Beijing Court Rules That Virtual Theft Is Real Theft

by Paul Denlinger

Posted Dec. 20, 2003

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In a first, Beijing's Chaoyang District People's Court in China has ruled that theft of virtual assets in an online gaming world are just as real as theft of real assets in the real world.

In the case, the plaintiff Li Hongchen, 24, said that he had spent two years and 10,000 yuan (US$1,210) buying pay-as-you-go cards to play, amassing weapons, powers and victories in the online computer game Hongyue or Red Moon, before his weapons were stolen. He said that his assets were stolen by another player who hacked into his account.

In China's online gaming industry, players play by buying pay-as-you-cards, allowing the player to play by the hour or minute. Credit cards are not yet widely available for the players, who are generally younger, and the pay-as-you-go cards circumvent the online payments security issue.

Massively multi-player online role-playing games (MMORPG) are very popular with this young, mainly male audience, and many spend most of their time and income playing. The objective of most of the games is to defeat your enemies, accrue weapons and powers, and rise to a higher level. Those at the highest level are constantly fighting off new challengers who want to "kill" them, and become the king of the pack. In order to create market their games, the game hosting companies stage highly publicized showdowns, with valuable prizes going to the winner.

Individual players have their own accounts, where they keep their weapons, powers and identity, which they assume when they go online. Li Hongchen accused the defendant, Beijing Arctic Ice Technology Development Co., developer and host of Red Moon, of not keeping his assets secure, and allowing another player to steal his assets. The defendant argued that the assets were virtual, and were only piles of data.

By siding with the plaintiff, the Beijing court agreed with Chen that he had spent real time, wisdom, money and belongings, and that the company should make restitution.

Security is a major issue for all software companies, and hackers are especially prevalent in the Chinese online gaming world. Because online gaming has taken off so quickly in China, none of the distributors have had time to make their games secure, and hackers frequently break into the accounts of players to steal their assets.

The court decision places the onus on the game makers and hosts to make their games secure, which any way one looks at it, will be a massive undertaking.

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