]e ha\'t' n<.'\'t"'' :my
thnl I he.- is Hny linch gc:>ing on. Citro in Eric Rf:'lliCJ'l, "RcSt"-
dnlf!' disclc)ses FJJI grid1ng probe. to Congress." Sewnd Life l'\ews
C:i.'ntet I April 2008, nr http:/
8r olic-li/2008/0oJ /0 1/
iJiremcr, :u:ccs.<led 5 Angns1 2008.
(l1) See ''Fighting 'the!' NC!>''' World Nctt$: 15Jnunnry 2007:
il\'nilllble :u hup:/IJt\'ll.blc.gs.com/nwn/2007 /0 l/slongc!rjhnn_h.
htanl
1
intf:'t'JJC.t, 5 August 2008: for this CJUOte, ft$ "'eU ns for
other information in the pnmgrnph. Cf. Cheng, "Politi-
c:al group's in-gamt" i,..cJencc- sp;u:ks \it1nftl war:., Ars Tc:chnkn.
I i.Janllnry 2(K17, at hup:/
posJ/20070 I I i-8643.huul: nncl Olher Burkem:m, 'Explcw:ling
and of gunfire ns Le Pen opens HQ iu Vinunl world.''
[l..ondon]. 20Jnnllarr 2007. According to this ccmtmJmicJI.C,
,,hid nc-mally >n 5 Der.cmber 2U06 by the Fl'tnt Nntiou.'ll
CW. rhe yomh ,,;ng c>f cl1e FN: tbt purpose of open-
ing FN CJnicr i11 SI.. \\1s to the of je11u-M:uie
[.t: l'cu iu the pl'r!'llidcntiid r.olecrions ... t:)nsritutc: ft permlllll'lll
eprcsemarion of FN [in SL] ... g:.ther [or mlly] tht.' membea'S
and sympnthiz.-a'S of the FN ... SC'I'\'C!' as a p.'laty shO\,cnse foa both the
Fl'l:'nc:h 1111d ... [nnd] prCimote the Jll"t'SC'JK"C of nnd
org:111izalions 1111d C'Ompanit."S in Virtual worlds.
which hii\'C' up rill now been dominnted rhe ... See
he French in SL First? Frr.nch E.'\:11-eme Righr Political
Pany Opens Office in Set:(IJid tile," Hernld. 9 Dcccm-
i)('J' 2006, :wailable nr 112/
illlOiher_sl_firs.hnnl, ilccessed 5 August 2008. Accol'tliug to
u bl<:;ge nnmcd An)nymous f.m'tpccn, howMcr, the FN Wll$ nor the
134
135
136
137
138
139
finer. French political p:n1y ro r.nter SL, thl" J..iulr.Derm-
"ille the HQ of il cnric:arurecl \'er-sion of an
official of the Pnrti Socinliste, was founded iu SL in mid-NO\ -ember
of 2006.
(U) See, Clnis Gourrilr rmd Abul Tahc1; ''ViJ1ualjihac:l hil$ Sc-coml
Lift \\'Cbsi1e,'' SundRy Times [London], 5 .o.\ugust 2007, R\-ail:tble
nt Imp:/ '''"''':rimc-54lnlint.co.uk/r()l/news/wodd/nliddle_enst/
;u-tidc-:.?199193.e, inte111e1. acctssed 22 Sepceml>c."r 2008; nnd
Natt:tlit' O'Brien, "VirtnHI Tl"nurisu,'' "lle :\nssrnlian. I i July
200ti, fi\"Rilnbltt M hup:/ "''\-':tlu.anstmlinn.ne\,'!l.com.au/
story/0.2519i,22161037-287S7,00.html, inlernet
1
2:?
2008. Cf. nlso Hsindmn Chen, Swn TI1onu . nnd T . .J. Fu,
''C:ybet E:,.tremism iu 2.0: r\n Explomtoy Study of
tionni.Jibndist Gtuups," chapter for IEEE lntermuional Conference-
on lmeUigenc:e nnd Set:urity fotthcQining.
(U) Ciom1ny nnd Taht.-1; "Virtualjihnd hits Stcoud Life
\Vd;,sire.'' One- of those "pro\"CCCRti\'e m1mes" thar wns
listrd ns such w:ts ''1rhabi007" !"Te,>trorist 01)7''),
the moniker of n mnjor opcrati\'C
in Britain. Howe\'C'Jj in a subsequtnt intel'\iew Gunamtn .,
cll,imeclthnt his app.1rcnt suggestion lhal "lrlmbi007'' was
also cpl"t'llring in the. \irtual o tlml somt'l>llt' else
with thar same monikf:'r doing so, wa.s che R"Sulr of
ilnerrur by The Time,. F01 skeprit:ism abom Gunarnmn 's
daims nbour jihnc:lists opemring in SL, \ \:agnerjRlllt'll
Au, "Jihad and Second Life," New \\crld i :\ugusl
2007, n\-ailable n1l111p:/ /ll\\1J.blogs.com1JJ\,1t/200i /O.'J/
sr.cond.Jife-tmd.html, inrenaet, accessed 22 21Xl8.
!U) DHS, Ollie(' of Intdligence and \irtunl wCtrld
Eawironmenrs: Porenrial Exttemist Tools, 2i :May 2008,
pp. 4-5. Compat-e nlso Rita Bush nnci Kennerl1 Killid.
lnfoi'Jn:uion & Beha\ior in Vinunl worlds: .-\11
(:h-et,ie,,; Office of the Direcror of NntionnllmeUiv.nce
report, 29 2(Xl7, \\'hich also emphnsizes (on pp.
4-6) '\irtnnlncti\iai..-s'' such as collabc.lmtiw le11ming and
rmining, socialnelworking. 1111d "'\il1nl'll economics,'' all
of which could be canitd ()IJI by te-rrorists. TI1e nurhor..
rhcn Iilii (p. 3} CO\TJ"t conuuunic;uiou, training/
rchearsRI, money tmnsfcr/l:nmdering. inlormnticn wm1inT,
:md Deninl of (DOSj ns specific acri,-iries
in which tenorim could engage. Note, howC'\-er: rhnr np.'lrt
ticm the ll!le of ,;nual p<"Ople'' (p. 4/, i.e., 11\"Hiars-includ-
iug ''hors''-ancst of the ncti\'itics nre idr.mic:nl
to rhose rhnr rcoraoaists nb'l!'l'ldy e-ngage in tltl the lmemer. In
that s\"nse, Web :?.0 offers them rhe l)l."ICS CJf OJ>pOrtu-
niries a-3 We-b 1.0.
iU) For morr alarmist peclicrions, w.e D:m Verton, Black
The Imisible of Cyher-Tcrro1i$m (New \'Ork:
Hill, 200:lj.
!.liJ Weimann. Tt'J1Uronlhc lnlc.-t'llcl, pp. "communi-
cnth-e uses" Qf rhe lnrentet), 49 (quore).
(U} Ibid, pp. On the subjec1 of networking, Weinlilnn and
others ha'-e \"mphasized how the Internet, gi\'1!11 its reduction .,r
rmnsmimc>n rime and cos1s. ill eS(>c."ci:lly wcll-suit('(J to 1hc "new" loose-,
decf'nrt-:tlized, horizontal, segmenti.'d, :aud fle-xible l)l>C'S of terrotisl
org:miznlion, such ns in which incitP.mem and inspimtion
J"Hther tlum dil't.'C't hicomrrhic;nl conti'CII is punmiCIIInt. St.-c
ibid, pp. 114-17. FCtr n see Lim, blnmi(
Rndicnlism nnd :\mi-Amcrknnism in Indonesia: The Rolr.
of 1he Itnctnct (Wnshinglon, DC: East-Wcosl C:clllcJ: 2005).
121
1
140
141
142
143
144
145
146
147
148
(U) Sc:c, Gordon C:r)I'CI"fl, \\ise len-or (sic) nne
News, G Ocrcrber 2004, n\ail.,ble 111 lmp://news.bbc.co.uk/2/hi/
in_deprh/3i16908.sun. imemer, :22 S.:.premlxr :?008. This is
\\'lr\'lht r.irlc (rf n book ll\' Maznrr. limm'ldern i\len in
IIIC!. M<dCI'II Wol'ld: Rnclir:nllllh;lll, Tem:lri:;m, ;md rhe \\in <in M<l(lr.r-
n.ity (New 'f.wk: C1unb1idgr 2007), smnewhntmislencling
-tim hnn: nnl
b111 nre lltil
Tuclfoed, mnuy of them fir <tuhe imo thP. moden wo1id.
(t)} lbicl, p. ;)(), AIU.I PI) 14-7-il. ''The My1h r)f
Wmchinglt.lll Ntl\'c:mhc!l' 2C:lfl2,
;u l/0211.gret;>n.
hun!, inlt!'aner. nccesst'd 22 Septembet 2008.
(U) Thrent Centre
Tet't"Ori$m: Use of Online C:nming, 25.Jnue 2(11)8. p.li"Key
Poiurs-J :111(1 p:lSsim. CJ: the:- t'\'c.n grwctcs byJnnn
C:C:.lr., 'Osmun bin l..ttclc:n'll 'Sc-.:-mad S11lrlU
1
25 fi:lmtary 2CIOH,
a'-nilable ;u hup:/
a\nrnrs. iurernet. ncceSst'd 5 August 2008.
1U} Sec, 'Meralil'ror: ll1e Use of
PCti by Cottnlettearcrism Blog, I Mm-ch !?007, n\'ailnble ar
l111p: // :Ctmh:rtc:-cTmismhlo.g.ct-g/ZOO i /(13/metAI<'n'Jr _the_J)Oieutial_
iJllt"t'UCI, 5 2008: t'esponses rcJoue$' Stl'
ride can b\" found ar "Titr." Pott!'ttlil'll USt' Crf MMORPCs by Terrol'ists,
Parr II,'' Coumenerrorism Blog, 12 March 2007, fl\'ililnble a{ Imp://

php, ac:ctssed 5 Augusr 2008. Fo1 n <rganized by
rhnr samt' hlcog sirr.o Crll {his s:-cme tho:ine, set: Andrew Cochrane, "'E,ent
Trnnsc1ipr and Links: Ten-orism and the Virtu-
nl world,"' Ccauntr.nenotism Blog, 7 2008, nvaihcblt' at hnp://

php, illlt'l'llt'.f, nccessec15 Angusr 2008. See and Mkhnr-1
Sdu-agl, Bios, 17 Dc-rcmhcr 200i,
"''nihthlc: :u bttp://cmnuenenorismblog.osg/2007/1 !Yjihndinets.php,
inrt'aner, nccessed 5 .-\ugusr 2008: madjont's. "\inu.1l Assnssinmion
as n C:onnrenerorism Tool,., C:ounteneaTOrism Blog, 28 :Mny 2008,
a\nilablt at
i!in:.fioau'ls_n_r:ou.php, imenu::i, 5 2008.
{U.l Hsindttlll Chen, S\'en '[j. Fn, Cyht'r Exm:mism in \\'t"b
2.0: Au E,.-plorarorr Study of (lEEE
IurernMicn:-cl Conference ccnlnrelligence :111d Secmity lnloamnrics,
fm1hcoming, 2(11)8), nr http://ni.ntizonn.eduh-esent'Ch/
lt"tTI>t'/puhlic:arions/ISI20tlr.-S\'1.:iJ-WER2.p<lt: intc:t'llt"t
1
11C:l'l.'liSC:d 5
AuguM 200a.
(ti) Ibid.
!U) Virtu:cl E11Wnin, 160, 140, 32 {PG;--E.\IOniiln cn Se-cond

. !UI Fuiuchun Chcm, 8\'P.Il Thoms, T.J. Fu. Cylxr .E."CtrenU5m in
2.0: An E.'lllf)l'fiiOI')' Stud> or IIIIC1'11Rticut.11Jilucdit C:IT.111p5 (IEEE
lut<'t'nllliouHI C:(tiJfcm:ncc on and Secmitr lnlormmics,
f(rrthCclllling, 2008)
1
11\'ililable I'll
imerner. :ICC'C'SSed 5
:\ugu!Ot 21'108.
"Decoding rlce Wol'ld .:. of Warcmfr,"' Tipping
Point, 28.Jnnt!' 200i, nr http://d,lnbs.tippingpoiut.com/
blog/200i /06/:!8/ decocling-the-"'C'Iid-of-\\71rcraft, imerner, accCl!St.'li
5 August 200ll.
149
150
151
(U) Viru:cnr Poupard, "\\hnmn J>n:rsritlllt"ll Htrsdf on Worlt.l of
Wnn:mfr," Associnted Conrent. 10 .-\pri12007, a\'ililable at Imp://
"'''"':nssodaredconrent
s .. u:_through_criligslist.hnnl, intemt-t, ncc:(.'S,;ed 22 &ptt"lllber 2008.
(lJ) tbid. For n scnnnecl of dtr.o CL nd. sc:-e "RL Pt'Ostirution lor
5,000 gold in WORLD OF WARCRAFT.'' Pltmc:l Jinnn.
15 t\pril 2007, il\'Hilable:- .
prostirmion-r 12:?.brml?s=73d9.J 7albee313fd39:>3955fl80a l7!?&nmp;s
=73d94 I i2&amp;t= 122
1
intl"l1tt!'t, accessed
22 Septcmber 2008.
(U) C:BS S, ''' \tcman Attl.'mprs to Kidnap [.,.. \irtual .. 22
August 2008, :1\'Hilable at
intt'mer, :u:ccurd 5 August 2008.
152 (U) htlp://ww\"!l<.'dimint'.com, :u:r.esSt"d 22 Sc:ptcml:w:r 2008.
153
154
155
(U) hup:/ "'"'"':p>mube.com/warch?,=QjHe\L:?L';oc, imcrnl.'r, :.c-
c:esst'd :22 Seprember 2008.
(U) "The New .-\anstt't-dnm: .\.n lmt't'\iew ,,;,h Uthen't.'l'St' CEO, Brmn
Slmslt:r,'' AppScout, 18 April :?OOi, a\':cihcble nt hllp://""'"':nppscout.
com/2007/114/rhc_m:w_amsreadnm_An_inrenic...,,_l.php, i111emc:r,
nccessed 22 September 201)8.
(UJ Em'llNI Ca\111li, .. l\Jlice to Aic.l in Vittunl 'lltdi Case:,''
Wired, .J. Febnmry 2008. il\-nilnble at lmp://blog.\,il't.'d.com/
:?2 Sep{em-
lx- 21108.
156
(U} E.1t'lli.'Sf C:l\"aUi, :.Jnp.1nese Tt'en Steals l.ngin Info, Virmnl Cnsh
from .MMO Firm,'' Wired, 25 Jnmlnl')' 200f}, A\7lilnble ar
gmnt"S/2008/0 iuternel. :u:cc!sed
22 St1Jleml)('r 2008.
157
158
(U) "Eccuomic Srntisrics,'' Second Lift-, I Augu11t :l008, 11\'ililable al

I August 2008.
(li} Sc:c:rmcl Lift" Upcbtlcd, Ginko has stoppt>d alltmd-
ini: 9 August 2007
1
:1\"ailable fl'l)m 1\ttp://""'"':secondlift'upcbJte.
com/2007/08/ ginkl)-fiuancial-hns-sropped-nll-trndiug/,
nccessc:d ;) Augusr 2008; Daniel Tenlimau, CN'c1 News, Rmtks Banned
in "Second Life,'' B.Jnnunry ZOOS, R\'ililnble from hrrp://news.cnec.
internC't, acces$e<l5 :\ugtJSt
21108.
159 iU) Ibid .
160
161
iU) http://""'"':entt'Opinunn"t'rse.com/enlaich/5676.htnd, internee,
acceSst'd !?!! Seprembt'r 2008.
(U) "W:.gl!'ling in Sc:-cond Life: New Second Life, 25.July 200i,
ar http://blog.S('("oncRili.-.com/200i /07/25/wagctiug-in-
SI."COnd-life-new-policr/, imernet, accessed 22 2008.
162
{U:: "Econ>lllk St!tlistic's: Graph,'' Second Life, ;wailnblc: at http://
inteJ'Jtet, nccc-ssed 22
$('ptc-ml;,e, 2008.
163 . Richard Bnnle, Designing Vi11tml worlds (New Riders Pub., 2tXI3).
164
165
166
167
168
169
170
171
172
173
(Ul Miclmd A Hisl\11'\' ,,f HcJJJC Vidcc C:anu G:nso)lt.:s. In
it.t:mn: :\pt: I, 2005,
artide.II$J)X?p=3ifll41, iuteml!'l, 5 August 2001l.
(tiJ Edwnrd C:asuonrJw, ''Vinunl worlds: A Fim-Hnnd :\r.couur of
1\Jnrk\"t nnd S<cie1y the CybeJ'ilm Frcmtier, .. Ce-ute1 fct' Econcomic
Sll!(lic!t HIJC.I Jfi) Jmuimll: lc:.r Rcs<m-ch 2001).
(U) '\\;,rid of Wna-crnn Rc-nch'.'s 10 MiUic111 Snbscribe1-s,"
2000, avRilablt fmm \11tp:/ 122.
hnnl, ac:css('c.l 5 AuguSI 2008.
(U; ''Vit1tml ,,orld Entmpi11 Issues FiJ'lit E\'t.'J' Vit'tUHI B:mk-
iug fcr 5100
1
000,"' Mlll'ket \\:"'uc-, t1 200i, a\-:U\nble
frCtnt
iuremet, ncr.cm:d 5 Angusr
(U) Se-c- ''"'"':wnrh:unmerouline.com, inrernet, nccesgc:d 5 Aug\&r.t
200H.
:U.: Fur example, see the Amcric:f.'s Anny wcbsiu, 11\-::tilnbl(: from
hup://'n'"':mtJeticasnrm):com/abctt.n/, inrernct, ncCl':l.'lcd 5 August
2008. As the g:une 's popuiMity continued to grow with ead1 of its
dozens vf new \'<'rsion 1-eleases, the- Army h:ts c-xpAncll!'cl its lmmd
tln,)JJf,"h" \'llJic:ty f,f products including t'onsole and (:ell phone g:'llllet,
:\mcti('tt's :\rmy rnerchandi5< such ast-shins, the ReHI Hcroes pro
gram which teUs the stori('S of heroic Soldiers, training npplicarions
fr)r within th(' militAry and go\'emment sccrors, Rnd thr \1rtual
Army Expencnte.
(li.l Gaming and Virmnl wc11ids han n combinntion of globnl nud mo-
bile: Rcc:e$li to:o incli\idtwl tf"XI chnt, gronp dtnl, in:sumr
indi\idu:.l and grr:up \'Oil'C: file t.r11usfcr. nlimw.sand
network buddy p1esence nctificntion, n c>uunon \irtunlmc-t.>ring
pla:e, rmd linkagl!' to <ther mrdin (Hlch ns wtb sites . tdephony net-
wr:n'ks. n1 mc!(liai.
Pinckm,:l. ''ls World of Wnrcmft the New Golf?.''
Fcb. 8. 2006, ll\'llilitble from htrp://\\'\\'\dnp.com/do/
"'''''SStl)t-y?dcl=314i826, inrcmet, nccessf.'d 5 Augnst 2<.108.
(li) Vi11tlill E1wiMnmrut$ lnf( GJ'Ciup, The of Virtual
a11d Soci11l 2008, A\'lliluhl<" lhm
,;nttnletl\'ircmmenrs.info/C'nti.'COJ'\'/!I(I('i;l, inrerner, nccesscd 5
. .
{tJ) Hrynn ,,;,h
Eight Plnystntion 3s," I i October 2007, n\';lilnblc- from http://
""'"': news/2007/1 0/ ps3_supet'Computet:.
intc:rnct, S AugltSt 2fiOR.
174
175
176
177
178
(Uj Philip Rose-dnh:, ''Online Virtual t\pplicatifms :mel
Avntars in n USC'r-G\"net'llred Medium/' before rhe HouSC"
Subconunittee on Telecommunicmions and the
ron, DC, 4 Aptil 2008). Trall:if.'Jipt 11\oilablr frc1111 http://ene,.gycom-
nu.rcl".houSt".go\'ll'llll<'_mtgs/IIO-ri-hrg.ll40108.Virrunl\\"oJid<t.shtml,
in remer; 5 August 2008.
(U} M11scthin:r "On the Uncanny of the
Humanoids-2005 workshop: Vie"" of the liucauny \'nlley {5 Decem-

!U) inducks China, MJ'en, Australia, Ne"' Zenland .
Thailand, Mnlaysi.'l. nucl the of Tniwan, Hong Kong, and

CU) Nid' \t-c, ''World of U.mdiug,'' llu:
Dned.1lus Project: Thr.- of MMORPGs (2005},
n,ailnble fi"Om http://""'"'':nicLyee.com/dat"dalns/nr-
<'hiw.s/001369.php, iuterner, accc-ssed 5 August 2008.
(U) Dmini Williams, :Nick Ycoe, And Scott '"\Vho
plays, hcow much, nnd why? A behll'ioml census of a
wcorld" prepnblicnlion drnft pnper (20081.
179 (U) Ibid.
180
181
182
183
184
185
186
187
(U) :-\ctive ttsets'' fii'C' defined a!i users wlw h;.t\'t' logged in
within the last 60 days. htq,:/ /.&econdlife.com/wharis/
economy_srnu.php, imeruet, nccessed 5 August 2008
(U) Dean Tnknhn$hi, \entul"e' Bent, Undeu lab
CEO !\lnaic Kingdon on Life's latest E,olmion,
18 &,,temher 2008, "'nilAblefiom http://\'enturebe-nl.
com/2008/09/18/
j Augtut :?Q08.
{U) Sueh cnn b,t.- mi:deadiug, lls " frw
cnn account for a disproporriountely large number cf hours.
(UJ Lost in Bannna,-erse, Sc-cond Life Usnge-
ic!o, 7 2008, :wnilnble- from
ce>nJ/2000/03/0i
huerner accessed 5 August 2008.
(U) Hnbbo Rraches JOO million registered
wotidwide, 26 M11y 2008, hup:/
relt!'nses/2008-06-25-1 OO_million_Habbos.html,
nccc-ssed 5 Augtlllt 2008.
(U) Wagnerjamt!'s Au, "World of Warcr.ft No LcJilget \Vorld's Big-
Gigaom, 6 i\1ny 200<3, a\ailable from lmp://gigaom.
... tonger-worlcts-higge-s!-allmo/, it1tn
net, nr.o:sM:cl 5 A11gusr 2008.
(Ul Ht!bbo Reaches I (l{t million t'egistered a\ornrs ''"'ndwidt.-, 26 May
:WOO, Imp:// .. mlakl.'.com/ press/t't'lcast's/2008.06-25-1 00 _mil-
intemet, 5 2008.
{UJ '\irtnnl \YodeLs 2003 Mattei Keynote: Making il and
:MO\ing t.o Subsc1iption'' Vittual Wolicls Ne11-s, 3 Ap1il
2008, nvailable fil)IU lutp:/ /II"W":viliualworldsuews.
r.om/2008/04/vi&1tllll-worlds.html, imenJet, 5
August 2008.
123
124
188
189
190
191
'192
193
194
195
196
197
198
199
(\i,i "\\thkim:, dub pcm.&JUin ;unon!o: tQp 10 2007 fiiSif'.St grt\,ing
cenns..'' 4 2007, a\':lilnble 'i-om htt.p:/
intemet.
;) 20118; Wchkiuz :t\'nilnbllrt:.m hup://
int,:rnc:t, !IC:C:M.<w.d 5
August 20013; N'ehn Tiwnli ..CNet News, I fell in lo)\\" \\ith n cybt>J'
c::H, 10 My 2007, available liom http:/ /ucws.lnr.-t.l'Oili/Wehkinz-

imt-mer, ncc..-s.'lt'd 5 August 2003.
(.U) Vim111l worlds News, Vimull \\'OI'Ids 2008 - ;\lnr.td Kr.pwte: ;\fak-
ing it S11fr. /tnll to Suhscri)Jtion, 3 ;\pil2008: frmn

illlt-rnt't, 5 August 2003.
i,UJ PR Wt-b, Gnia On1int' Name-d to IDfE.com 50 Ekst Websitt-s of
2003 Lisr . 17 Junt' 2008, nvlli1nble fi"Om http://
C:(lll/ pdli lmmll):ld/1 032514/6/ ))l:pdr, inremtr, ll('CI"s:!('d 5 r\ugust
2008; D::m.T:kltlmshi, Gni::. Online Sll million to fimuJC:t
mulripl:.yt-r onlint' gnm..-, I from
hrrp:/
'im..-ml!t, 5
2(108; US Den"l-'raphic.'l, n\nilnblt' IH htrp://
\\"\,,,.qmnucnst g:.inonlint'.com, internet, 5 August
:wua.
tUl A\'llilnblc- fir.n} http:/ h"'"':\in<om.com/otu'brnuds/mc-dinnP.r-
interutt, ncCt.$Sed 5 August
2001t
(U) Cnp:om nnd NI!'Cipers Partner to lnhr.oc:h.tce New l\;fulti-Plntfonn
t\clwntm-c Gmnc, :Jjuuc 2008,
Imp: I I"''"'': .nspx?rid= 1161 t141,
inrel'llc-t, 5 August 2008:
iU) Ncopetli.C:OIII dcmogl':tl,hks, hr.rp://"'"':quanrcflst.o:om/uccpcts.
com/ demogr:tphio:s, inrC"rut't, 5 Augnsr 2008.
(U} Bntct' Sterling Wooc:kock. Annlysis of MMOG Subscriprion
Gmwth'', JON Gam<' C:onfereuo:t (St.nule, W:\, 14 M"y 2008), m'llil-
nblc Rl http:/ h'""''.mrnogt:h: .. rt.com/, interuct, ncct'SSC"d 5 ...\ugttsr
2(10;},
(U} Tot "lltm'S<n, GnnwSpot, Srudy: 20 .I 2 g:une I'C\o ro hit 6H.3 billicn1
USD, 18JuJI(: 2lN)P,, wnilnhle fn)lll hrrp:/ 1\,,,,,:gmncspot.com/pc/
rpg;/wcrlclofwnrrrafr /news.hrml?sid=6192 71 5
August 2008.
{li)Julimi Notes Townrd a of Ludocapiralism, 24
SeprC"mbet-2007, available tiwn

iuscmet, ACCr."l>'ll!d .; August 2008.
(U) Exduding ptimmy llllll'kl."t, iu:m-h:'lsecl first pmry snlcs of digital
1\hplc 11\'iii:U' upgmdes !KId directly t(o lc playl'J' by
Nexrm, rhe publisherj. ''irtttal Economy
Ho:\\' tht' mnrker nvailuble from ltnp:/ "''''':
inr.er-
nt!l, :; 20(18.
iU) Gr.offrey .-\. nnd.Juying Q.in: ''QQ: Chinn's N't!:\,. C)iu of
llc RrHhu?," Thl' Wnll Sm:t>tJ>mnnl, :m ;\hmh 200i, a\-:1ilnhlr: tictll


frcc%:K:hrO/o20/%3E iutermt, ncc:es.'ICd 5 August 20Q8.
201
202
203
204
205
206
207
208
209
.210
211
(ll) Rcbe1'1 O'Harrou;Jt:, Spit's Banlegi'Ound Tums Virtunl, Wnsh-
ington Post. 6 Ft-bl'tlnry 2008, DO I: :1\'nilnble fi"Oill http://
''""':'''llshingtonpo$r.com/wp-dyn/c(lntc-nt/:.rtidc-/'l008/02/05/
AR20(1802050314'4_pf.hrm.l, intcrncr, aC\'t'SScd 5 Augu.o:l 2008;
Rynn Singe!. U.S. Want find T..-&mlists in Wol'ld of
W:ll'l:rnlt, 22 Feobntaay 2008, avnilable from http://blcg.wired.
huctuet, 5
August :!008.
(li) Sliwinski, ::Mosr Bizan?. Thing \ou'JJ Read Todny:
.Mass Effect's ,irtual orgar<rnk rapt', .I 4 Jmmary 2003, !1\'llilablc: :tl
Imp:/
rodlly-mnss-effe<".ts-'"irtunl_,>,-gl, imernt't: :-n:cell!lt'cl5 .o\ugtl$t 2008;
Philip KoUnr, Alltbot Apologizes tot Fox News Mnss Effect Lies, I up
l\'ews, 8 Jmmary 2008, amilahlr. li'(lll http:/ h'"'"''.ll!PCI)Itl/ do/
nt-wsStory?cld=316563S, imerneot, 5 August 21)08.
(U) Fi>r an ouline \'el'$ion of Bentham's plans for the PanQpricou, SP.I.'
llllp:/ /cnrtomc.ol'glpanopticon2.huu, imc:rut-r, ac:cessef15 Augusl
2008.
(U) "Ca111e god" is rhe \'emaculnr for tht' ptivate- cf.lTporarion thm
designs, mnintnins, nnd adniinisters a 'irtual wol'fcl. The- gmne god of
World of \\'an:rnfr is Blizzm'd EnrM"tMinmcnt, Ltd; rho: god >f Sec>ud
Life is l'IC.
(l') Ad11m RC"ull!"t"S, Second Life, Gnt111C'I' Set's 80% Virtual world
Pene-rsmion by 2011, 25 April :.?007, ;milnblc- from hup://.se-coudlift-.
reuters.tom/stOiies/2007/04/25/
tmricon-by-20 11/, accr.-5$ed 5 Angust 2008.
(UJ for t'XI'Implr, Blizznrd relies ''II plnyer repcming
nnd flngging ro de-al ,,;,h unml!rotiS of brt-nc:h of rbe
terms of llt't"\ ict'.
(lil For t'Xllmple. considn tht' Googlr.-labt'ling c-xpt-l'imenr, which
usesluunnus to flag and picnu?.S of photographs. See
Imagl' Labele; Ht iuteme,
nccessed 5 August 2008.
(U) ,: United StAres, 389 U.S. 34 7 (.1 91)7).
{U) C::lll1't'llt scc;.pe of ann lysis i:c whether
witeraps of hybaid US and con\'t'n.'llions at't' ct.msrirutional
and permitted by FISA ns by rbl!' Pnrrior Act, and gnin
in 2008. Alrh>ugh this is a scrimt!l quesrion, it i11 ... ,, c.uu. uuiqne tCJ
Virrual woaids.
(U) United Stares" Millet; 425 U.S. 435 (1976).
{Uj Susan Freiwald, "Online Smveillnncr.-: Rc-mi!'Tnbt'ting the US$01\S
of rhe \ Act,'' 56 Ala. L:lw R.t:lit-w 9 (2004). many
noted, rhe expectnlion of pai\ncy tt'st is c:ircular.'').
(U) K.;ltZ, 31.19 U.S. at 351 ( 1967:-(''what [n person] seeks to as
printlf', in ;m a t-ea iiCCe!$ihlt' to the public, 111ny bt> cotb!titllli.:.n-
nlly
213
214
215
216
217
218
219
220
221
222
223
224
225
226
(lii Kyllc. \: l.iuimd Stntc:s, 5:ts U.S. 2i (2001; (h,ldiug cf tlwnmll
imngiug a ,;r,,lnrir.lll of the Amenclmem).
(l..i) Indeed, enrly Supreme C:cmrr (pin.ioru thnr becnul!e rech-
nf the: h(llllt' rhnt tht inll:nnntion is
nn pl'i\'AIC:. SL"(: Ohustettd ,., lJnittd 2Ti U.S.

(1928)
dun there wng no of in tdeplwne cnlls}.
Olntstend's focus <n the merht..c:l of 5111'\'eill:mce mrhea than rhe n:cnue
c)f the inli.lt'tmllitJII WfiS (I\'Cl11JI(d by Kmz.
(U) DMi'.'l Terdimnn, ''Lnying Po\\11 rht.- Virntnl L'""'" Wired
Mngnziue. 13 Nr.t\ember 2(103, ;wnil11ble 111
II /61181i, imer1ret, 5
2001t
:.U) \'ahvl ': 1 ... 1 l.iguc Co>ntrc L:1 R:ccisme et L'AntiSemitismc, 169 E
Supp. 2d 1181 :N.D. Cnl. 2001).
ili) luiCI'IICr Slals, 0l"Cc!Uibtr 2007. W\\'\\:inlt>rtlCIWOrldstats.
a((('SS('d 5 August 2008.
(lJ) (;;mmsmtn.Juuc 21Xt7, ,,ww.gmnAl'lltrn.t:om, imcmct, ;lccc$llr.d 5
August
!U} Virur.,l ,,orkls N(',,s, Wh(o's Nt>w to Virtual worlds, 29 Fc-bnuuy
200(-1, ww,,:,irtunh,t'>Jiclsne,,'S.com, imemt<t, 5 August 2008.
(U) Win:d.com, lkautilid Animc kids gf:t rheirO\\lt MMO, H April
200.<s, hllp:/ /hl>g.wircd.com/.gnm'c:-:r/2li08/04/l4/inclcx.huul, imcr-
nt.ol, ncc:-c-s.;ed 5 2001J.
!U) Virtn411 wc.rldll Onliru. ancl
Product Milnogc:omc:ont Hendslor IS May 2008.
whc-cl.c<,m/gntnl."s/2008/0V 14/indcox.hrml, imC'ruet, 5
:\ugu$1 200f.l.
{U\ """'.fr.rrinct.c:>m, {April20<14'). inro:mer, acct'.ssed 5 Augtl$! 2008.
tU) {july 2008.1: intC!'I'Ilet, ncct'Slled 5
2008.
Vil'lnnl ,,odds News, Thni Go\'emrno:nt mrd Archirecrs Co-
I..nundt Renlnncl Varmnl Building in Enrropia; uads ro MO\ie Ikal,
9 F.:lmmry 21:K'I8, \1'\\'\,:\'irru:dworldsnews.com, illl<'l'llet, l'IC':es.sec.l5
:\ugu::l 20011.
IU} ''''"v.gmnnsurra.com, !JunC' 2007j, i.nt('rner, 5 August
:!(IOH.
227
228
229
230
231
232
233
234
235
(U) A cf &.><:c111d Life left-wing grcllJ>$ has hc:c:n compiled hy
Dalininn Bing, nnd ir was then suggntecl by rbe posrer thl'lt members
of rhe Lng4Pt.once mny ,,anr ro "coordinntl!' \\ilia or reach om
rc'' ': Nakamichi, Conml>nweahh Islands in Second Lift.- wd>-
site, At:ti\'isr Groups nud 01ganizaricns in 29 NO\'t!'lllbtr
200i, :wniL"Iblc:o ti"Om Imp:/
lngci-peacdfomm/ ropic/shO\,?id= I:! I 030,
imerm:t, 2008.
(U} Note thnr SHARP Hkins are \iolenrly oppcosed to 1\t'(>-lasci8, but
nor necessarily left-\\iug, skinhe-Ads. The smnc:- is or m>sr so-r.alltd
TmclitkJual Skins. Skinhea:h whc geuuinely leftist, ideologicnlly
spc:-:tking. m-e geneJ'lllly kn0\\11 as Rtc:lskins. Fbr introdt\C:-
riCins ro of, and di\isions wirhiu, rhe skinhead snbculturt>,
Timorhy S. 8J'OW11. "Snbculnrres, Pop Music nnd Politics:
nnd 'Nnzi Rock' in England nnd Germans" J)urnal of So-
ci:cl History M. Rnlc, "Skinltcad
Fnsdsm/' in Wolid Fascism: A Hisrorical eel.
Blnmia-es, (Sanrn Bnt'bnn1, CA: ABC-Clio, :?006).
(U) w a quick llt."tn'Ch of ruw.r c::rcntc:d groups un
rhe Second Lili- website!, W\\'\\\SCl'o)lldliJ(o.com.
(U) Ir may be possible to dmif) this furdu.r if one is
willing ro spend more time ''iu-wol'ld" monitCiring o-ganiza-
ricns and tluir acri\ities in SL.
(li) i\Im-k Lnncller andJchn Markoff, "Digital Fena-s
Emerge: After Dnrn in Esroni11,'' Ntw \(ork 'limes,
29 Mny 200i, nvnilnble from http:/
com/2007/05/29/technolclgy/29estonin.hnnl, intcornc-t,
August 200R
(U) BBC News, ''Sw,.dt-n pL'lns Life 29
January !?007. tl\'llilable from hup://ne\\-s,bbc.co.uk/2/
hi/l':lii'OJ'lr.l6310915.stm, internet, accessed 5 Anb"'ISI 2008;
Dunc;:m Riley, "You're Not In The USSR Any Mot-e: Esto-
nia ,o\n Embassy In Second in Tech Crunch,
5 Dec:embel' 2007, li'Cnn Imp:/
coot/2007 I 12/05/youre-not-in-rhe-u . .._.:,-mly-m>t-e-t':!ltmia-
inremt?'r. accessed 5
August 2008; ""The i\Ialdi,es Vinunl
in Second Lilt- Insider, 23 Mny 2007, a\'nilablc.-
from lmp://''"''':sec:or1lUileinside-:com/200i .
rbe-mnlclh-es-,irtttnl-embn$5)'/, interuet, accessffl5 Augttst
2008.
(U) Based 01.1 inteanariconnl govt>J'JUllent IT c:nse
submissions found in Tht' 2007 nnd 2006 edition of The
(;(l\'crnmcnt srltion, n,e Compntt'lwcticl Honors
Prr.ogmm, from Imp:/ "'"""'l:whonors.c>rg; intemct,
5 Angusr 2008.
(Uj Mark Lamllcr nndJohn MarkoO: ''Oigi1al Fcan Emerge t\licr
D111a in in Nl'w Yo1-k Times, 29 M11y 2007, :1\ailable
li'Om hnp:/
hun!, iutemel, ac:c:essed 5 August 20H8.
(U) Mcoore, "French Politics iu 3-D on Fantasy Web Site,
Presidential Hopefuls Build PJ"eSenct' for Avntars on Second Life,''
rhc Washingrou Post, 30 Man:h 200i, Section.-\ p.'\ge :i, l\\'3il-
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