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 lnformat~n 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 ques~ons, please call the Requester Service Center at (703) 874-8500. l

Enclosure

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The content of this report. Including the opinions, concluslon1. -lysl1. and legallnt~ 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.

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••rPt·tnr 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, pro­duced 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· ttorm..!J~

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(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

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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 domi­nate 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

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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 par­ticularly 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.

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(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 productiv­ity 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 n~xt 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, govern­ments 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.

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(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 practic­es. 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 and­depending 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 govern­ment 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 adapta­tion, th~ utility of"the South Korean model becomes a relevant future consideration. The South Korean model uses government-supported infrastructure to enable a free market in­dustry 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.

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(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 inter­est, not the technologies themselves. Understanding the capabilities and exploring the possibilities that technology provides is important to assess­ing 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, ~hich 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 abil­ity. 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

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(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 (voi~, video, text) options indepen­dent of the game being played.

(U) As infrastructures grow, multiple worlds may begin to share a com­mon architecture. An example of online infrastructure is Valve Soft­ware's Steam architecture, while in the console industry Microsoft and its Xbox Live service lead infrastruc­ture development. These infra-

structures are the building blocks of a Multiverse: a plurality of virtual worlds linked by a common infra­structure. 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 ex­ample, 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 be­cause they provide a common frame­work 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 func­tion. Communication per­meates the virtual landscape to enable social interaction. VIrtual worlds permit com­munication through mul­tiple 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 adver­tisements can all be customized by marketing companies, or users, alloWing them to broadcast music or movies, or even to d.ispe~e 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 com­munication 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

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from the constant and persistent threat of malicious _ - -external parties but, in an environment whe~ .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 digi~ _3.§Sistafif8, security is even more difficult to maintain: ---(U) Many organizations are now moving their applica­tions 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 ~r..v.11v (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 key­board 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 con­trols 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 plat­forms 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 2008.~

a tactile response such as an explo­sion (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 simu­late 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 predomi­nantly 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 sig­nificantly 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 tech­nology 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, cam­eras, music players, games COJlSOtes,

agreed standards will ensure that future computers like these will lose none of the utility that modern com­puting 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 cur­rent internet.

-(U) The Death.of the Disk. Digi­tal 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 audi­ence from their. home. Content cre­ators 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 m~ment matures, the depth and breadth of digitally distributed con­tent will increase exponentially. Tra­ditional 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 what­ever content they choose and are able to reach an audience that would otherwise be inaccessible. Viral vid­eos created on sites such as You Tube are examples of this breakdown of barriers. Extremist propaganda posted online is another eXample of this worldwide phenomenon.~

(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 unders~ding its poten­tial 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 cre­ates a virtual world that is so useful and compelling that it aggregates a majority of the internet's users. Elements of this include: •

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[> 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 cus­tomers and users. Examples include an Amazon store or.a Facebook "room." Eventually, due to busi­ness/ customer needs, new standards of interconnection are agreed upon by the major participants·to enable virtual spaces to interconnect. This growth path will be characterized by:

0 A bewildering variety of technolo­gies and vendors.

0 Minimal standards of intercon­nection.

0 Decentralized control, as it is cur­rently with web sites.

(U) Reality+. The Meta- or Multi­verse 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 (struc­tures,·objects, and people). This computational layer will create and consume data and allow rich interac­tions between people in close prox­imity as well as from remote loca­tions. 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 spe­cific data. layers through systems such as Google earth.

0 Full virtual overlays on existing reality (mixed reality).

(U) he Emergence of Interna­tional Standards. Standards bodies are developing inter-game, inter-world standards for communi­cation, 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 propri­etary 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 com­munications, 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 devel­oped, nonetheless, and some vendors will adopt them~'it is also likely that some will not. e1

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(U) i.G .LAs ·s E s S E·E lNT·O TH·E ·-FUTURE .

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(U) One plausible future technologiCal developr_nent.is iGlass~s, wearable technology versions of· classic eye

·glasses. The iGlasses would feature a. fully integrated cpmputer, PDA,. cell·phone, ID tag, HMD (Head . Mou:q.tedDisplay), ~d G~. Built-in inter~et access woiild come•standard'with.all niodcls. .

. ·• (U) whe:q. int~grated With sub-~eter 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 re;:~.l world. Mi-.:: Glasses personalized software. woUld then allow ~e~­~. ers•to a~gment reality'with· their 0~· person,al touches . ...

' (0) This techn~logy woul<:f kn~w 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 GPS·and a~celerometers .. Graphics would oveday the real-world :setting if the we~er so desired.

. ~or·example, a~vertiserS would be able to 9verlay ads onto public 'Oillboards that wearers pf iGlasses would .. View .. Ad .camp3.igns woUld thereby· became:; personal­ized to ~dividt.ial .wearers of iGlasses. · . ·

(U) Of course; this technology. could also be abused.: . · Right-wing extrC<nlists, for ~tance neO.:Nazis, could_ i:>verlay ~ial 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 ~th the blencfuig of ·the '. ' ·, .. .

virtu and'real wonds, with Reality+ oveda:y,s:. i .

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(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 Worlds6

medium, any person can invest their time and skills into creating interesting content, attracting an audi­ence, and forging virtual relationships. Take, for

example, Matt Drudge, who in 1998 broke the Monica Lewinsky scan­dal 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 signifi­cant 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, co~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 oppor­tunities 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 ban­ning QQ Coins and forcing Blizzard to change certain aspects of its games to conform to Chinese values, is expl"l!ssly protecting its national­ist 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.

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(U) .A Word on Identity

(U) Virtual worlds provide a 3D platform for personal expression, enter­tainment, creative expression, and business activities. All of these activi-

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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

~believes, 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 sense­of-self issues with them. However, the online world, with its anonymous element and its enabling technolo­gies, 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 implica­tions 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 re­ally 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 soci­ety. 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 in­world social and economic processes. On the other hand, virtual identity is also influenced by real world envi­ronments. 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

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(U)·The Key Component: S~ciallnteraction (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 im­moral behaviors that they would not otherwise display in the real-world.

(U) Online to Offline B~liavior. Preliminary empirical research has indicated that virtual world interac­tions are subject to many of the same physical "rules" of human real~world 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-to­online parallels may also translate within cultures.

(U) Virtual behaviors and experi­ences 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 car­ries over into virtual world interac­tions. 9 Critically, not only do these visual mechanisms play out in virtual worlds, but they can translate their virtual world effects in~ real world scenarios.

(U) The implication of cross-over is that users are transferring their real-world socio-cultural motiva­tions 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 Eff~cts. At the intuitive level, it seems clear that computer-mediated games-from single-player to massive multi­player-: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 real­life trauma. 11

(U) More generally, the field of "seri­ous 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 ob­jectives, such as establishing rapport or empathy between otherwise alien­ated or at least non-communicative groups. A good eXample is Peace­maker, 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 suc­cessful 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 mas­sively multiplayer online role-playing game (MMORPG) venues, since they have a considerably greater po­tential for influencing via traditional social mechanisms. 18 Achievement in MMORPGs is seductive because ~e goals and journey are well-de­fined and the rewards are social and persistent. In a MMORPG, a user embodies his or her achievements in

't~p~LJ~~~~~:_--------~ a character that is part of a commu-nity that recognizes the user's p_9wer--(b)( 1). and competence. Pl~y~'-efforts and (b)(3) achievem~~~.in MMORPGs take on j~.-realism that other games do not p~vide. 19

(U) In general, the insertion of politi­cal back stories in games--including

:"·1.----------------__j pre-computer games--is not new.20 .-,~.J,;.;•-;.,.,;~

(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 influ­ence perspective .is the prospect of political or ideological objectives hidden in game rule sets or play me­chanics, 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 su­premacist, 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 Truth­ful Pledge (Hizballah, 2007) 0 Special Operation 85: Hostage Rescue (Iran, 2007)23

(U) None of the above is a MMOR­PG or social world; they are all single- or limited multi-player games. As ideologically-driven parties ex­periment 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 present­ing a values-neutral backdrop within which a nefarious group might conduct propaganda and recruit­ment 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 possess­ing the resources to experiment with

inclined·to be the passive recipients of a set of divine game laws limit­ing their options and forcing them

the development of MMORPGs as in­fluence mechanisms, may likewise simply find it more efficient to use already­existing games. The Chinese experience is perhaps the most

(U} Real relationships devel­op 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 mecha­nisms, this is not necessarily the case. The extent to which any putative ideological (or other manipulative agenda) game designers and opera­tors may have will be counterbal­anced by the players themselves.

(U) The idea behind this thinking is, broadly, that this· increasingly sophis­ticated and astute game-playing au­dience will detect and either ignore or subvert such influence attempts. The ~bility 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 garn­ers, who quickly probe, define, and then breach intended design bound­aries. 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 in­fluence mechanisms. Their ultimate influence may be limited to two fun­damental overt areas that have been discussed above: individual empow­erment and a reduction of negative stereotyping.

(U) Other more sophisticated and potentially more manipulative mech­anisms 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 commu­nities. Real relationships develop between the real people behind the ava~s, 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 relation­ships 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 adopt­ers of new tech­nologies, to improve them, and thereby to influence broader accep­tances of the technology.28

Improvements in technology will in turn make the experience even more realistic. The pornog­raphy 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 en­tertainment 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 wide­spread 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 cyber­sexual 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 pornogra­phy can be found in the section on Law Enforcement. In any case, vir­tual world communities have begun policing such behavior themselves, regardless of national laws. 31

(U) In Second Life, one enterpris­ing 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 devel­op such strong feelings for their ~irtuallover 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 pornog­raphy industry have been noted that have direct applicability to the virtual world, such as the rise in user-gen­erated 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?" ques­tion.

(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 tha~ 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 encour­age 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, sup­port, or protection that the tribe provides to the individual.

(U) Some ·cohesive groups have already been moving between vir­tual 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

·.·_·co~·· :::::>" . . . ~. ·.

earlier virtual communities and arti­facts in their new worlds. 34

(U) Griefers. Most tribes· come together for the enter­tainment and enjoyment of playing the game; they strive to gain their reputa­tions and be­come legends by excelling at the competition· L-...!....-. r::~a..;...=::.:: offered within the experience. Others, however, are more interested in "griefing," or creating trouble. Such groups strive

'. .. . . .... · :··~. •:•\."~.-:·.:·.··~·;._·~-·:_:-; _ .. ~~J~::-:·.7'·:'~ :·-:-~./~~,..,..'

(U) Reside~ts ofSe~bnd Life can customize'their.avatais to be·ass~~tedwithvarious ···~. ~rtual groups, a"Uo.Wing members~oftho~ groups tti remain organizec(a!'ld providing.·an ~asily recognizable symbol for identifying like-mind.e~HndiViduals ~~tli~ the wo~d, Jt!is facet of SeCond l:.lfe.!)ecomes rele\rant·t9 us n~t19i:t~rseeiJ~cor.~~i~e~tions ll'!ben 9n:e\ · , , , . r..,., · . • \ · , "'+, , · • • . 4 :4..' :<.. i . -.. •4 .· 'f#:.? • .. · • . • • .....

f1i .. ~s·into i!CGou~~\the··existen~~;o.f~~~r.i!)l!S·groyP.~~il~l,llt!,y!i1':!.~1;~j<l!!~~*-IT!~i"~;~f~r~ ~Lich groups are;Jt~~ly to take.:adv~vt~ge Ofthe:Qp~i:tti~it}ito ass9c;i~!e'themsel~s:~~~. their. group. whet!lefin obvious qr·subtle ways: · .· ' : · ·· · .- •" · .. · · '· ·_, . ·. ·. . .. . . . ·····.

(!.:J) The mpst o~ious methoc:f r'esiden~s could use to'~ssociate th~~lves with a pa.rti~­·l,i!~~(ganization :~~ld .. ~ tojo;r;~ t~~Jormal S~o.,tpft!~g"?ui> if on!:~i~s CC?r ~r!!ate Ci.o~. lfit·does not). -R~~~~ents can :be;'"~ri)bers. 6f:4P. ~o:~~.-9~cwps, an~ ;~~tJi~.se -~~-~~~.P.!~Yit on~ group name_ alongside theira~atar'sname.' Ot~r.~sldeirtS Whi?~~E!iathe aliatar~i!f:'::r,:. 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 ~peri·o.rily to certain groiip'. members. Tangible benefits such:as ·access ca11 help to reinforce group identity ·and the · : ~anamaya•ofindivldual members.!; · ·. . · ·, · ::: <· _. · ·· -.,';:.:_:: . .. · ·:.:: :,·,: · .;:~ .. ; . ·. ).~·i::-~~; ~- ... · .:;.;J:~·~· ... ;·~:· ... ·:~-··.;:.~~5.~:~:·<~ ~\~~.;£&'":~(~~·.:< :)·~·-·.ffi£.:; M_The.avatar ~s.tomizatlon feat\Jies offered by Second Ufe;.hOWeV~r:!offer more sul)fle:: methods by whi~h !Jsers can ass.ociate themselves Wit~:! a particul!!irifr<?.up. Some resi-r"' · dents may not want to attract attention to themselves· by having, fur example, ~e· phrase •Hizballah Supp(>rter• floating above 'their avatars. b4t co1.1ld as5ocia~~~tiemselves .witll:. ~~~group by.cre!l_tJ!lg aod wea't~_g:~;.t-~hirt·wlt~,tl:!_e j-fi~~llahi9!J~.<>PJ~ ,lfa t~hi~·~iih1 th~ log~~is St:ill,~~:~ra~en,grp~~i~em~eis,co_qlij:,~e.~o·h~~~~eirtr~at~i's~~~~~~~f~t; s!"t1rts With a mot_e.mn_Qcuous yet !itdl umque.logo,.o~,fhegrQup ~~Y.:qt:,t•de;that w~a,n~;! a particular piece of jewelry (again,~ unique item cf.lfted ~a group\member and giVen·, OJlly to other group members).i~entifies a i"esiQen~:as a member of ~~at 9roup. Alth~nigh · these understated methods would not provide the technical benefits ofan officiill mem-: bership in a group (such as being .. ~bie to aceess gi-&oj:H,w~ea are~~Bf.the wartd),.they,· '. ~o~d.allow~.r~up:m:em~rsJo)~l!riti:tY:?ne~n~.~~~a.":''i?~g;thgq.~~if~:p.tot~et:~ey%~~ withlll the virtual world. Again, these methods could stdl be .used.to ceme t the resi:!~·.r dent's •ana maya" as part ofthe group and the virt~_al:world 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 break­ers.

(U) Customs tnul Values. Obvi­ously, 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, cre­ating 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 no~ have a sense of pur­pose 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 under­standing that conventional communi­ties 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 implica­tions of digital tribes remain to be seen, but they will likely continue to grow. Connectivity is the linch­pin of this expansion; broadband penetration has lead historically to virtual world expansion. Ac­cording to Gartner, "worldwide, 17 countries will have broadband penetration rates of 60 percent or more by 2012, up from five coun­tries in 2007." Furthermore, "with a projected 77 percent household penetration rate, the United States will be tied with Japan for the fifth­highest 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 multi­player 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 compel­ling. 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 rn••trlrtPll or mosques. Some IPaJrticipa.te religious rites such the Hajj. Second built detailed and

churches, catne•t: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 lijtc~-rruncjed viduals with whom

activity provides for community

cotte*on, the spread charity work,

On the negative emnrcmn~en1ts also provide

$us.ce):)btJole indi­hlnlnr:alllllnufor extremist

use of virtual

(U) Please see AJ:•PClnOJtx 3 for a de­tailed 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 s·1 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 ~e future, it is plausible that a ma.Ss of • • people would be extremely good ~t re.-::owruzm~ 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 ~o recognize and explore.

(U) 'Dte implicatio~ of this de\ielppl'll.ent both' negative and positive. A rise in ....... .,..,r, .. cur, since "griefers" are individuals exploit system rules to disrupt ~e ,.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 recog~ruzJmg p~.tter 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, jurisdic­tions with stable, balanced, and progressive legal and regu/4tory approaches to these wor/Js-specifo:ally ones that take the. "consent of the gov­erned" into account-will likely acquire a decisive ad­vantage in crafting the culture, form, and content of virtual

(U) Economies are necessary In virtual w-tn•rlllllll!!:

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 ". u~ .. ·~·'-1""'"• users, and support economic role-playing. 41 In many I~tartce:s, 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 proc1uc1t~on 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 orc•k: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 hn!~1n•~"-~""­people who run them are comfortable basing decisions on tions.43

(U) Mobile devices will likely become more bUlllDf~-lntmd reality glasses appropriate for everyday business use caJ:Iabl¢ between the real, virtual, or "mixed reality" worlds ii:Lv<:wii:Lu~ 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 p.n;•uu~~l'u 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 avail­able in real time a.rd enables non-ed­itors to contribute fto the documenta­tion. In this proc~s, they restructure

fii~~:j[]~~~~~~!~,~~~~~J~~~;~;~~=e~c~c~ti:~~~;~i~~~~~~:~i:;n,J~~~~~~~~~~~~={~~~~~:~. -:.::: -::: .. ~. :: :rr== a

~:t"ji,i:;r~:":;t).•~_·"'-•• \;\~:~~~:{j):~·:,) : (U) A c\>m~~:.:

··-~·

·' · · · .<:~;.~·'. . than a

tra.<lltiO~laJ, highly permis­lann-cln~lf'n intranet tool.

anyone to edit information, no special

nn•VliP·O"Pl: Or knowledge If wiki

pfllfessi,on•al interests, previous posts

contact informa­atmosphere 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 uu•t:• 1~:u• 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 cruille:ng~!ng 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 v·~~v''"~ tion in the virtual environment needs to know what work during his or her absence and what work still·may 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 cur­rencies more suitable for micro-trans­actions and easier to use, acquire and convert to or from real world cur­rencies. These properties will open

(U) QQ Coins, gained such wt"411es:tl>re!ad use by March

up virtual-worlds operators' markets, world. The ..... r·~••.-a allow for new game-play possibili­ties, 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 transac­tions. 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 gener~y ten­derable 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 in­creasingly accessible via mobile devices, it is inevitable that they will become integrated with mobile­based 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 convert­ible 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 cur­rency properties. Their implemen­tations 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.

o;;K•uc:t••u~~ 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 emte~~nce convertible and ..... n~·...,'hl ..

world-based cuJrreJnc:b.,es

(U) Virtual world ,. ........... n,.;.a~

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 emer­gence of signifi­cant virtual world currenaes as economic, politi­cal, and criminal threats. Like China, they may enact legislation or regulation to eliminate or con­trol 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 exc~r1ge 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

"iu~:~;;u"!':,_,_;.J 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 qx•~n<mJI:t: 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

•aTRMiict~~~ China subseque~tly 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, ecclnClmll¢al1~ 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-reg­ulate 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 launder­ing. There are numerous internet sites that offer to trade large blocks of virtual world currencies "off ex­change" for rates considerably worse than those· available at official sites. The only advantage to accomplish­ing 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 inter­national 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 cur­rencies 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 conver­sion 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 top­level domains by small countries to private companies demonstrates this phenomenon.

Jru~tlton of eco­virtual worlds

only a few countries addn~ssi.nm 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 rn•nvll•rnlhl ..

world currency. not state whether third party seco•ndary cient to allow for coJrtw:rnm

ing the definition in If this is the case, m-wo•rJd all major virtual we1onr"'"""n'

be subject t9 yahie income taX. 67

-of virtual world or this situation is uu''"''~""u''"' prompt companies tries with more mr•rl.P•r;~

I (b)(3) ..

.(.- U·)· P -(_ A.·u .S- I B L . . -. , .

.(U)

MONTE.NEGRO.. ' . '

-B-ACK IN- 2·01·0· ~-···· ·---

. '

(U) The plausible future creatively inteipret_ed below dem• start:· Other·games had''eoon~inies~· basicrilln:ither just back-fit onto qld-school .onstrates· the pqtential for th~ gro~ of businesses in virtual·

worl~ and the illnma~ ilnpact ·t:hat virtual worlds could .. thinly veiled cyber-Pomi schemes, or wery fj.ltldamc:ntally

. have o~ globai economics: of chance. . . ·

.. /' -(U) It probably seems. obvious now, but back theri.people (U} Of cqurse,.we o~e a lot to some of the

. thought I_ was CraZy. ·Maybe SOIJle still do, 'Qui·.eve~.t)ley ~ .. "·before.)Js, so I would hasten to applaud Qf·the old "econ-. ' . ' . ·' ' . ' .. . . . . . ,.

using the Montem;gro V~al Gold'piece.(Geeps); In ~ .• - omy' games .. Unlike our predecessors, no,we~n:r •. we. had a· mix

event, !low that a ve_cy fa5t ro years·have gone by I thought it'• of gaine d~gners, economists; engineers, bUsiness people wo,lli.d ·be useful to reflect a_ little,. as much for lriY own benefit e . WOrking together f~m the OUtseJ? a,nd ~t US elo~ the !15 for that of a,ny interest¢d readers. . . e ·.economics gaps. We deSigned our garrie so p~ayers woilld

· · . .. . · • w~t.to per.forn:i ~rVices for an~ trade With·_ _another, and ~o (U). Monteriegto's GDP has mcreased mo~ than 1.0-fold in • that i~ 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/ T~e· re~ons we did this lire so obyious that

stanchlrds of living in the w,estern .. world:.tc:~ one o.f th~ 'high- ~Qple_ do:n?teven tliink aJ>out $em any· but at the time

est. We are still~a:.small.country, .but we punch way;abo\le our · it was a~P.re'tty ne\V, way·consider gapte-play

· weight: we still d~ ·not produce. m~ch iri the w~y·of natural· follo~g ~ctors spu~d us t~ approach in-game economy

~sources or tangible items, but we are.no~-the e~nter o_f tl_le' •. in this way:'. ' ..

virtual ~o.rld industr}r, a 50_billion-US.~uaci/ye~·b~si.~~~· ·' .. The Geep has becotJle a rese~ currency·as ~U, which 'puts ~ · (U) lnveslmimt ~ •. Spending: When buy a ~e us_ .in th~t select club· of e~onomi~ gi~~ with poptdations . they tliink a.b<?~;~t it in two wars: ~pending investing.. Bef?~ .

three· orders of magnitude greater than outs, and in*es us a .. AitWorld eV~ry·ga,me (with few exceptions) real player ori the world s~e. The.'':Monteneg;o·Mirad~,;- ·. spend money. With Alt\:Vorl~, in· contrast,

is a phe~omenon that has J>een ~tten· about.alot, 'and.it earn digital items thai:· will alnios~-certainly has be~n attributed to a whole hosi:·of causes, but we can. ; ~ueih the_future. Moreover, some of

. traee it back to one point in time, . .ind one. decision. · crease'in ~ue. Wh~~ pe~ple invest they

(U) As riearly .everyone now knows, in· 2009 I launched Alt­

'world with,same frierids ofniine. At _the time, it.l~oked ~e just MMORPG nding the tide.of the-late 'aughts venture capital-fueled MMORPG boom. Even though 'there w~re ·a~ut 200 otht:r garries th_a:t ~e out that yea.J? o~rs was fun . en<~ugh.to-attm~t a few million players in shon oroer. ~de from being unbelievably fun, AltWorlq was di!ferent ~ecause it had a robust and . in-world ' the

thcir wallets ih~. ~h~n they ,sPend ..

. 0 .(JJ) Lol.Jer Cos~ of Entry: Mf\liOIRP< . . ~ ~ . . .

. allowed users to play for free but re_qui~ed irades were just begihn,i~g t~ take off back

zero cost of ~ntry ~~ ~ great w~y to eritic,:~ . prOdu~t. .Beyon~ that, if they know they

at least partiaily, they. are much more ~ely thei~ entry as the. net. r> ' .

some resale·

items might in­to. be lo'oser with

' .

· ..

• 0 ~(U) Fainu~~~s': Before We introduced AltWorlcl, most

online ganies that used: an it~ril-sci.les meChanism tended to

have prices that were either created by the game operators··

or were thinly ~e<;l on small mafke~ and th~ were highly volatile and subject to mariipulation. When we came out . .

with a large integrated_world.and economy wit\1 g<>od mar~ . . _ ket and price discovery r_nechanisms, players responde<! with

more trade, and a viJ;tuous cycle ensued. Faii, transp~nt · ·. ·

pricing is a good basis Tor a currency, and vice ~ersa~ .

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 ~e:· 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 wi~ the Geep card. economy ~Sa Cuqency m~re trustworthy b~use it playerSto.be able to pay for stuff on Alt:WC>tlcli

:gives ~se-val~~ to it-if people always want to buy_~ new.. not.require t;hem ~o-jump through hOOPs pr

set of armor in-tlte ~e, m_oney will always change hands, Of course we w~re also loo~g al usi11g a stolrea.-value

The bi~r the ecoilo~y, the better _the:~urrency works. card~ a way to r~uce:our credi~ ~d fraud pq)Osurc::s, Likewise, haVing a currency that is usefUl outside-of the the re.al p~wer o( the model was n.otiu>JJar-enlt to i.Is when we game as a. real currency makes the currency more reliable • decided t~_act on it

for in-game~- _LiqUidity- anddepthmakefor·a good (and. • manageable) velocity of money, which ~akes for a better .. ·• (U) So now· I guess. the game reasons foi: gaine. . · .• ~m;l.' re~il~ish curr~ncy ~ pretty. clear, but

.• reaSons to gofi"Qm· real-ish to real, _and why .l\tl<>Dtlmegrct?

0 (U) lnteroper~Jbiliti)l: When we made.AltWorld Gold • useable in 9ur second ia,me, Prrates vs; Ninjas, peq~le · •· 0 {u) Privti.CJI: . Some of. our players live thought we. were crazy. We did it out of pure expedienc~ -~.while others simply-do not want ''the Man"

we ~anted 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 ~at 'nobody ;nt·n·,.nl .. l:·iin

markets. Of course, it turntd out that having a deeper . . ·. It is :a fair criticism ~t our country's . laws" facilitate it-meta-economy made it a lot :easier to cross over in~·tlie real · .·licit activitY; b~t in .. Mo~tenegro we belieVe individuallibeity

world wit!'t oilr currency f~r the reasons I descril)ed above. . trumps ~e right of _the state in almost ~ Of, · · course,. we _d_iay.;: the line at te~rism "nf1 .. r·nrl1r>P<

0 ( U) l'llllta'llt Grilification: · ~e11 il game rewards pl_ay~ ers with something tantamount to real money, right on the

spot, they tend to respond betteri When it is not tantamou~t 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 c~ f>eople had to use cash, .

clumsy debit( credit cards, or services like Pay Pal. They _al59. ·

had to·use the· currency c;:o~~ding to their g{:ographjc

location or th~ of a web merchant ·on the <:>ilier side of· · the world. With· Geeps peopl~. could do small (and large)

~sactions an),where, with anyone, and ooUld ·be. confident

that they woUld get a fair trllde. Non~ of this occurred to

· ity, but that is a distinct line. The great ~de

haS been· that. Mo~tenegro has become an m':eniac1onaJ · arid.banJring center, and i:hat tho5e.indlustrie8

worlds as th~· la_rgest contributor to o~r

. 0 (ll} T~: fu:2008 Sweden said they v.rPTPI<rn;r•a

levying·yalue"aaded tax on jn-world u· an:sactioins ·convertible cu~ncies, 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 whi~ 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 Mo~tenegro and cr.:ift i:he laws that we did_ to escape re~tion. 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 transparen~y, that we would enforce contracts among_ play­ers, 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 friendly-~~ its ~ontinental neighbors, but did not want to switch its cur- . rency to the ~uro 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 to·do.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 over~ght. :

o (U) Sovereign CtiTnmCJI.= Cmr.vertibilili)1: Having . the Geep become a reai~. state-issued currency made total

sense to us. We wanted our players to have ~e confidence that comes from coin issued by a sovereign state as well as the ability to freely convert their money. We also wanted t~ have a diversified economy' that had anchors outside the game. Of course, it was not lost on us that there ~ould 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 com~any's'. revenues. Our company's _inarket cap exceeded the coun­try;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 signifi~t industrial base. What the

country did have was great geopphy, an educated p<ipu­lace, 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 a·counti:y that protected their rights.. We1also did not think our sort of cyber-hippie statement would m e Montenegro a · w~rld 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 industries·and 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 prosper­ous in Europe. Our little country on the A riatic,just 700,000 people, sitS Side by side with the United Sta , the EU, and China·on 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 ~•~ui~•n~1nt:~ possible paths for virtual world development and \..uJuu''''~''':. ing existing governance structures within virtual and 5 -t .. "'""

determine whether there is an appropriate space for anvl-r·nnroPrtt

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 n~n~m,,.t .. 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 n•~•:••ut:L 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

32~~~~~~~~~ 1> 0 Technological improvemenls in the ex­

perience. To reach a global audience, virtual worlds will need technologi­cal 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 univer­sal, virtual world software will need standards that enable developers to build and interconnect these envi­ronments. 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 resistan~e 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 eco~stem. The develop­ment 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 com­pany to build. Instead, a vibrant and diverse ecosystem of partici­pants (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 excel­lent 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 in£orrna1tio~1,

social interaction. In addition to public law and potential regulatory schemes, virtual worlds are also gov­erned 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 fill­ing these protection gaps.

(U) Good governance requires an evaluation of whether government intervention is necessary at all. VIrtual worlds ha~ strong self-reg­ulation; 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. EU­LAs 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-cre­ated avatar is actually owned by the company. This is akin to Microsoft claiming an intellectual property in­terest 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 ~pected. The EUIA also permits or property. In · the company to gather personally may be threatened

identifiable (U) In the upcoming battle informa­tion 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

.;.,..,.T1nm,plil;t~ that obtain the '""'"rr"'•n by providing

, t;~o:uwt::; are likely ~·varttaJ~es in their

worlds.

(U) Real Citizens, Real Expe­riences. 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 trans­formational change in our society, our economy, and our efforts to safe­guard the homeland. The transition­ing of these technologies into main­stream society, tliough, raises privacy, identity, and criminal, jurisdictional, and revenue questions.

(U) Death and Taxes: The Inevi­tability of Government Involve­ment in Revenue. A second in­~entive 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 Congres­sional 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 col­lecting tax revenues, it may explore its role in defending the stability and continuity of operations in virtual worlds to ensure its uninterrupt­ed revenue stream. Govern­ments 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 cor­porations within the virtual world, and government organs-the courts and regulating oflicials-would.share an understanding of the complexi­ties 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 corpora­tions to move their operations "off­shore." 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 unregu­lated or less regulated.

(U) The Enfort;ement Gap. Policies, regulations and laws have always lagged behind the develop­ment and use of new technologies. The lag is the result of a model of top down governance and policy

formulation and bottom up tech­nology development. This

relationship creates a gap. The lack of explicit relevance and

applicability of the poli­cies and laws and lack of

willingness by govern­ing 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 de<:uj:l~~d harassment and punishable under and, as with other .,_-. .... v • .,.5.~..,,

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 pos­sess 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 conversa­tions 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 intention­ally designed to elicit responses from humans. Virtual objects and land are designed in order to make virtual ~orld citizens act as if they were real. The ability to" buy or build virtual homes or spaces, and form attach­ments to them, is real.

(U) Protecting US Citizens' Personal Information. in. Virtual Worlds. The issue of privacy also presents an opportunity for govern­ment 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 Con­gress 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 con­sumers' consent to legal clauses that permit companies to search users' computers).71 Companies.also often

lose control of the personal informa­tion and credit card numbers of their customers. The amount of data that companies gather, combined with the common loss or theft of that in­formation, creates a security threat to US citizens. For example, AOL col­lected information on users' searches. That information was made available to researchers, but was also uninten­tionally made available to the general public. This leak gave adversaries the ability to find out what AOL us­ers had searched for. Although the search profiles were not identified by name, most were personally identifi­able because of users' tendency to search for information about them­selves. 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 accord­ingly. 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 vir­tual 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 enl•orc~ment on data leaks to

..( U). .. FED 'E-RA L . . IN. F 0 R,M A r··r'a :·N.

S. U P E ... R H.'I G H W A Y ·

PROJE.CT

...

:r

• r

'1.

(U) One plausible: future would ~nclude a Federal fu-. formation Highway Acfto fund and .the best and· fastest digital "freew~ys" 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 cor1n¢cti~11ty. . . .. : .

• .(U) just ·like 'Ei8en:hower's Federal Aid .. "'""' ...... u

: .. of 1956 (also rtfeqed to as theN. · . • . De~ense High~ays.Act ~f 1956), the ·. government • would use 'this n~w initiative. to' fund digital infra-• st:n.icture with'its citizen.~· massive· matGng Amer-• ica ·th.e. p~ace. to be w'hen ')acki~g" into . worl(Js. · .' ..

Eisenhowf!r ·understood the advantage and speed o( mov~ment"for a soci~ty 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,nmmP•rrP

military te~no1ogy, and free cmnrrmnlil:a.tions inform~tion exchange. for a brighter the phrase been true·r, "Xf you buil~ it,

. '

(U) Stiff foreign competi ·on: (U) China and South

(U) Though virtual worlds originated In the un,~U.d China and South Korea have capitalized on the emergent technology. They are current industry le~ders-with

ginally ahead of China-and have reaped cultu~ u"''''"'l~ 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 stim~ate the industry. South Korea has taken the lead a reliable cyber infrastructure while minimizing ae~,reu>pl'l~eru restrictions. China, in contrast, has lagged in adopting primarily due to the size of its population, and has also '"'"~a.u,,..,.,, ...... regUlations for industry. China has the potential to given China's potential user growth and·firm 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 ... v1"U1'"-~'" 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 inf~tructure 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 .1'~ users accessing from notebook computers and mobile ae,lllct~s 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 "u'"''-~•u'-'··~

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 ~

.. :..· '··.

"·

:.:IH~Iilrii!~~=~;.;;;;;;;;-i~~;;;;••i;;;&;;~;;~, ··. ::;,,: : .:~'> . '"'-··"D·~·r '·· • .= h;. :·

-... ., .. · .. . ·. ~-··'

. '··

. . ~-~· .,. t~:

. )• ·"'.:' .... •.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•~•u

[> law gain traction in the courts, and Shanda acquired a controlling inter­est 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 domi­nant 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 an­other 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 War­craft was China's third most popular online game. 96

(U) Replations arul Trade Bar­riers. Chinese authorities operate a dense and restrictive regulatory

regime that both m· f1pctses content controls offe~importanta~~aram1~s mestic media. The1uu:u-J.v.<e~•u

mercialization of u~Juu'"""' the introduction of media such

changed the system but

state's control .u•'!•"'"''u, the Chinese

government is ext:e~1dmg regulations to

nese smte and '"'"u·~·-., ....

""''~ ... "''-"is a clear

more serious issue is that success in markets may well

Smtes, the the long term

's domestic Chinese firms

and Chinese mc1de~s--includirag

stra~eg~c secto~ to or controlled by

""""''"'"'''"'.,. The govern­su,;pend licenses

nn•WPI•Illl incentive for all

0 Extensive pre­tion censo~hip

post-publica­prevents 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 volun­teers screen media for controversial content and report "offenders" to authorities.

0 Campaigns to develop and distrib­ute "regime-friendly" media contents that ensure that media has a pro-gov­ernment "spin." The government has effectively fostered a climate of vigorous nationalism in which con­cern for human rights, among other issues, is understood as treachery.

(U) New technologies like the in­ternet offer users new freedoms, but also offer the authorities new means of control. Chinese authori­ties maintain a firewall that pre­vents 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." Pursu­ant 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 offend­ing slang and profanities with blank spaces.

(U) Further complicating this regu­latory environment is the fact that management of online gaming involves several government agen­cies whose responsibilities overlap. The priorities of these bureaucra­cies 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 en­tertainment 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, Thai­land, 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 explo­sive growth in cyber addiction, the Shanghai Sunshine Com­mimity 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 on­line 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 com­munist regime has followed its pattern of deliberately retreat­ing 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 contrib­utes to the economic progress of the country. At the same time, Beijing insisted--under the "four basic prin­ciples"-that such liberalized social and cultural activities not challenge the rule of the Chinese Communist Party (CCP). This policy change au­thorized the spectacular resurgence

internet

of entrepreneu hip and the abil­ity 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 gov­ernment 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 boundar­ies--such as p sorship throu internalization of acceptable n rms, fostering the appearance of omnipresent monitoring, an making exam­ples 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 con­trols. 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 Chi­nese culture" and at the company

"can make sure that pornography, gambling, violence, or politically sensitive material will be strictly for­bidden."102 These restrictions do not limit the game's international pros­pects, 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." Cu~ntly the general user interface is available in Chinese, with limited English translation, and regis­tration is available in both languages, with a 15 percent penetration of

international users. 103 ffiM has an­nounced a relationship with HiPiHi to optimize the technology platform and promote the virtual world busi­ness 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-na­tionalism 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-national­ists critical of its dealings with other states than from democrats and hu­man 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 effective­ness, 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 chal­lenge to the state.

(U) Military. The Chinese People's Liberation Army (PLA) employs 3D virtual environments for both simula­tion training and for public opinion analysis relevant for political indoc­trination of PIA troops. The PLA General Political Department (GPD) is directed to track "hot'~' ~o~Q<-u:.:o•u•u

topics and assist in Jr~.WUllllJrl. opinion. 105 To ac<:~n1p11sn 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 includ­ing virtual simu­lations.106 The PLA currently uses virtual envi­ronments to train traditional "Red" and "Blue" exer­cises.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 Ten­cent'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). Seventy­four 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 mil­lion netizens go online every day and 57 percent regularly visit gam­ing 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 govern­ment also created the Korea Game Promotion Center ~ater renamed the Korea Game Development

·and Promotion Institute) to extend government and financial support, to promote game exports, and to en­able new gaming company start-ups. They later established the Game Culture Promotion Council to facili­tate 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 Bu­reau to promote and monitor game industry and culture in collaboration with the South Korean Ministries of Commerce, Industry and Energy, and Information and Communica­tion.

(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 internation­al presence. Among these are:

o NCSoft. Founded in 1997, NC­Soft 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 dt!'~Jc)prneJnt to-play model that has extended MapleStory n.L&•.L'-''IL~

~~~

• 0 WeMade Entertainment. Found­ed in 2000, WeMade Entertainment produced the internationally popular games Legend of Mir II and III.

0 Gravity.

0 In August 2007, Shinsegae De­partment 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 advan­tage ...

the shop. Custom­ers input their body measurements onto a smart card that enabled them to model clothes on personal­ized avatars off in several

international markets.

0 SK Communications. SK pro­duced 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, ~hich, 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 evang~lize among both Koreans and foreign­ers, 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 Ko­rean President began offering a "virtual reality tour" of the Blue House, the president's official residence and of­fice compound, via the internet.l21

0 In March 2008, Hana Bank began offering a Second Life-like virtual world to teach basic econom­ics 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. Pres­sure to regulate on-line games in South Korea largely proceeds from eco­nomic concerns. The govern­ment faces two conundrums: ho~ to regulate the gains made in the virtual economy through the trading of on-line game items, and whether to allow the exchange of vir­tual currency for its real-world coun­terpart. 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

er~tto11S on how to ,...,.,., ....... ...,the trading

game items for real-world

currencie!l-:actiVitie!l that by 2006 estimates,

approach­Ultimately,

:.n•nr,.,.,.,.n the trade prohibited their

.... , .. _ .. ln..,ln currency.l23

no1w~rer. have required Alrr>nn,.,. these have

been the problem of hackers--alleg­edly 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 iso­lated it from the major­ity of its industrial resources.

(U) In the case of information technology, the Korean govern­ment 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 actu­online

children are in their children

in partner­producer.

,.w"'"'u·"" internships '"'".,'"''trv as well

(U) Use of virtual actiVity that-is u.:;•~u•1•u"'l-l 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 .. ~ .. 1v ... 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 distinc­tion of leading in the adop­tion 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 there­after the South Ko­rean flag that flew over the islands was mysteriously replaced with a Japanese flag, spur­ring Second Life to install a security monitoring system to regulate future changes to the islands. 126

(U) PC Bangs. Even with a 90 percent satura­tion 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 member­ships or pay-by-the-hour service. PC bangs consist of dozens of comput­ers pre-loaded with the most popular games, all connected to high-speed internet for lag free gaming. This provides customers with an environ­ment 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. Gen­erally, 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~oluiucl 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 War­craft 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 re­spects. 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 •: ...

.. . ;:·1r~:;.;··~~tG? · ... ·.:. : . ~ .. : - t. ; .

(U) Intelligence, counterintelligence,

an.d ·law enforcement.·

(U) It Is likely that the growth of virtual and gaming en"i­ronmenrs \·Vill have far-reaching cultural, social, economic, and perhaps even political implications. Some effects "'~II be the result of intention­ally 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 ac­tors 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 t~chnological changes, will likely increase the difficulty that the Intelli­gence 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. effective!)~ •

- "' *%'•' • rl'; "B& z• • a; •• &ae • • i'&EIBCC¥ f i

(U) Scope of the Virtual World Intelli­gence, Counterintelligence, and

e'

57

1) 3)

Law Enforcement Security Prohle~g. __ ------(b )(1) --- (b)(3)

(U) l\tl1en considering the human scope of the_potefifial security threats posed and the opportunities presem~~IJ>y""Virttlal world platforms, one must first distinguish between rl}..r.eats-pO.~ed by intenrionally nefarious actors and inadvertent thr~<!,ts gene:(ared by technological developments in the virtual world:. Amttiig these nefarious actors are nation states and their inrelligence -seiVi~es, non-state actors of various t:)1>es, and ·individual criminal~.

(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 poli­cies 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 N<~tworks of hackers or griefers

0 Non-governmental organizations (NGOs)

(U) Each of these various nation­stat·e and non-state:~ actors may attempt ro exploit virnml worlds dep~nding on their motivations, in­tentions, 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 technol­ogy will ~vcntuallv have far-reaching cultural, social, e~onomic, 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 ava­tars and in-world comm.uuitie,s than with their offiine selves or neighbors mav ,:vel! have the ellcct of weaken­ing' overall social solidarity \\~thin 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 o~ ine selves

iwvd and unpredict­able security rhreats. Of course, it is even more likdy that. n'al-world

actors will simply transfer d1eir exist­ing hatreds, prejudices, agendas, belief.~, and loyalties into the virtual world, whid1 is already occurring. 0

(U) Extremist groups are organiza­tions that embrace a raclical politi­cal or religious ideology that both advocates a fundamental transfor tion of existing political, social, or economic ~ratus quo, and demands that their proclaimed constituencies take action to initiate this transfor~ marion. An iclt)ology is a coherent, stmctured, and systematic workh~ew that purports to identify exactly what is ''w~ng'' with the existing world and to indicate precisely what must be done in order to right t·hose 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 desig­nated as "evil" be fought ruthless!)~ decisively defeated, or even com­pletely eliminated. (

(U) From the perspective of ex­tremisrs, 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 gener­ally cannot tolerate human flaws an~lmoral ambiguity of any kind. The intelligence and law enforce­ment communities should not ignore the proclaimed ideological agendas of extremists or asstm1e that they are nothing more than superficial, ~'high-minded" 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 exploi­tation 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 lnitiall)~ 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 assem­bkd, bore placards, wore t-shirts, and set up billboards on the lauds of sym­pathetic 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 andjihacl­ist 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 evidence. 13~ 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 inten­tionally provocative names. 135

(U) Indeed, as the illustrative exam­ples above suggest, it is only a mat­ter 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 at­tacks by using virtual representa­tions 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 technolo­gies will be. There are two .,

60

~ basic views on this mat:rer. Th6sc who focus on the technical aspects of '~rtual worlds generally believe that dtt' rapid dt~velopment of this teclmolog-y will be "game-changing." It could have revolutional'); t>tTects · on the formation of human identit)~ 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 ter­rorists may exploit evolving virtual world environments, it is best to consider how tht>y have long made ust' of th(~ internet. Although many

spt~cialists had predicted that terror­ists 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 politi­cal 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, disst~minate 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 mobi­lization

0 Posting detailed instructions and online manuals

0 Planning and coordinating specific attacks

0 Fund-raising

0 Criticizing rival terrorist g~oups and breakaway k<ctions 13~

(U) Ironically extremist groups with . an ami-modernist ideology, ~ncludii1g globaljihadist networks, have often been the most adept at exploiting new technologies created by their thoroughly modernist \Vesteru·en­emies.140 So far, cy1Jer-terrorism and cyber-warfare have been overrated threats, at least with respt>ct to terror­ist groups. 141

(lJ} The authors of a Canadian intelligence center report concluded that they could find no "definitive" evidence that :Mi\tiORPGs or "per­sistent 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 pro­vide for user-generated content is inclusive of iriformation about individu­als, 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 com­nmnication 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-di­mensional 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 ol~ject·s provide h)verlink ac.cess to traditional web sires and blog sites,.

· providing detailed informiltion about a topic that the CTt~ator found to be · of interest.

(U) A'> an example, within a Second LilcJewish-bast~d 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, \~rt:nal 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 de­railed. The perception of anon},n­iry 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 organiza­tions, academic instittitions, corpo­rate environments, and government agenc1es.

(U) Community-based and non-gov­ernmental organizations are using tl1e virtual world to provide infor­mation 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 ac­cessible, artifacts provide background and contextual information about the individual in control of that par­ticular portion of the virtual world.

(U) 1-dve·rsariu.l Anonytni9': FtltuJ·e Challenges. It is impor­tant to note the increasing likelihood that adversaries may build or con­trol 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 headquar­ters) s<~em to indicate the groups' . wish for a long-term presence in the virtual world.'' 144

(U) The possibility for users ro estab­lish 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 conver­sation, by voice or text chat.

(U) The creation of topical areas of concern demonstrates shared interests in the virtual world among lik~~-miuded individuals. Users have developed sires and member groups as a way to share common experi­ences 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 raci~1g, 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. Sim­ilarly, these sites frequer1dy offer the visitor the opportu­nity to engage with the . organization in some capacity outside of the virtual world.

(U) Academic insti­tutions in virtual world environ­ments ciffer ac­cess to lecmres, presentations, faculty infor­mation, vir­tual smdent. social activ-·

libraries and school achuinisrrarive information. At present there are a number of rec~•gnized 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 ap­pears ro be a growing, yet: not fully developed, avenue for information dissemination and public iufon na­tiou outreach by stmlems and stalT involved in higher education.

(U) Corporate interc.>sts inunclare the virtual world, providing informa-tion abour products, straregic alli­ances, 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 com­petencies aud product lim·s. ~1any times, companies, both foreign and clomC"stic, host: both public and pri­vate 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 ap­pear 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 informa­tion about the easing of visa restric­tions for travelers moving between Estonia and Turkey. 146 Other edu­cational information alTorded in the virtual environmeur includes scien­tific data, as evidenced by the.> Second Life interactive site sponsored by the US Department of Commerce's National Oceanographic and Atmo­spheric Administratiou.

· (U) \·Vhen~ 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 Sec­ond Life examples c.itcd pre\·iously, the virtual worlds created by users provide real-time access to persons dirt~cdy related to the subject matter. This immediate access allows con­versations that e::-..1Jand upon content,

providing context and insight. Personal interaction allows

question and answer ses­sions, 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 ma­terial. 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 adversar­ies r.he oppornmity to disseminate propag-anda and to inculcate oth­ers to their ways of thinking. Us­ers are able to contact others and to engage in privat·e 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 r}i~ authors of rhe Dark \Veb cvbcr extremism

• I

report, "as .the virtnaJlvorlcl pi~~-_---(b)( 1 ) forms contmue to ;~?l~t; ~ud-manm·, (b )(3)

there -1:> also nmch .1-

- unknown about how 'nmdr automated col­lection and analysis can be performed in these environ­ments.'' 147

(U) Virtual \·Yorkls offer the opportunity to observe technical exjJertise in game play and creative uses of virtuar"in-world" tools. These observa­tions may come in real time during gam­ing or in retrospect through analysis of

artifacts lelt behind on virtual world platforms. Frequently the artifacts will ideuri(v the creator through as­sociated metadata. Users ack~pt 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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(U) Individuals or groups of indi­viduals could use voice communica-

. tion dients embedded within virtual world or online gaming environ­ments 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 consid­ered criminal under state st.atutes.

. (U) Virtual worlds are inherently so­cial comnmni ties. All cmmmmities, whether physical or \~rtual, 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 attempt­ed kidnapping, burglary, and aggra­vated menacing.

peer-to-peer inaccurate perception that their com­munication and file trading activity is more secure from law enforcement scm tiny when it does not pass rhrough a [>

68~~~~;~-~-ty~~ri~~wmm I> third party server. For rhis reason,

specific. attention should be given in the fntnre to those virhml chat plat­forms 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 na­tional security implications. Secli­miue, 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, ralht·r than just being carried away by peer prc:~ssure .... "::H

(U) Con-artistry in virtual worlds demonstrates another implication for law enforcement. Challeng~s of

(U) these platforms allow groups to justify their criminal behaviors in a community of like-minded individuals

available for salt~ in Second Lifi:~. The web site advertising this and c•t·her \·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. Sedi­miue comes in a variety of strengths and soon also in different forms." 152

Two virtual environments, recllight­center.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 "con­nect" in the a·eal-wc:H·Id. \·Vhen asked inn media inten•iew if he thought thi~ would lt:ad to real lire drug use, Uthen-"erse CEO, Brian Shuster, said, "~ify response would be, that if someone ha"' [norJ tried marijuana in the real-world, and their firsr experi-

anonymity involve bot-h the often in­accurate 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 individ­ual that is located in a diflerentjuris­diction 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 eugi~1eeriug as a non-technical kind of intrusion that relies heavily on lmm:in interac­tion and ollen involves tricking other people to break normal security procedures. There are numerous ex­amples of ,;ic.tims providing personal identifying and financial informa­tion in virtual worlds through social engineering redmiques that mirror real-world confidenct~ (con) fraud schemes. The evidentiary trail left by these virtual cons, while it may exist~ 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 al­ways lagged behind the development and use of new technologies, the result. of a top-clown model of gov­ernance 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 govern­ing 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

~-~69 conn~ru rolaw enforcement because issues of jurisdictional boundaries and (U) There is significant potential for logisrical constraints on extradition can arise. Anot·her 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 w~th 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 committe-cl. 1 ~5 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 m~ny other virtual worlds, Linden is scalable when one considers the number of potential US victims that are Lab-the company with control over prc~jected 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 t~ngineering. 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 compan}~ bm rather those that· cus­romers maintain in the company's in­world currency of exchange so that they can engage in virtual commerce. Linden L<b voluntary disclosures show that on August. 1, 2008, cus­tomers paid over 5,226,000,000 Lin­den Dollars in tmst. That equates to almost 20 million US Dollars. 157

(U) Most other companies that have created virtual currencies with real­world exchange rates do not make similar disclosures. It is a reason­able pr~jection 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 compa­nies, such as Linden Lab and Bliz­zarcl, which are US companies, an~ structured such that their require­mems to comply \~ith 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 ~teross worlds, oue can find such companies accepting money in inrerest-bearing accounts and offer­

ing loans al. various rat·es 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 ex­chang•:~. Unlortmwtd)~ since individ­uals find it valuable to own these cur­rencies, 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 vir­tual bank in Second Life until August 2007. Avatars could deposit and withdraw Linden Dollars in int('resl­bearing accounts at several virtual ATJ'vl locations. About 18,000 ac­ccnuns are rt'porred ro have been es­tablished 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 Nu­merous 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 . companie~ such as Linden Lab, have enacted voluntary internal measures w ensure that launder­ing significant smns becomes an impractical option in comparison with traditional online mon('y laundering techniques. One easily located Web 1.0 emi~) traceable to a residential stmerure in :Miami, Florida with .servers in Moscow, of­fers 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 Lind~n 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 laun­dering seek ways to easily convert the proceeds of unla,vii.u activity back into a usable form after their tnte

nature has been concealed. Mind­Ark, 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 enforce­ment is the law of unintended conse­quence. 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 finan­cial 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 win­ners are selected random!}~ 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 en­fi:.>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 busim~sses is that they do not. h:we a brick-and-mortar loca­tion 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 it·s aerivitics ro virtual plat­forms that are more dillicnlt tor the US IC ro moni­tor. This creates a scenano in which

several challenges on US law en­forcl;'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 lim­ited jurisdictions, must now navigate a multi-national geopolitical and reg­ulatory 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 na­ture of vir­tual 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 tradi­tional law gence com-

nmnities are at odds, with opposing· priorities.

(U) In addition to ecouomic implica­tions for law enforcement, the global expansion on virt11al worlds imposes

enforcement agencies will increasing­ly find themselves ill-equipped to deal ·with the inevitable allegations of theti, fraud, and other criminal financial activity. a

.. ~. ..

·-

li_.- ,•

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· .(UJ User-created content. The seale of lww much virtual worlds allow users to modify thc111 varit~s fmm garne to game. Ckmain games, such as Second Lite, permir nst~rs ro create conrt~nt for in-gamt~ use. In d1e micldlt~ of rhc;- spectnun, games likt~ 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 invoh~ng rhe operators or that virnml world. At rhe far end of this continuum, \·Vorld of \:Varcrafr represents a game that doe.<~ nor allow any user created content: rht:~ 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 cre­arjon and modification of contellt b); users ar their own pace causes t·he constant· updaring of applications like Second life, the game landscape of \Vorld of \·Varcraft, however, never changes.

(U) N~trnber 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:

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(U) Age of players. \;irrual \\'l)rlds target players of evt~ry possible age, from children to adulls, or a mixture. The mechanisms for enforcing "Children Only" and '~\dnlt Only" ntles in games or game areas have met with reasonable suc:c.:':~ss, wid1 \~olntions 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 behavior·of 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. G·ame.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; li~e Second .Life, presents no challenges, or quests, for the user ro perform. The plat­torm 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 dt•sign qm·st based ga1~1es likt• \Vorld of \Varcraft with qm·sting challenges for rhe player to experience.

(U) Persiste11ce. Some worlds and games are "persistent," which means that even in the absence or users, the en­viroim1en1· 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 exis1·s 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, su~~h 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 onl~; 11vo dimensions.

(U) Virum) worlds. ho\vt:wr. do uot im·vitablv 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, human~ view highly realistic St!t.tings ~1s )H,;s forgiving-people ure much lcs~ williug t·o maintain suspension of clisbdief when confronted wit:h thi.ng~ rlmt· l(•ok r<·al. Second, from a game design perspective, many types of game•play do not lend themselves to 3D. ln fal~t., IC.1r more abstract games like puzzles or geometry-based games, a 30 interface can get in the way; tuort~over, tlw simplc·r 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 dc~mographic. Tlms, the developers of children's worlds generally do not use photorealistic: graphics technol­ogy-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. ~'lobile cle­vii:-.es, such as cdl phones, can contain games, and g-amers increasingly w•e 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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. ".'. insh'uc6o11; and sbideti't collabora·.:' · . .' n'f~J,lf~.-:,fssue's p~4\il1ir1g~~{) 'iilt¢'r6_1)- -···J:I'ii19\~ati!)n·~~j)(!r~tio.t~(·Grai'lt,.:u'l0:'" · ,_;;.: ': .· · . ·; · ·. : .. ~ tion. U r~iversities·(fot 'example, -: .. : · .. erabilitv and its iilipacts oi~ ~ft,~are . · · ·~s~d. th~· n1on~y to. devd~p:-a' i1e~v , ·. ·

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.·: . ~nd.or~J1izations (th¥ C~nter fo(: envi~nments aff~ci:. society a~ci . :dence ~~d th~E\-ft{nd~l'g of~D virtua!.<' . .

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(U) 2D Internet . (U) 'fhe trildit.ional "Hilt'' \Vcb p<tgc bnsecllnternet detiveclli·OJn document fonnM pnges.

(U) 3D virtual environment (U) A user inteditc.e nnd suppon infrasrmcttu·e th11t pn;·seuts data in a 3D perspective ~o 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 wirdeS~S c.omnmnic.Mions. A 4G system is intendt'<l ro pro\-ide n solution where voice, data and streamed mulrime­clin can be given ro users on an "11nytime, anywhere" basis, nnd nt higher dntl'l rntes than previous generations. The intenta­tioilal telecommunications I·e~;lll:ltory :md standardizari•)n bodies are wo1·king 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 <'~re pr~jectcd 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) '~\nimn'' 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 physit~•.t Sj)l'ICP.. Bringing these two coucep[.~ together to··descrihe n di~:,rital 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.;, lL~e•· 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 mA­chine~, especially inrelligent compnrer progmm!:."

(U) Alternat~ Realiry Game (U) An alternnte reality g-ilme (~L\RG) is an intenoctiH~ narrative rhar uses thl:' real world as a platfonu, often involving mul­tiplo: media nud game d~mems, 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 re~enrch whicll deals with the combination of real-world and compurer-genernted data. At pt·es­ent., 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 gr<'~phics. Advanced resenrch includes the use of motion-tracking dat11, fidncinlmnrker recognition using mnchine vision, nnd the constt·uction 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 re.pl'l~senrnrion 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 B(~<ud 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 modo:~n, 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 11plo~tding 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

t~)l)lll>'~, Allowing users to meet. each (other. ln recent vent-s. the term UBS is somerimes incorrectlv used to refer to RllV online fonmt or mess~ge bo:~n:l. • · · · ·

{U) Blog (U) An online dim~~ tllt-nnt 10 be read by uset-s of th~ lnrt-ntet.

(U) BotJJets (bot network) (l~ 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 c~lled trading card games, are played using speciillly designed sets of c:-trds. \·Vhile trading cm-ds h11ve been arc•nnd 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 fan­msy genre, so many of the cards represent creatures ilnd magical spells from that setting. CCGs are-distin­guished from other genres of games becRnse the Cl'lrd can dynamically reconfigure the rules dming ph~y.

(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 st01·e.

(U) Digital Tribe (U} Social groups that coalesce nround" common intet·esr 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 descr·ibe 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 \V;~rcmft, but can be used to de.scribe the cunency of other environments. AL~o a privare company.

(U) Free-to-Play (U) A service tltllt makes g;~me play av;~ilable without chargr.-. Some free-to-play services charge for the pro­gmm, oth<'t"S chm-ge for game upgrades. This nsnally refi~rs to the lack of a periodic setvice chl'lrge.

(U)GameGod (U) A cOJl>oration or person who c.rentes, uminr·11ins, and controls the game world.

(ll) God Game (l1) A t:onstnu:.ti(lll and manot~meut 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 mnouc•mou.~ chnmcters LO guard ai1d influeuct:O. ·

(U} Gold Farmer (U) A plnye•· who engages in delibet·ate nctivities to ncquire ("farm") items of vnlue within n game by exploiting elements of rhr~ 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 sign:~ Is enilbling GPS receivers to determine locntion, speed, dit·ection, 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.m1·encies.

(U) lnsumt messaging; n ~e1vice 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 s~'Stem 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 vit1U:~l wm·ld, Second Life.

(U) Massively Multiplayer (Li) A type of ~nile thar is cnpnble l)f s11pporting hundreds o•· thou~11nds of phtyers simulraneously.

(U) Massively Single Plt~yer (U) A mMkcting h~rm coined torn n.::w gAlliC thilt n·IJ~.,w~ indirect., nsyndll"t)llOll~, online intcrnc.tion bNwcen plAyers.

(U)Memes . (Li) Denotes fill}" lcarnt~d fi~f.'ling, tlu;mght or ~ehnvior espt.>ci::tlly those that. a•·e eilsily pnssed fium person ro person.

(U} Metaverse (U) A vinu:il.world, o•i.gimtUy desc:Jibecl in Neal Srephenson's 1~192 science fiction novel Snow Cmsh, where. hmmms, 11s ava­r·nrs, inrcrncr with each orher <mel softwilre agents, in 11 thn.~e-climensionill spt~ce 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 Po·~ket size computer device, connected to a wirdess network, t~vically 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 ·OI~ject Oriented; a text-based online virtual reality system to which multiple users (players) are connected at the ~~me 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•; ~mel the other is to refer to any 1\HID that uses ol~ject. 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, design~cl 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 role-plaring~ ·can be conceived of ns a thematically charl:,red chaL-mom with a li>cus 011 t"Ole-pl"l~ing. Cetuin ~l>es- 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' pm·ticipate while browsing weh pnges. Pl::ty~rs 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 event~ when ilnother player uexr visits tltCtt pRge.

(U) Pay-to-Upgrade (li) Bu:::ine~s modl:'l lor ouline g:uui:'S in which phtp~r~ 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 extreme­ly 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 g-<~mes, will1'others.

(U) Persolla (U) A pcrsonn, in the word's f!\'CI)'day ns:~gc, i:~~ n social n>le 01· a chnn'lctea· played by nn nct~11: The word clcaives from the L111.in for "mask" or ''cllftrActer'', derived from the Eu·uscnn word "phersu", wirh the smne memiing. A person's tom I online prt::scnct~ induding t:mail, phone, chat, and web surfing.

(U) Phishin.g (U) It is the caiminally Ji·madulem process of Attempting lo ac:qnin~ sensitive infonnation such as usernames, passwords and credit card details, by umsquerncling as a trustworthy entity in an electronic communil~ation. 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 m•mbe-r of reported phishing incidents include legislation, user n·aining, public awm·e-ness, And technical Sl:'t:mity llli:'ASUI"eS.

(U) Pltreu.king (G) A sl:tng te-rm coined to clescaibe tlu~ activity of a subculture of people who study, c::•q:ierimeul with, or t'!l.l'lon~·ldeconuuu­uicatiou systems, like equipment 11nd systems connected to public telephone- ne-tworks. The te-rm "phreak" is a portmanteau of the word:;; "phone" and "fi·eflk." 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 i~ sometimes called the H/P culnm~ (with I-I' standing for H11cking and P smncling fot· Ph rea king).

(U) Pseudo-Photograph (U) A pseudo-photc•ga·~tph 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 espccinl­ly rde\'am regarding child ponwgrnphy. In rhe UK, the CriminAlJnsrice and Public Orde•· Act 1994 amcnclecl the Protec­tion 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 t·he 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 telephone­systems, 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 b~· QQ Online, A popular set of cmline scrvil~es in China and South Af1icr•, which users liSI:' ro "purchase'' QQ relarecl items for 1hei1· ava111r and blog. QQ Coins a1·e 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

rai~t:d 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 inte-ractivit}~

(U) Real-Tim.e Strategy (U) Sta·aregy game in which rh~ action is pbyr.d out continuously without breAk~ (as opposed tl) turn-bA~ed strategy games).

(U) Rhythm Games (U) Mt.t~ic· based g:uues such as Guimr Hero and Rock Baml.

(U) Real Momry Trade (U) The t~xdumge 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 n~sume t.h,· mi.:~ ,~r ficrinnnl chArnctcn; :mel collahorntivdy cn:nte or follow stories. PAr­ticipants dttl!nnine rh~ nt•tk•ns of t.ht;ir dtantcre•·s bn.sed on their c:hamcteti:tatiou, :mel tlle actions succeed or fitill'lccordiug to fl Ji:wumlized ~~·sreru of rule~ and guidelines. \·Virhin rhe rules, pla~'ers ca11 improvi!>e li·eely; rheir choices shnpt· tlte diret:­tion 1end c•tHC<Jnu: of rhe game!!.

(U)RSS (Ui A fflmily of web feed formMs used ro publish lh·qnently updilled content such as blog ennies, news hendlines, i'lncl pod­l'.asts in a st;mdnnlize~l 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 s~t c)f rules, often embedded in a videognme or computer progt·am 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 (u~u111ly 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 card~.

(U) SpJ!Wan (U) Soft.wnre surreptitiously installed on n computer thl'lf rep01·rs bl'lck to the cCJntrolling entity nbont the use of, i'lnd infornul­ticin on ancl::~cc.essecl b~; 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 wer~~ 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 '~ith such ~timuli ns to give the tf.ding of being in thnt othc'r locntion. :\clclitioni'lll); the usetN m::~y he given the nbility to 11ffect the remote locntion. In rhis case, the \tser's position, movemenrs, ::~ctions, 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 ~ve of g<'lllle involving stmtegy where plnyers move sequenrinll~~ one nftet· rhe ocher (sucl1 ns ches.-;); cmnpi'lre ro "re<1l

(U) Ubiquitous Computing (li) A t:ombinntion of widespread input ~tnd otU]>UC devic.e~ associmed with evel'}'di'l)' objects such rhat rhe ability ro make use of compmer capabilities is embedded in 1he envirl~muenr (rather than resnicred to spe­t: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 oli-et~ be exc:hRnged for "real" cuiTencies such as DoURrs or Em·os. 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 go~tls, such R$ ~me plAy balance, not \lsnnlly Rt­

u·ihmcd to rl:'nl world economie~.

{U) Virtual Envi·roJJmellt (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 discn~sion 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) Vishit~g (U) The crimiual practice of using soci::.l engineering and Voice over IP (\'oiP) to gain access to private personal and fiuau­cial iufi:n·mation li·out the public for dte pmvose of fiunncial reward.

(U) A common plmlorm thnr ~tllows for multiple use.-s to connect fot· t'tllertRinment or business, <~llowing e<~ch 11$<!'1" ro com­nmnicnte ot· collabomre with one another in real time over a network infmstrucrure. includes bod1 gnines <~nd non-game pl<~rfonns.

(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 ar(~ intended ro enable efficient imcrncrion nnwng people, cotHem, ;md data in support of collectively fostering new bus:iuesses, technology oiTeriug:s, and socinl ~rruc:­

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 en<~ble ;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 g<;~me, 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 ~tud other non-US muiouAls nmke a )j,,iug "f.,t·ming .. gold and 5ellillg it to westerners. Tlus pmctice is called realmouey tmde.

116

(U) E.ndnotes 1

2

3

4.

5

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7

8

9

10

11'

12

tU) lk•b SinK>n, ''Sex, Lit~!'. ;mtl \·icl~o G:unc~~ CBS News, 6 Augus1 200:~; R\'Bibtble ti,>m http:/ 1\\'\\'\,:cbsne,,·s.c•>ml src•ries/:?002/ I::?/ 16/60II/mnin5SS!.H3.slum~ inrerne'l, ac:ces.w.t.i =• Angus1 2008: for 2(l(H figm-es see Mnrrhew Yi, "111~' Got Gmnc/' Snn FI'Bndsco Chronidt', W Deo:cmber 2C:HH, nvnilable M hnp:/ '"""'~.ffgntr.-.com/cgi-binlnJ1ide . .:-gi?f=ichronide/nr­chive/20(14ll2/18/MNGUOAE:.~6ll.DTL. Iuremer.

(U) Blnkt: Sn<.m; ''Film E.'tecs Blame Halo3 for Poor ~·10\ic &lies," GnmeProj 6 Ocrc•~r 200i, nvnilnble nt hrrp:/ "''''':gmur.pa"O.com/ ~lt<Ws.dini'nl'fide_id= 14080H, imernr.r, accessed 5 AuS'lSr 200B.

(U) For '' clefinirk•n 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 Em•>tiv'~ web sire, help:/ h•morh:comlfNDS_3/intb1_3.html, intemt"t, nccc:,:ced 5 :\ugust

2008.

(U) ':o\.iuti~'Sis: NPD Hnrdwll re Salt."5 :?0(17, ·• Edge Online, 21.Jnnu:try 2008: r""'lilllblc- ut hrtp:/ "'""':ec:l~-ouline.com/tennu-es/iml'llyllis­npd-hMdwarc:-AAI~~oo7?pa!orc=~:o2C:O, in1eme1, ncces5(:d 5 August 200H.

(li) Memf!': "a ... ·ulmrnl ilf!'lll thnt is transmirr~d by re~tirion 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, Tit~ Selfish Gen~, {USA: Oxfiml Uuivt."rsity P~, 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 l~l'Ception: physic-al rmirs, personnl· irs l'lliOtionnl bond!, sexnalit}~ illld l~lie&. E.'l:teraml factors indude f:~milial nnd socinl bo1~ds, nnriounlism, cducari•ln, economic sJatus, :mel famco.

(U) Smnli>rcl Uuivcr11i1y. \<inual Human hiiC'raction LAb, m11ilable li'(>lll lur.p:/ /\·hil.~li1llfilrd.t"du/pubs/, inrc-met. ac:ct"ss«<5 Augu:~t 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 Duch­enemll:ll Puhlic:;;Jit.~ll~, Pl-llet Abo Rcsean:h C('nh~lj 200.2-2007, n\11ilnblt.' fmm Imp:// ww,,·2 .pare .com/ csl/mt'mben/nkohu/ publicl'llious. !nml, intemc:t, acc~ut."d 5 AuS'tsr 2008.

(UJ Grit·fcr~ ill't~ players char hn1'8ll.'l C>lher members of Hll onlinr com­munity iu a mnnner rhl'lt is inconsistC'iu ,,;th •he. renm of v.l'\ico:- c•f thc-~·stem.

1U) Thempcuti.: Spncc:s, 11tc·Daedalu~ Pt~jr.ct. 201.13-:!fiOG. a\-ailable

' from hrrp:/ h\'\'"'~n.id .. :.·«.cc•m/ cgi/l\·IT /nn-conunenrs.cgi?enr'1'­id=516, internet: accessed 5 Aug11st 2008.

(li'! Serio11s Gnmes Tnxonc•my Shnrtd, Se1·ious Gnmes Inifinti,~, 19 1;:bnmry 200fl, tw~tilnblt fi·cm1 hup:/ "'"'''~l!('J'iousgmn~::~.c•rg/indt:x2. hcml, iuiC'1111"J·. at:cl."s.~cd 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.

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{U) RoSH l\·likf!'nl Maa·J~·y andjennifer Sta"l''lll\'1'-Gnlles "11u:· Digital Dollhmtse: Content and Socinl Norm:~ iu the Simi' Onlinf>,"' Games ;md Culture: Ajonnm1 of lnteractiw Media .. 2. no. 4, (Octo~r 2007): :314-334, a\<tilable from Imp:// online.s.1~pub.rom. intemf!'t, accessed S Angtl$t 20~t

(U} Thomns Chf.'Sn~~ Swee-Hoon CJntnh, and Robert Hollimmn, "Virtual world experimentltliou: An r.xp1or<llory sruds'' 12 OeCf'm­ber :?007, :t\·'l\ilablP.ti·om http://,,..·Mv.noctingham.ac.uk/-Jizecou/ RePEc/pdf/2l.pdf, int~m~t. at:ce.ssed 5 Angusr 2008.

(Uj N. YcC",j.N Unih.·tl:'•>n, M. Urhanck, F. C:hnng, l'lnd D. ~·lcrg~•, ''Tlu.· Uul>enJ'l\bll~ Likcnc.-u of Ueing Digital: Thl!' l'c!t'Sistntc.·•~ o)f Not ... \'erbnl Socu•l Norms in Ouliu~ Virtunl En\oia·onna~uts," The .Joumf\1 of Cyberl'sychology aucl ~hm·ior, 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:/ "'""'''~gamf'Sforhealrh.cit-g/indf!'X:i. hunl1 inlemet, accessed 5 August 2008.

(U) Pr:accmnkt:a; 2006-2007, il\llilRbk- li·om hup://"""':pencemnker­gr•ml:'.coml. iufl'l'llet, ncc:e.s~cl 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, inu•mct,nccl'SSf'd 5 Augu111 2008; ''The Seducrion of :\chiC'\·emtnt in MMORPGs," 2004, l'l\-ail­nble fa"Om hnp://www.nickycc.cmn/ditcclalus/an:bin~/000780.php, intcmer: nccc!IS("d 5 August 2008.

(ti) ·'Thf!' Seduction of AchiC'\·emem in MMORPGs.." 200'!, availahle from hrtp:/ hm•w.nick~'\'t!'.com/ da~.><lnlus/lln:hi\'es/000780.php, inrc~a·­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.1gn­zine/6958782.stm, internet, nccf!'ssed 5 .o\ugusr 2008.

(U) "Free Pla);'' Rt-ason, .~ptil 2005, available f1T.m1 http:/ ""''\',J?.n­son.com/uc,,'S/show/29103.hnul, intc:l'tl~t, accessed 5 Augt.\St 2008.

(U) "f.1huic Cleansing (2002) is a CQIIfi'O\~t'Siftl 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 whir~ supremacist bnuds. In the ,game, the protagonist (the pL'l~rcr can choose "ther n wnhead or a K.Jans­num) J'\.1115 dtmugh a ghelto killing black Jx-c•ple nncl L·uinns, hdc>1'~ descending inll> n subway !'~'Stem 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 pbt~"f!'l' IIIIlS{

kill Sharon ro "in the g"Rmc .. , From Erlmit-. Cll~llnsing (video game), Wikipedin, April :?008, 1\\':Jilable from hrrp:/ /en.\\ikipedia.org/wiki/ Edmic._Clennsing_0/o28computer-.":la,une0/o291 intl'I'Jlet, ac:cf'Ssec:l 1 August 2008; ''GHm~"ll Ele'\·att" Hare to NI!'XI L.e\·el,'' Wit·e<l, :?0 Ft-bm­il11' 2002, m-ailnble rrom hrtp://""'"~''irt:c.l.com/culturc/lif..-!liYld news/2002/02150523. imern~t, nccessed 5 August 21XJ8.

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(Ul ''Inn• wngr·s Virtual \Var,~' ftl-jar.ct~l'»: 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 ~me designer Raph KOllrer's ''u•ws of Online World Design:'' ''No ntnrrcr wluu ~'>II <k•, plnyers \\ill dc•:.:.c;lc: ~-e~· lht'lmda, sratisrk: mrd ;tJ~otilhm in }~:till' WJ.ltirJ \ill C.lCJ>t~litm.•nf;Ui<lll," nnd ''N't~\'f!l' Jllll anr·

rhin~r on tht." dil."ut. The client j, in the hands (If the ~netm: N'e\-eor e\'('1' '."'et~forger rhi!!.'' R~aph Ko.srer's Websire, 1998-2008, n\';liinble from hup:/ h'w":mphkoster.com/gamiug/law!l.shtml, iniC'rner .• ;u:c~cl5 August :?008.

~UJJnmt·s \\'ngrwr t\n, The :\laL.ing of Scn•ncll..ilc: N(tl«:!~ rm~n thc N1:\\' \ Vorld, 2008.

tli) GBN Rq.llll'l. ''Ncores fa·um rhc Unclc:rgrouncl: A snapshm \~t"W of trt.'nds, cnpabiliri~s. nnd rhrt.'nts ~merging fi·om the uncle-a-ground ,.c•>n•)lny". 2005. Clc•bal Rusines.~ N<·twork: a member of the Moni­t<•t' Gmup. This repot1 \\'l'IS an nppeni'lix ro a lm-ger n:pot·r cc•mmis­sioned 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 pen:eh~d inunol'lll nnttu-e~ of got.ICI." C•r s~J'\ ices

(UI Hl.'lllll)re, Edwnrcl, ''Homr. J•orn Gh·es Industry thl" Blues'' iu Th~ 0~1'\~t: 16 De-cembl.'r 2007, n\·niJabiP. fi'f.lm lurp:/ '"'''w.guardilln. ~·co.ukh•·•wl(!/~(107/ dc·c./1 6/tilm.nsn, iuh.'t'ltt!l, ncO:t'S.~~t'd 7 Ocrobet· 2008.

{U.: C:nroline :\leek-Prieto, ':Just Agt" Plnying Aronnd? HO\•' St"r.ond L.ili.· .-\ids mad Abt•rs Child Poruogmphy," in No11h C:.twlinajoumal of Law nud Tedm(dc.'!,~~ I Junt· 200f:S. http:/ 1\,·w\,:ncjoh.org/mnrent/

\iew/139/107/J/6/, illlti'Jlll't, accessed 5 August2008.

iU).JomulumJ. Klin!;f~•; ··Wnrld of \Vurcrntl Erotic Guild Disband­mem Suggests VhTtml \\oriel~ May Become Vh'tnal Countries," in \·ir­mnll~· Blind, :!O.Juu 2007. Imp:/ /\irnmllyblind.cmn/2007 /09/20/ \\'01id of WHI'Cr:tft-guild-hnnning-itrtl"t11<11ional-btw/ , im~nwr, :u:c.es..~cd 5 Au~u~~ 2008.

(ti,l.Rrginn Lynn, •'Vi!1ltal Rnpr is Trnunmti{', bur is It n Cl'ime~··

in Wired, 4 M:ty 200i. lurp:/ /'""'':win:cl.r.om/cuhun~/liff!'st~ie/ comml.'llf:'ll'y/sexclrin•/2007 /05/St>xrhin~~-0504-, imernf!'t. ncct'SSc.-d 5 August 2003.

{li) Mcrk-P•i~tl), 2008.

i_U) Cdi~a l'f'~ta·•·t·, •·c(lnummirit-s of Plar: ·nat· Social CmiSimcrion of lclcntity in Per~iSII"UI. 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.t·dn/-qxarce:l!PearceJlubs/Pc:an·c.-SI'­Fimal.p«.ll: iuu:met, '"'~cessed 3 August 200ft

(U) Adam Rtmers. ''Gnmte-1· Stl'rs 80% Virtual world Penrrrntion by 20 II'' (25 Aptil 2(107). n\'~ilabl~ at http:/ heconctlife.t~uaers.com/ sroriell/2007/04/25/ ga a·rtter-sec."s-80-\ iriUlll-worid-pcnt•rratiotJ· by-2011/, inrernet, ncc~s.'lt"<15 August 2008.

!U) G111eHonJ< News St'nice, Rcligir.111 News: Video games go C:hristinn. Gillesbnrg.ct.'lm, 17 July 2008, :1\C'IiJ.,bl~ li-om http://www. gnlr.-shurg.com/lifest)1P.s/ religi(•a~/ :t544088:?35/Rdigion-News-Video­gi"'mes-!,.ro-Cin-isli;m, intt•mr.t, accc::..'l!d 5 Augu~t 2008.

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(Uj lm1pir!"d Ml':diil Eul!"rlllinmenl, 2003, H\'ailnhlc: from http://www. leftbt!'hiudgmn~.com/, iurerner, ncr.esst'tl 5 Augrtst 2008.

{u) :\nd}· Chalk, ''Hezboll.1h \·idP.Ogllme Sparks Prorest in Bah­t'»iu," Escapist l\-lagazinc, 27 August 200i, :wailnblc: fi·om Imp:// www.l".scapi~rnmgazinc.com/newshicw/76362, imc:rul.'t, ilcct·ssc:t:l5 August 2008.

(Li} Pl11za, AmaclN, ':·\u At·gmut~m for Rdigion in Vidc:o Games,'' .•\.:.,·[PED News, 30July 2008, a\'ailablc fromlltrp:/ /pla~~rm/wirc/ did:/2054795, int~met. ncce~l5 Angttst 200tl.

(U) C:Mby L~1m Grossman, ·'Fnithfid build a ~coud Lifll' for religion online," USA Today, 3 Aptil 2007.

(ti) Z. B. Simpson, "~lnssh-e Multi-Player Online Games (MMOGs), and \-1·\~ 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"l·ner, ncce*'d.Jnly :?008. 0 R01ti•m power. New playcrs ~houldu't be nlmt-powe,rfhl. A well functioning rconom~· ,,;JIIimit accc:ss to powedill irr.-ms. This h~lps balance mulripla~-eor gam~. 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;m•ftttl}: For eXHmple, il' tooLo;..of-lntde are f'XJ>ensi\'~. then plA}"P.t'S nilln~ 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-et·thm rorheir nctiuns. 0 Enccmrngtl' inrernctions. A wP.ll functioning econr:uny cnn mori\C'Ile pll'l~'f.'t'S to meet with t'ltCh orher for ti7J(Ir.- and work.

0 i\lori\11tt· n~rs. ·ntcn~ 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. rolt'-pln~ing. Some players will :rlways f'l~joy raking on ~1>f'rifir. emnomic rc•les such ns m'tisnn, mt'rchnnt. t•r traclf'r. A wdl functioning cc•>uomr j,.. t,llcinl

ro supporting these nnnu·alroles.

(.U) Aknrei-Lttct'nl, avail:,ble from hup:/ /wwwl.akntd­lttCt'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 Ubiquitou~ Computing, avli.ilnble nt http://"""\:studies-o~t"\1'ttjons. c:C•tn/e\'el')'\•'al'c/sampln/c~·t:l')'\\'are_inti'O.hlmf, 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=•· ~pl&l)'J>C!:::pdr, iutr.-met, acr.:e5$tl'cl 5 August ~008.

(Uj Disu·ibuted design and d.isrrihnred prcoduction 1-efe-r to fnnctious that are pnrceled out ton wide \'ariel)· of liJ>ecialisr!> \\'ho at-e spt·ead our geographicllll)'

(tij Tor Thonen, "Study: 21)12 gmne l"e\'s to hit 68.3 billion US~."

GmneSpor, 18June 2008, http:/ '"''"''.gam~.com/ pc I rpg/wolidol\mrcraft/ n~ws.html?sid=6192719, inter­net, nccessed 5 August !!008.

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!U) hnp://idnsh.r.trg/pi)>'"•·mnil/mr-ci/2007-S~ptember/OOOSiS. huul, intcmc.-t, OtCCI:'!'tc<:d;) :\ug1.1sl 2008.

(U) l~xdu(~lll:\ Jll;rllfii'Y 111;11-kt•t, itl'lll-hn:tt•cllir'!I.Jl.1rty ~fllfs of digitAl gn(l(lll (f<"ll' rXflluplt~ 1\ l:rplc.' Sr~wr iwarar upgntflell lll~ld dit·t•('rly w the Jlht>-er br N~lCcm! th(' gnmt' publillhE"r'): "H(Iw Uig is th~ RMT Mnrkt!'t!'," Virtunl E((;tUf.lll~' RP.~tll\:h No:twcn'k, rwnilnble 111 http:// \\"WW.\"il'lllfll·t~Ct'•IICtlll>~t'IJ'!;/bJo~/ho••·-bi,f!-is_tht!_l'lnf_IIJal'kel_:ury\\~

inrcmer! ncc:t.'lllled 5 August 2008.

I_Uj hup:/ /ouliu·~-"'~i-~~·mlpnhlic:/artide/SI1117519G7011465:~518· FR_svDHxRtxkvNrr•(iw'•1>0IIII-1•12g:_2008t1~29.1•rn•l?nrod=r'lls_

free%3C:br%20/%:JE, iutemer, accessed 5 Angusr 2008.

il.!) CPP200707(149680i4 Hc•ug Kl'n.g :\1<1' ·'Chin~ Online GRmers mnkiug M•'n~· \'in Online Ccmunoxliries~ 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 flll'lllt~l'll .. Play CC1111p11rer c~lnl('$ fcJI'

Cash~" 'li Seprt"mber 200ti, n\'nilable from Imp:/ /\nndoxnews. cc•m/ps1mea~fa·iendly_swry/0,356t)~21581i0:00.html, internet, nc­cc:>st·d 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 o•igiually issued by::. 11011-pmfit nrg;iniza­rion lonncd by a conrortimn of public transit comp:mies tlmt lw l'l'f~;~nnecl into a for-prCifir quAsi-fimmcinl instiruti(lll. The cnrr.l is now accepted lor "millliS rrm1Sc1ctious in Hong Kong. nnd ias u~ is expnnd­iu.g int('I"IJMit>IIIIIJy. [II :?007, ll'lHISIICciml \'(IJume in Q~fOJliiS \\':tS }I)

Milliou US Dc:ollnl's pea· <h•~: Mobile P~tym_ .. urs in A•ri:1, KJ'MO, 20t)i.

{U)Jinping- Xu, "(~·c:s·mucnl Rmubl~·s, 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:/ /\·irm;~l-econ~;~n~:org/blog/go\'em­ntt:m_nmablt•s_<'hin('!lt" _,·ir: intt·m~t, at:Ct'SSt'd 5 Angn!l 2008. ,

tUj 0,} Cm:: R p,,ttet'$.011, i\1. ThiebmL.,., \•ia"tunl &-nliry 30 Jnrerfac~ Sy$t~m f()l' Onm C:rt-nrion, Viewing :md Editing, in Rc.-f. T9ti l :~7: IU:s('arch nncl Technc))l.•gy .MnnHgc.-menl OffKe, Unh·crsicy of Illinois nt Lirbann..Ch:•mp;.~igu (UitiC), Ot-ct•mber 5, 199i.

ill; Bill Hibh:1rd, ''VisAd'', 11\'ail:tble frr.nn hup:/ /ww,~:ssec.,,oisc:. c:du/-hillh/,·il'<•d.hrml, intt'r·u~c, ncr.e5sr:d 5 Angtllll 2008 ..

!U) Bill Hibb;ll'd, ''\·in51Y', IWililablc AI llllp://''"'''':sset·.wiJo:. t•dn/ .... ·billh/,'i!Ocl.html. inh~mea, A•:ce~cl ~ Augtt$1 2008.

(U; Olci Dominiou Uni,-et'Si~:, ''Ciwe 50 Release 2.0'', :waimble at hrrp://mrw-unix.mcs.nnl.gO\·/-mickelso/CAVE2.0.hunl; ncc~l t'll. 5 Angusr :!I.IIJ8.

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iU) G~t•lfi-cy FtMlr.r :mdJuyiug Qin, "QQ: Chiwa·s Nr"· Coin of the Renlm?''. The Wall SrreetJoumnl, 30 M:tn:h 200i, amilnble at

lurp://online.wsj.com/public/artide/SBll7519670ll4·653518-FR_s,·DHxRtxkvNmGw"1>0llq_l•l2g_20080329.1tln•l?mcxl=n'l!_ fh·e%3Cba~lo,20/"!t,..'m, incemt'l, acces5ed 5 August 2008 ..

(lij Bctflz Rottenberg. Lili VC..hdonvia111 :mdJiaping Xu, "GO\·ermnent Rumbles, Chint"Se \liJ"tlml.i\·[t>n~· 1\-t:ntctll St:ible li:tJ' NO\•"': Virtual r._ ............... n ............ t."!' ............ qr.'\.r ........... n/\1\i' ....... :t .. t ... t .. --•····--1' .a.Ao•JIIV£1&.' .L"'-.,,._".,'-'1 ••'-·''' 1""1ftt ..,.., 41.&.t.•A'-&1 -v'-'' • ~·•••aau•A'- "' "''I"'•• ' ,;,"tual-ecQuom~:<•rg/blog/gO\'c.-nu~lent_run•bles_chin~l'-'il; imernet. ;u:c~!s~cl 5 Angusr 2008.

(1Jj Ac.:Cirdins- to th~ Entea1niument 5c:lftwnre AssociaJ·ion, computP.I' 11nd ,·ide.> gnme' wert" n 9.5 biUion US O~;~llm· b11siness in the United Stnws in 2007. The \'A.~t· majol'ity t>f thi~ mr.on«-y (tl.(){ billion US 0(11-larll) i~ spent <on ,-ideo games.

(U) rkijing Cyber Rt~rt:lltil)ll De\-clopnu.•ut Co•·p, "Vi1't11al wCJrlds Sp."tcr", 11\"llilable nt hup://••"'"':crd.go\:t~l.tt"n/crd_vw:~pace_ti(JI­

banksp.1ce.asp, internet, accessed 5 August 21)1)8 ..

(U) Ad,·:mced MMOG Cnn·ency Resenrch, "The Ris~ 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 V:umnru·~ Iurem~t C'.apa­bilities"_. <Wnil:tblc at http:/ /w''"''.\'l\Unamgo"emment.gO\:nl/Itut"'met. hunl, intes'llet, accessed 5 August 2008.

(li) DFGAmcs, ;m•ilable 11r IJUp:/ /dlgames.com/, inrt"met, accesst'd 5 August 2008.

(U) Lili Vc-hdon,·cs·ta, ·'Sw~en .Mc•\~s to T.1x In-Game Tmusactions", 16 April 2008. 11\~tillllllt"' at http://\il'lla:tl-ecrJn•>m~:oa-g/hlog/swc-dcn_ IIICI\'cs_ao_t:.x_in....gamc_tt; inrc:met, nccess.~d 5 Augusr ZtXl8.

(l'j f(,l'l'lln'l:nt la\\'8 llf"Cdl1yne A. Hiu:hcoc.k'li w ... b~r..:-, ii\-ajJahl~ frr..sn http://www.lwllabttSt".org/re:lt:.uJ"CI"IIIhm'll/inck~x.shtml, iutc::mt:a, ac-· r.essecl 5 August 2008:

(U) Aaron Ricadela, "Cong1-ess Take-s Aim ar Sp~"''~~re;' Busiue~­\\'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 Pli\'a~· 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., ·~-\Fact" 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.-liew•d l..ugt>st Hl'lck E\'er,'' MSNBC, 30 :\·Iardr 2007, availahle from hup:/ "''""': Jnsubc.msn.('om/id/178i 1485/, internet, accessed 5 Augta~t 2008.

(l') Cbina Internet Nen•-ork In.lormarion Centel' (.June2003): nmilable :It hrrp://,\W\•:r.nuic .. cn, intc-mer, accesSt'd 5 August 200tJ.

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tU1Ihid.

tU) hrrp:/ /w''"'':lm~J"ll~tworld!ulls.c:c•m (Ikcem~r 2007), imen1er, llc~·es~cd 5 Allb'1tsr 2008.

(U) 11li~ :•rillS up wmorc thnn I 00 pt•n:t:lll; tht:llc Me lhc stnli!ti~:s Jl''"'idt·d by CNNIC:, \\1tich is rhr mcost nutho1i1111iw: Ghint·se snun:r.

{U) C:him• Internet Ne-twork Information C...-uter (Deceml~r 201)7), nw•il:lbll" nr Jmp://''"''""··cnnic.cu, iutern..-r, accessed 5 Augusr 2008.

(ti; This adds up to mot·e than 100 percem; rb~ :~re rhe $tnrisdcs pro"iclcd hy CNNIC, which is rhe mostmuhc•titnti\'c Chinese ~ourcc.

. (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 pbm~ to enter •>nlinc gmw:s marker·;· in C:ltinHT­c:-dlNt."ws (21 April 2003), n\ctilable nr http:/ "'"'~"'':chilmtt:>chncws. c:com /2{K)8/0·l /21/6644-bftidu-brt:'\\ing-plnm-ro-t'nter-on1inc:--gnmes­mA•'ket/, intc.-mct, nCCt'H.~t!'d S August 2008.

(U) Tim Allison,':-\ Pt~th to W~stl!'m Online Games Succ~ss in Asin," in Gnmnsurrn (24june. 2008) .htrp:/ "'"'"':gnmnsmrn.com/\il"w/ ti.·ann,:/3i01/~•-parb_w_wesrrt·u_onliut."_games_.php, 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 lnformn­rizntiou Ltnding Group's c.~ntm~ms ou St~ugthetting Infonunrion 5«-nrity .EOons" [Zhc111gb;mf.., No. 27], nnd "Key Points of Natio11c11 lith Five-\i:nr Program lnfomtnri(lll Secmi•rTcc:hnol~">gical Devdc•p­mcnr Plan." Funcl<~ are chnnnelccl through f\\'O liuanciug \'C~hidl"S, the 8fi3 ancl9iS Programs.

iU) PRC S&.T: lith Fivc:-\'C11r Prr:»p·mn 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 Nov~mber 2007).

(U) '·ROK Dailr: Chinn r•t'CI\'f!s both P•·oliwblc, Perilous'' in · .JoongAng llbco (5 Mru· 2005). n\etilable at the O~n 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 p~,,Jitic:;•l f:.c:onomic S!ructut't•,'' Pnp~r suh1uitred w rhc: Sixrh Annual C:hinc!le lutr.-rn•~l Rt:scnrrh C:onff.'J·euc.e: "C:hinn nnd rhe Int~met: Myths nud Renlities," 13-HJune 2008, TI1e Oniwrsiry of Hong Kong. Hong Kong.

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(U; ''Chin:• Daily Ul&.~ine$~ Weekly: Chinese C:ompnnic:-s at a Gl:mt·c," m"nilable at Open Soun-e (!e-ruea· CPP'.?0080303968042 China Daily t.B11sim.•!.S n~ldy Supplementj in English 01)09 G~-IT 03 :M1•r 08.

i,U) ln~emet &osc:-nrch in China, cited in Peichi Chung, op. dt., nv11ilablc 111 hup:// ~ngli~h.iresenrch.c:t•tU.cn/htmll online _game I dl!'­tnil_news_id_87i7.Jmnl, illl~nu.•t, accessed 5 Augusr 2008.

~U) 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'''· ~-nmasun'lt.com/php-bin/ne,,'S_index.php?story=lt\875, im~rn~t.

:~ccessed 5 August 2(108.

il.i) Tim Allison,·~ Path to \\'l."st~rn Online G:un~ Succ~ in Asia."

(li) ''ROK Daily: China PrO\'l"S both Protitabl~. Petilous."

{lJ; ''Chin~ World rJf W:tt'Cmi't Plny·cl~ 11weatt•u ~'Cc•tt,'' in Gamns\ltl'n (6 Mat·ch 2006), 11\etilnble at http:/"'"""': g:un:=ISittra.c:om/php-biu/new~_index.php?story=M=, int~r­

net, acce~secl 5 August 2008.

(l.Jj Siam C:houdhu~~ ''i\.linc!Ark: M:u'kering and bmnd 11wm·c:uess lu <lttntct 150 mifiiou users w Emmpi;~,'' iu The l\{MO Gamer ( 11 Jun~ 2007)~ <Wailabl~ nt http://'''''"'· mmogamc:-r.com/06/111:?007/ minclm'k-nUlrk~ting-and­br•'nd-nwareness-to-atn'ftC'r-150-million-uM"rs-to-l'tlfmpiA, intl.'ntt!'l, acressed 5 August 2008.

(U) "The Chinn Angl~: Putting Tht." World of "'a•-cmft Back ln \\'odd of Warcraft," in Gmnasutro (2!1Augnsr 21107.1, a\'ail­Able ill http:/ ""'"':gnmni!Urt':'l.com/php-bin/news_index. php?stc•ry=15299, internet, accessecl5 Augusr 2008.

(li) Liu Changle is 1\'iclely l~li.l"\'t.-d 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 Eut~jung C:ha, ''ln China, Stcm Trcatm~nt 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: ultc:-rn~t, n~cl!'ssec:l

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cu·, Vii1U:ll Wcwlds Nc:w~ ''Uiug_~ng Virll.:cl world~ Ntll: \"·'ii1Uftl \\"OJ"lds in Chinn'' VinunJWol'ldNt-ws (10 Ocrobf.'r 200il. ~t' nlso Virlnlll Wt)Jid! Nt-ws ''Q.ukk Nmni:W!I'S: l~No ~1r HiPiHi's u~ers Ill'(' Imemn· 1 i•lnnl'' Vit'lnttl\\'c)l'ldN~ws !~~I ..July 2008;.

tU) ViJ·uml Wol'ld!l Nt,,·s "lltM ltn•·rners ,,·irh I-liPiHi lor Tt:'('hnology und lwcr(•pr.t·:cbilitr'' \•irm~tlWrnitlN•~'''!I (4 t:r.lmaAry 201'18}. Sc:t: al11o \•ia'lll:tl \\(•aids N•~Wf ''lHM &•cks lr.• lnacgt"Hit• UOueNl'l ,,;,It Exi.~ling Virtunl '•Y.II'Ids Pl:uli:ol'll\S:· \iirnmJWorlciN~ws (28.Jnnu:cry 2008).

(U) Chiun: l'LA Dc\'t'lr)plllt~ll of fJ<,iitit:OII Wtll'k Jnl<•rmationiz:clic)n: c·xc:c:I'J>' of X in Shidai Budui D:mg\\'t•i Gongzuo ~,, Shixi:m, [Mr.IClern :\·JjJirary Unit Pm1~· C:c•mmirrer. \\i:ll'k nnd Prnctices], Ou Guc•zheng: Zeug \ctttl:~i. ~nd Zh:mg Dongdong. eds. (Long Mnrc:h Press, 2003), ;l\-:cil11blc iu tr:cn~latiou ns CPP2007tl 11 tl3200 14.

(lii C:hinn: Disc::u!9!!ie;m ~·n focnl Poin111 of China·~ RMA C:PP'2008071656300 I O~partmenr of D~fetLIIC in English ll.i Jnl 03 ·n,is mmslaric•u i5 pt'CJVided by the Department of lleft'nSf"; A11idt• !elec:rt'd from 5-2008 "National O~fr:onse <•r "Guof.11~.'· wrinen b\· Li Pt'ngcong {STC:: 2621/i720/5115), and entillt'd ,;PI't'liminary. DiSt·tts!tiou •>II tlu: f.ix;cl Poitlls of Our A•·m\"~ Rt'\·ohuion in MiliJal'\· .~n:,irs.'' · ·

(U) PRC: Clu:ugclu .MR A\ia1ion Di,·ision Ack7111Ct"~ lnforruatiza­Jion Tr;msfonnntion. CPP'.20080ti(l6478009lkijing Kougjun Bao in C:hinf.'se (213 Aptil 2008), p. 2. [Repc>t1 by Zlm Q;:mli ;~nd special c:on·tspondem Hu Xiaoyu: ''Suiviug To Adti~'t' Gre:1test Wnr­\\;inning C11p:chilit.y- An Ey~-\-\~tnl"ll$ .-\cc:c•unl c.r EfforJS Made by A Chcngdu Miliun-y Rcgicm Air lvn.:r. J)i"isivn lo Push l'C.tt'\•"Ard Trnusti:•rm:uic•n Tc•w:ll'l:l lnfc•mlnliznrion"]. ·

.(UJ Gc:ollh·y A. J:Owlcr ancrju~iug Qin, ''QQ: Chiua'~ Nl'''' Cc)in uf r!}e Realm?'' in Th~ WaU Street Jom·nal (30 M:m:h 2(1(17).

(U} Sh:mn Rein, "Chinn's '•irrual, e-Coriunence Cunene);" in ~'-'k-ing Alpho (16.J:mnlll'y 200i). )

!U) \\'ttug Xiug Alld W1mg Shnn,;hnn, "Viramtl Mont"y Pc)!;Cs a Real Tht'eft~.:' in Chin;, Daily (:!li Dc.-ct':mhet' 2fJ06). St'l' nlc;o Gc:-ofli·cy 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 Decem~r 2006). ·

(U) lntt'l'llet Woticl Stnts: Asin (Decembe1· 200i), n\'ail:~ble from blip:/ "'"V\':Imet•uct\\'~1Iid~lfii!I.COIIIhc:lin.hun, inlcntcl, ;t~::c:c!lst:d 5 August 200a.

(U} El·.,nomist huellig1~nce Unit (Ianum~· 21!08), a\'ftilnble at Imp:// ''"''w.du.com/index.~o~sp?tf=O: inll"t'lll't, a('ceucd 5 August 2008.

~li) Brnnds and Gnming, NO\'t'mber 2(106.

(U) The·Associlll"t'd Press, ''South Korea's redm•>k•gy exports rist' 10.5 pet'Ct'lll in 2007'' (6Jmm:u·y 2008), ;n"'lil:cblc ar Imp:/ ,,,.w,dlu.com/ at'tide<>l np/2008/0 1 /tXi/bu$iness/AS-TEC~~Koren-Tech-E:!.1)()rts. php, intet·n~r, ncre.~~ed 5 Aug1.1sr 2008.

116

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!U) luremca World S11u~: Asia (Decc:mb~r 2007;, ft\'ailablc fi"tlm l111p://,,·w,v.lmeruel\\"OJ1dstnrs.c:.c•m/nsin.hnn, intenu~t. a('('essed :> August 2008.

(U}Ibid.

~U) '·ROK Sta!t'·Run TV Speciitl Pt'>gJ1Uu JI~rnxluc:cs ROK Army Cnmb:u Training Center'' (I Octobc~ 20IIli), a\'ailahk from the Oprn Sourc:t" Center KPP200610020490{12.

(U.J Wohn Dong-Hee. "Cyber World Draws Kon~an Groups.'' iujooug Ang Ilbc.l (21 Mn~· 2007), t't'primed in ·'ROK Daily: C:ybt'r \\'otid Dt'l'l\\'S Kort>an Groups,'' nmilnble fi·01u the Open Sonrct" CoC"mcr KPP'l00i0321971138.

iU) LeejctOn-Seung, "ROK:s \onhnp: S. Korea opens Vi11unl ~ali~~ !-fashion Clot.hing Store,~ 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 Offic..~ ImprO\'f.'S English Website~" A\'Oilable nr the Open S•)urce Center KPP'2007092897 1112.

(U) SeoJi-eun, "Economic& Educ:arir ... u Gc~s Virn.~:~I''Joong:\ng llbo (·~ Mnrch 2008), l't'pl'imed and trnuslnt~d in "ROK Daily: Econom­ir..s Educarion Goes Vi11ual ii1 ROK,'' ll\"ailablf' a1 the Opt·n S(ltJJ'C«" Cenrer KPP200P...03049ill62.

!ll) Kore:1 Time~, 27 March 2001:t

(ll) Chot:On Ilbo,-10 Oc1ober 2007; sP.e al~ Kort'a ·limes, !)jmu.• 2008.

(U)"Liudeu Lnb Partners with T-Enrertninmem ro Send Second Life to Kcm~a·· Virtu11! worlds Nt.'\\'S ( 18 OcwbM· 2007), m'llilahlP. m http:// ww,,:,·irlltalwc:ol'ldsnt"W~.com/21)(17/1 0/linden-lnb-pnrt.hunl, inlt"''m•t, acce!l!ed 5 Angusr 2008.

~U} "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: inl~l"llet, OIC·

cessed 5 August :?008.

(U) B11mclon \\~lll,ltl, "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 \IUbsetiption~ in South Ko1·ea, .ser. Chart prt.'pared by Bt·uce Str.-rlling \\'oodwck for MMOGCI·Lo\RT. COM (2008); a\"'lilnble nt http://www.uunogchnt•t.cc•m/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," Vi•·tulll wmlds News1 !:?July 2007, <mtilflble I'll llltp://ww,,:\'irtualwo)rld­sn~ws.com/!?007/0i /I.'Conomist-daim.html. imernec, ace:~ 5 August 2(108; '·Wnshingron.Post rJn Termr [sk) in 'iatual ,,·otid•,"' Virtual \\"Odds Ne"·s , 6 ·~bnmry 2008, n\"ailable 11t hup://""'"';

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\~l'llliiiW•:II'idSIIt'\\~t;l,tll1/200tJ/02/WHllhialgl•>l1·p0!11.hii1JI, illlt:l'111!1.

nccessed 5 Aug\t$t 2008: n l'tferenc~ t<• Robtrr O'Hnrmw,.Jr., ''Spies' JJnul\"gtT.IUDd Turns Virlunl."' Wnshington Posr, G F~bnmry 2001.1, "''ililnblc- ;u hup:/ '""'''~'•-a5hiugtonpo~t.comh,v-dyn/conl('nt/ nrlid<:'/2008/02/05/Ak200802051)3144.1uml?snb=AR, imr.nu•t, nccc-~f:'d 5 Aug1.ur 2008.

(U] S<!t•, Clnis \1•11auc~, ''U$ sc~t."k~ lt•n·coail't~ iu \Ve,>J., \\'Oriel:~,'' 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 Vit·runl "''~rids D:11a :\n:tlysis,'' \'irttml worltls Nt·ws \\'ch~itl", 2 ~·lny 2Uil8, i\\'llil;abl•~ 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,'' \\~n.·d, 22 Febr~u.ry 2008, m-ail••hle at hetp:/ /blog. wired.com/2 7bsrrok~6/2003/02/ n:uions-spies-\duml, imernet. :ac­('~ssed 5 August 2003, citing Office- of 1he Dia·ecror of Nntion:.l Intel­ligeuc: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:pc•n_201.1fi.('DF, im~mtt, m:r.~~l5 Augu:.r !?008.

(U) For a go(ttl 0\'C"il'w nf ht•w ll~t·n)Jist grl)ups II•>W:I(Iays ""l>loit 1.he lmc•·net, set• Gnbrid \\'rimauu, Tcn'(•J' o11the lmc-111t'l: The Nc~,,· Arellc'l, and New Ch:lllenges (Washingtc)n, DC: United Srnres Institute c>l' Penr.c, 2006); nnd Philip licib, c.'d., 'l~mlrism and lhC' ln1r-me1 (New \'C:•rk: l'ulgmw, fi>rthcQming); nndJialtut Qnn .:1 11l, ·~·\na~'Zing tesTe••· rsic] ~·amp11igns on the lnlemer. Tr.chnicnl sophilstication, content lichne$S, and Wt.-b inter:.cth'i~~·· Hnnmn-Compnt~r Studit.-sr)5 (2007), pp. 71-li4. Forlslamist andjihadi:~t ~"'Pioitnrio11 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: Compm~a·-Mec:linted C:onmmni­·~ntic·•ll :•nd Cylm•· ltlmnk 1-::mimnnienlll (C'.nrrliiT: Uui\'c:l'sity of Wulc5, 2(1{12): nnd the a't't.·eut study ~·.Jmne~ 8J"nndon, Virtual Cnliphme: blnmk ExtJ't'IIUSts nnr.l th<:'i1· Websites (London: Centre for Social c:.~·lu:si<nl, 21108). \\'hkh is fi)C:IISC"(I 011 the llillulliCIII inth(' UK.

!li} ''Tefi'OJism JU.senrch Roundup: Not Much in ~·oru:l Liff:','' Virntnl ,,·oriels News. 3 Ma~· 2000, R\"ailc'lble nr http:/ "''"'',\'irtunl­'''QJidsJICWli.C'Otlt/2008/05/terrori.<~m-rf:'!it!U.hllttl: internet, ~cc:e!l!ll.'d 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 mimK.~ !'teal-life. t~rrolism:·· Lin~u L1bs CI~C> Philip Rt~clnlc~ ~irl rh:tr '"[w]e ha\'t' n<.'\'t"'' sc•~u :my C\idenc:~ thnl I he•·.- is Hny linch acai\ir~· gc:>ing on.·· Citro in Eric Rf:'lliCJ'l, "Rc•St"­dnlf!' disclc)ses FJJI grid1ng probe. to Congress." Sewnd Life l'\ews C:i.'ntet I April 2008, n\'nil:~ble nr http:/ /~ondlife.t't'uters.cCtm/ 8r olic-li/2008/0oJ /0 1/ mst:rlall"-di!ldo'•~s.lhi-iticlittg-pmbt'-lfi·C:OIIl,'l'C5.'1, iJiremcr, :u:cc•s.<led 5 Angns1 2008.

(l1) See ''Fighting 'the!' Fron~;· NC!>''' World Nc•tt$: 15Jnunnry 2007: il\'nilllble :u hup:/IJt\•'ll.blc.gs.com/nwn/2007 /0 l/slongc!rjhnn_h. htanl1 intf:'t'JJC.•t, ac~~ssed 5 August 2008: for this CJUOte, ft$ "'eU ns for other information in the pnmgrnph. Cf. al~.Jacqui Cheng, "Politi-c:al group's in-gamt" i,..cJencc- sp;u:ks \it1nftl war:., Ars Tc:chnkn. I i.Janllnry 2(K17, 11\':lilnhk~ at hup:/ hu-slr.chnic:~.com/new~.nrs/ posJ/20070 I I i-8643.huul: nncl Olh·er Burkem:m, ·'Explcw:ling pi~rs ·and \'llll~-s of gunfire ns Le Pen opens HQ iu Vinunl world.'' (;unrd~ im~ [l..ondon]. 20Jnnllarr 2007. According to this ccmtmJmicJI.C, ,,·hid• w~t~ nc-mally is.~ncd •>n 5 Der.cmber 2U06 by the Fl't•nt Nntiou.'ll CW. ln.Jem~sst (~Ji: rhe yomh ,,;ng c>f cl1e FN: tbt purpose of open­ing rhi~ FN CJnicr i11 SI.. \\1•s to "pmmo1~ the cnndiclto~· of je11u-M:uie [.t: l'cu iu the ~007 pl'r!'llidcntiid r.olecrions ... t:•)nsritutc: ft permlllll'lll

•·eprcsemarion of tb~ 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 li.n-M~uea.,; ... [nnd] prCimote the Jll"t'SC'JK"C of Fn~nch nnd F11~nda-spe:•king org:111izalions 1111d C'Ompanit."S in Virtual worlds. which hii\'C' up rill now been dominnted ~· rhe Anglo-S~:xCIIlS ... See •he French rr.~'t in ·~-\norher SL First? Frr.nch E.'\:11-eme Righr Political Pany Opens Office in Set:(IJid tile," St~c:c.encll..ife Hernld. 9 Dcccm­i)('J' 2006, :wailable nr \\Ww.~coudlilehernlcl.cclm/slh/20(N)/ 112/ illlOiher_sl_firs.hnnl, internet~ ilccessed 5 August 2008. Accol'tliug to u bl<•:;ge•· nnmcd An•)nymous f.m't•pccn, howM·cr, the FN Wll$ nor the

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finer. French political p:n1y ro r.nter SL, sin.:~ thl" ~nri•ic~•l J..iulr.Derm­"ille Pa~jcoct, the HQ of il cnric:arurecl \'er-sion of Sigol~ne Ro~11l, 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,'' "ll•e :\nssrnlian. I i July 200ti, fi\"Rilnbltt M hup:/ "''\-'•:tlu.•anstmlinn.ne\,'!l.com.au/ story/0.2519i,22161037-287S7,00.html, inlernet1 ac~s.~d 2:? S~ptem~r 2008. Cf. nlso Hsindmn Chen, Swn TI1onu .• nnd T . .J. Fu, ''C:ybet· E:,.tremism iu Wt~h 2.0: r\n Explomto•·y Study of lntc~I1Jit­tionni.Jibndist Gtuups," chapter for IEEE lntermuional Conference­on lmeUigenc:e nnd Set:urity Inform~rics, fotthcQining.

(U) Ciom1ny nnd Taht.-1; "Virtualjihnd hits Stcoud Life \Vd;,sire.'' One- of those "pro\"CCCRti\'e m1mes" thar wns il,;tuaiJ~: listrd ns such w:ts ''1rhabi007" !"Te,>t·rorist 01)7''), the moniker of n mnjor aJ.(~'ida-linkccl jih:\di~ opcrati\'C in Britain. Howe\'C'Jj in a subsequtnt intel'\iew Gunamtn • ., cll,imeclthnt his app.1rcnt suggestion lhal "lrlmbi007'' was also c•pl"t'llring in the. \·irtual "'~ll·ld, o•· tlml somt'l>llt' else with thar same monikf:'r wa~ doing so, wa.s che R"Sulr of iln·errur by The Time,. F01· skeprit:ism abom Gunarnmn 's daims nbour jihnc:lists opemring· in SL, sc~ \ \:agnerjRlllt'll Au, "Jihad and Second Life," New \\c•rld Not~oos, i :\ugusl 2007, n\-ailable n1l111p:/ /ll\\1J.blogs.com1JJ\,1t/200i /O.'J/ sr.cond.Jife-tmd.html, inrenaet, accessed 22 Septe1i1~r 21Xl8.

!U) DHS, Ollie(' of Intdligence and Anal~~is. \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 E~l>loitiltion in Vinunl worlds: .-\11 (:h-et,·ie,,; Office of the Direcror of NntionnllmeUiv.nce report, 29 NO\-eml~a· 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 gc•onr~ Iilii (p. 3} CO\TJ"t conuuunic;uiou, training/ rchearsRI, money tmnsfcr/l:nmdering. inlormntic•n wm1inT, :md Deninl of ~J'\ice (DOSj Att~cks ns specific acri,-iries in which tenorim could engage. Note, howC'\-er: rhnr np.'lrt ti·c•m the ll!le of •·,;nual p<"Ople'' (p. 4/, i.e., 11\"Hiars-includ­iug ''hors''-anc•st of the nh0\'1:'-Iist~o-d ncti\'itics nre idr.mic:nl to rhose rhnr rcora·oa·ists nb'l!'l'ldy e-ngage in tltl the lmemer. In that s\"nse, Web :?.0 offers them rhe ~mne l)l."ICS CJf OJ>pOrtu­niries a-3 We-b 1.0.

iU) For morr alarmist p•·eclicrions, w.e D:m Verton, Black lc~: The Imisible Th~Tnt of Cyher-Tcrro1i$m (New \'Ork: ~·kGr••w Hill, 200:lj.

!.liJ Weimann. Tt'J1Uronlhc lnlc.-t'llcl, pp. ~9-110 (ontlu~ "communi­cnth-e uses" Qf rhe lnrentet), 49 (quore).

(U} Ibid, pp. 111-4~. 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 al-~1'idn, 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 ~nse sn1d~; see Me•·~·nn Lim, blnmi( Rndicnlism nnd :\mi-Amcrknnism in Indonesia: The Rolr. of 1he Itnct·nct (Wnshinglon, DC: East-Wcosl C:clllcJ: 2005).

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(U) Sc:c·, Gordon C:r)I'CI"fl, ;~\ w~b \\ise len-or (sic) ll(~lwork,'' nne News, G Ocrcrber 2004, n\·ail.,ble 111 lmp://news.bbc.co.uk/2/hi/ in_deprh/3i16908.sun. imemer, ncr.P.!~Se<i :22 S.:.premlxr :?008. This is \\'lr\'lht r.irlc (rf n r~·cl."nl. book ll\' ~·lichAcl 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.r­n.ity (New 'f.wk: C1unb1idgr Unh't.'I'Sit)~ 2007), i~ smnewhntmislencling -tim r:.rlf.•l>lcl,iihncli:;t~ hnn: c;mbr"Acr:o<llmc~xplidllr nn•l irrc:d~mnhlr nmi-rllr)(lr:r•ui~r idc:olc:>g)~ b111 th~'}' nre lltil II~'Ct'-":t.;Jy ''llllllli'Jc'lc•m.'~ Tuclfoed, mnuy of them fir <tuhe c;c)IUfc,n;~bly imo thP. mode•·n wo1id.

(t)} lbicl, p. ;)(), AIU.I PI)· 14-7-il. Cf..Jr.r~hltlc Gret'll~ ''The My1h r)f

C:~·bc!I'IC!I'I'I.•Ii~m,·: Wmchinglt.lll ~ltilllhls Ntl\'c:mhc!l' 2C:lfl2, 11\'Hib,hlc~ ;u hup://ww\\:\\'AShiugrcmmonthl):com/fenru~s/200 l/0211.gret;>n. hun!, inlt!'a·ner. nccesst'd 22 Septembet· 2008.

(U) s~e lnt~grared Thrent .-\sst'ssm~nr Centre [C:nnnd:~l, C:yb~r­Tet't"Ori$m: T~t'l'r.•rist 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· skeptidllmc.-xpn·s~cd byJnnn C:C:.lr., ·'Osmun bin l..ttclc:n'll 'Sc-.:-mad Lift~,"' S11lrlU1 25 fi:lmtary 2CIOH, a'-nilable ;u hup:/ "'"'"':s.11on.com/opinion/fenru~/2000/02/25/ a\·nrnrs. iurernet. ncceSst'd 5 August 2008.

1U} Sec·, Rodc:rickJou~ ·'Mera·li·l'ror: ll1e Pot~tuinl Use of M~'IOR­PCti by Tet't'()li~ts:'' Cottnlet·tea·rc•rism Blog, I Mm-ch !?007, n\'ailnble ar l111p: // •:C•tmh:rtc:-cTmismhlo.g.c•t-g/ZOO i /(13/metAI<'n'•Jr _the_J)Oieutial_ tl!Cc~<•.php, iJllt"t'UCI, n•:cl'S.~r."d 5 :\u~mt 2008: t'esponses rc•Joue$' 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:// ('CIIIIllt't1c:I'I"OiilllllbJ(tg~nrg/:_)('JQ7/1)3/p111't_ii_of_ntetlllCITfJl'_lhe_pt)IC.

php, intt•m•~•. ac:ct•ssed 5 Augusr 2008. Fo1· n conl~'t'ncc: <•rganized by rhnr samt' hlcog sirr.o Crll {his s:-cme tho:ine, set: Andrew Cochrane, "'E,·ent Trnnsc1ipr and 'Relnt~ Links: '.M~r:.-Ten'Or: Ten-orism and the Virtu­nl world,"' Ccauntr.nen·otism Blog, 7 ~Ias-ch 2008, nvaihcblt' at hnp:// l"Ollntertetroristnblog.org/2008/03/l'\"t'nt_rrnn~ripr_nttd_J"l'lnrt'd_l.

php, illlt'l'llt'.f, nccessec15 Angusr 2008. See funhr-r.Ja)n~ and Mkhnr-1 Sdu-agl·, ':Jihacliner.~,·· C•.•nlltc:c·~c:rmtism Bios, 17 Dc-rcmhcr 200i, "''nihthlc: :u bttp://cmnuenenorismblog.os·g/2007/1 !Yjihndinets.php, inrt'a·ner, nccessed 5 .-\ugusr 2008: madjont's. "\·inu.1l Assnssinmion as n C:onnrene•·rorism Tool,., C:ounteneaTOrism Blog, 28 :Mny 2008, a\·nilablt• at http://coutJrerrcrmti~mblog.org/2008/05/,it·tual_assa~ i!in:.fioau'ls_n_r:ou.php, imenu::i, ncce~scd 5 :\ugu~t 2008.

{U.l Hsindttlll Chen, S\'en Thom~ '[j. Fn, Cyht'r Exm:mism in \\'t"b 2.0: Au E,.-plorarorr Study of luhTnati(•m•IJihncli.~r GtY.•np~ (lEEE IurernMic•n:-cl Conference ccnlnrelligence :111d Secmity lnloa·mnrics, fm1hcoming, 2(11)8), n\-ail;~ble nr http://ni.ntizonn.eduh-esent'Ch/ lt"tTI>t'/puhlic:arions/ISI20tlr.-S\'1.:iJ-WER2.p<lt: intc:t'llt"t1 11C:l'l.'liSC:d 5 AuguM 200a.

(ti) Ibid.

!U) Virtu:cl E11Wnin, 160, 140, 32 {PG;--E.\IOniiln EmbR~~1· c•n Se-cond Lif~.

. !UI Fuiuchun Chcm, 8\'P.Il Thoms, T.J. Fu. Cylxr .E."CtrenU5m in \\~b 2.0: An E.'lllf)l'fiiOI')' Stud>· or IIIIC1'11Rticut.11Jilucdi•t C:IT.111p5 (IEEE lut<'t'nllliouHI C:(tiJfcm:ncc on huc:llig~llce and Secmitr lnlormmics, f(rrthCclllling, 2008)1 11\'ililable I'll http://ai.mizona.~u/rese:n'l:'b/ rc-rror/publicnrions/1Sl2008-~,·t'n-WEB2.pclf. imerner. :ICC'C'SSed 5 :\ugu!Ot 21'108.

(l.i,l.J:~son A\'et·~~ "Decoding rlce Wol'ld .:. of Warcmfr,"' Tipping Point, 28.Jnnt!' 200i, a\-ailabl~ nr http://d,·lnbs.tippingpoiut.com/ blog/200i /06/:!8/ decocling-the-"'C'Iid-of-\\71rcraft, imerner, accCl!St.'li 5 August 200ll.

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(U) Viru:cnr Poupard, "\\hnmn J>n:rsritlllt"ll Ht•rsdf on Worlt.l of Wnn:mfr," Associnted Conrent. 10 .-\pri12007, a\'ililable at Imp:// "'''"':nssodaredconrent .com/nnkl~/21 0451/womnn_pi'O$rillltt'5_h~r­s .. u:_through_criligslist.hnnl, intemt-t, ncc:(.'S,;ed 22 &ptt"lllber 2008.

(lJ) tbid. For n scnnnecl cot~· of dtr.o CL nd. sc:-e "RL Pt'Ostirution lor 5,000 gold in WORLD OF WARCRAFT.'' Chm'ilct~r· Pltmc:l Ji·•nnn. 15 t\pril 2007, il\'Hilable:- nrlmp://dmJTICI~Illlancl.t'om/J(,nmJ!I/rl- .

prostirmion-r 12:?.brml?s=73d9.J 7albee313fd39:>3955fl80a l7!?&nmp;s =73d94 7;~0)ee313fd39539515tm0a I i2&amp;t= 1221 intl"l1tt!'t, accessed 22 Septcmber 2008.

(U) C:BS S, ''' \tcman Attl.'mprs to Kidnap [.,.. \·irtual Boyti·i~aKI, .. 22 August 2008, :1\'Hilable at lmp://cbs3.com/Jocal/ltimb~ti}~jemignn. scc:ct~cd.2.801089.hunl, intt'mer, :u:ccurd 5 August 2008.

152 (U) htlp://ww\"!l<.'dimint'.com, in•~·mer, :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, :.c­c: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_amsrea·dnm_An_inrenic...,,·_l.php, i111emc:r, nccessed 22 September 201)8.

(UJ Em'llNI Ca\111li, .. l\Jlice Rc:fi•~· to Aic.l in Vittunl 'lltdi Case:,'' Wired, .J. Febnmry 2008. il\-nilnble at lmp://blog.\,il't.'d.com/ gamt!'s/2008/02/police-r-ef~-r.hunl, im~mer, acres~ed :?2 Sep{em­lx-•· 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 htrp://blo~ wi~cl.com/ gmnt"S/2008/0 1/japallnc-t«n-~html, iuternel. :u:cc!sed 22 St1Jleml)('r 2008.

157

158

(U) "Ecc•uomic Srntisrics,'' Second Lift-, I Augu11t :l008, 11\'ililable al )Uip;//~'CCIIKffifi'.COIII/Whatis/t'COJlOIU)'_~Iill!.php, iniC'I'II~I, iiCC~l"fi

I August 2008.

·(li} Sc:c:rmcl Lift" Upcbtlcd, Ginko Fium~ci;cl has stoppt>d alltmd-ini: 9 August 20071 :1\"ailable fl'l)m 1\ttp://""'"':secondlift'upcbJte. com/2007/08/ ginkl)-fiuancial-hns-sropped-nll-trndiug/, iuternt~r, nccessc:d ;) Augusr 2008; Daniel Tenlimau, CN'c1 News, Rmtks Banned in "Second Life,'' B.Jnnunry ZOOS, R\'ililnble from hrrp://news.cnec. com/\\'eb\\71~/?k~'\rord=Second+Life, 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 PoliC)~" Second Life, 25.July 200i, 8\'~tilnblt~ ar http://blog.S('("oncRili.-.com/200i /07/25/wagctiug-in­

SI."COnd-life-new-policr/, imernet, accessed 22 Sept~ml:~ea· 2008.

162 {U:: "Econ•>lllk St!tlistic's: Graph,'' Second Life, ;·wailnblc: at http:// SO"Condlift.-.r.om/whllt~/cccononl)'·grAphs.php. inteJ'Jtet, nccc-ssed 22 $('ptc-ml;,e,· 2008.

163 . tU~ Richard Bnnle, Designing Vi11tml worlds (New Riders Pub., 2tXI3).

164

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·167

168

169

170

171

172

173

(Ul Miclmd Mill·~•; A Hisl\11'\' ,,f Hc•JJJC Vidcc• C:anu· G•:•nso)lt.:s. In· it.•t:mn: :\pt: I, 2005, m·Hilal~l(: ~~ lmp://""'"'~infi)l'mit.comhl;,ic:l~/ artide.II$J)X?p=3ifll41, iuteml!'l, 11ccc-s:~ed 5 August 2001l.

(tiJ Edwnrd C:asu·onrJw•, ''Vinunl worlds: A Fim-Hnnd :\r.couur of 1\Jnrk\"t nnd S<•cie1y ~lu the CybeJ'ilm Frcmtier, .. Ce-ute1· fc•t' Econcomic Sll!(lic·!t HIJC.I Jfi) Jmuimll: lc:.r F.coJJomi·~ Rcs<·m-ch (D•~t'CJUber 2001).

(U) '•\\;,rid of Wna-crnn Rc-nch'.'s 10 MiUic111 Snbscribe1-s," 22.Jnn~ary 2000, avRilablt• fmm \11tp:/ "''\\'l~blizi!ill'd.c:om/n~/p~~/1180 122. hnnl, iutt•J'IIf~l, ac:c•·ss('c.l 5 AuguSI 2008.

(U; ''Vit1tml ,,·orld Entmpi11 lini,·ct~ Issues FiJ'lit· E\'t.'J' Vit'tUHI B:mk­iug Lic~ulk"s fc•r 5•1001000,"' Mlll'ket \\:"'u·c-, t1 ~Jny 200i, a\-:U\nble frCtnt http://w""•:tnnrke"'i~.•:cma/press-release/Entrt>pin-lini­''Ct'$1;-7S:i~l6.1uml. iuremet, ncr.cm:d 5 Angusr ~01.18.

(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 tL~ within th(' militAry and go\'emment sccrors, Rnd thr \1rtual Army Expenc•nt·e.

(li.l Gaming and Virmnl wc11ids han· n combinntion of globnl nud mo­bile: Rcc:e$li to:o incli\idtwl tf"XI chnt, gronp tt~.xr dtnl, in:sumr mf.'s..•agin~. indi\idu:.l and grr:•up \'Oil'C: •.'C•IIIIIIIJJJic~llionll, file t.r11usfcr. nlimw.sand network buddy li:o~rs, p1·esence nc•tificntion, n c•>uunon \irtunlmc-t.>ring pla•:e, rmd linkagl!' to <•ther mrdin (Hlch ns wtb sites .• tdephony net­wr:n'ks. n1· SIJ~illlliug mc!(liai.

~U).J;me Pinckm,:l. ''ls World of Wnrcmft the New Golf?.'' Fc·b. 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 Con\'cr~cnce of Virtual \WJtid~ a11d Soci11l N~twr:orking Siu~~. 2008, A\'lliluhl<" lh•m Imp:/"'"''\'~ ,;nttnletl\'ircmmenrs.info/C'nti.'COJ'\'/!I(I('i;•l, inrerner, nccesscd 5 Au~tllt ~- ~ . . {tJ) Hrynn Gnl'din·~r. ;~u1mpt.ysici$t Rt'plrt~:('ll Superc•>mput~··· ,,;,h Eight Plnystntion 3s," Wire<~ I i October 2007, n\';lilnblc- from http:// ""'"': "i~.com/tl."chbiz/it/ news/2007/1 0/ ps3_supet'Computet:. intc:rnct, :IC'Ct.-:~Sc~d S AugltSt 2fiOR.

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(Uj Philip Rose-dnh:, ''Online Virtual world:~: t\pplicatifms :mel Avntars in n USC'r-G\"net'llred Medium/' H~ilring before rhe HouSC" Subconunittee on Telecommunicmions and the Imem~r, (\Vashiu~;­ron, DC, 4 Aptil 2008). Trall:if.'Jipt 11\oilablr frc1111 http://ene,.gycom­nu.·rcl".houSt".go\'ll'llll<'_mtgs/IIO-ri-hrg.ll40108.Virrunl\\"oJid<t.shtml, in remer; ncc~l 5 August 2008.

(U} M11scthin:r ~II)Ji, "On the Uncanny \:'allc.~~" Proc~dings of the Humanoids-2005 workshop: Vie"" of the liucauny \'nlley {5 Decem­l~t·2f.l(t.;;.

!U) ~it1 inducks China, M•J'en, Australia, Ne"' Zenland .• Singllpor~, Thailand, Mnlaysi.'l. nucl the ~gions of Tniwan, Hong Kong, and ~Jncau.

CU) Nid' \t-c, ''World of Wm·cl'e~ft Gl'nd~r U.mdiug,'' llu: Dned.1lus Project: Thr.- l'syd1c•lc>~·y of MMORPGs (2005}, n,·ailnble fi"Om http://""'"'':nicL·yee.com/dat"dalns/nr­<'hiw.s/001369.php, iuterner, accc-ssed 5 August 2008.

(U) Dmini Williams, :Nick Ycoe, And Scott C~tpl~tu. '"\Vho plays, hcow much, nnd why? A behll'ioml pia~~·· census of a Virtu~tl wcorld" prepnblicnlion drnft pnper (20081.

179 (U) Ibid.

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(U) ·:-\ctive ttset·s'' 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$hi, \·entul"e' Bent, <~~A: Undeu lab CEO !\lnaic Kingdon on s~oncl Life's latest E,·olmion, 18 &,,temher 2008, "'·nilAble·fi·om http://\'enturebe-nl. com/2008/09/18/ CJil-linclen-lab-cco-m~trk-kingc.l•)ll-ou-~~ec­ond-life$-):lle~t-e\'Oiutiou/, intem~t, ncc:~sed j Augtut :?Q08.

{U) Sueh .~111risrics cnn b,t.- mi:deadiug, lls " frw incli\'idu~tlll cnn account for a disproporriountely large number c•f hours.

(UJ Lost in Bannna,-erse, Sc-cond Life Usnge- D~mograph­ic!o, 7 ~·L1r 2008, :wnilnble- from http://""'"d:mmmn,~rsc.". ce>nJ/2000/03/0i /scc.VJJcl-lifc-usage-de~nographicll/, huerner accessed 5 August 2008.

(U) Hnbbo Rraches JOO million registered n\711111~ wotidwide, 26 M11y 2008, hup:/ '""'"':sulake.com/pn~ss/ relt!'nses/2008-06-25-1 OO_million_Habbos.html, i.nt~ruet, nccc-ssed 5 Augtlllt 2008.

(U) Wagnerjamt!'s Au, "World of Warcr.•ft No LcJilget· \Vorld's Big­g~sr..MMor· Gigaom, 6 i\1ny 200<3, a\·ailable from lmp://gigaom. ~·om/201)8/0G/26/warr.raft-nc ... 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:// ""~w .. mlakl.'.com/ press/t't'lcast's/2008.06-25-1 00 _mil­littu_Hnbl~lnml, intemet, 11~-cessed 5 Augn~t 2008.

{UJ ·'\•irtnnl \YodeLs 2003 • Mattei Keynote: Making il S:~f~ 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, OlCCf.'!ls~d 5 August 2008.

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(\i,i "\\t·hkim:, dub pcm.&JUin ;unon!o: tQp 10 2007 fiiSif'.St grt•\,·ing G(IC"•~Ie ~Mch cenns..'' 4 ~cember 2007, a\':lilnble 'i-om htt.p:/ /\,,~,,: 'irtunh,·orldsntws.c<•Ju/2007/12/wel)kim:-<lub-~.htiid. intemet. "'~c;-,~ss~~cl ;) Angu~t· 20118; Wchkiuz «••· P:ucnt~ :t\'nilnbl••lrt:.m hup:// www.w•:hkitlz.c:ons/u~_c&tll'lsc·l-l'-"'''·'lltll.hrn,J, int,:rnc:t, !IC:C•:M.<w.d 5 August 20013; N'ehn Tiwnli .. CNet News, I fell in lo)\\" \\ith n cybt>J' nU~· c::H, 10 M»y 2007, available li·om http:/ /ucws.l·nr.-t.l'Oili/Wehkinz-1-fcll-in-lc)\'t'-with-a-cybl."l'·;clh:y<HI/'1.100-1026_3-GI82~~34.huitl,

imt-mer, ncc..-s.'lt'd 5 August 2003.

(.U) Vim111l worlds News, Vimull \\'OI'Ids 2008 - ;\lnr.td Kr.pwte: ;\·fak­ing it S11fr. /tnll ~lo\'ing to Suhscri)Jtion, 3 ;\p•il2008: ~wnilablr frmn http://\\'\\'\\~virtitnh,'Orlclsnews.cr_.m/Z008/04-/,·il'tnnl-'''Otids.hun.l,

illlt-rnt't, nccess~d 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:// mf."dinSC'tWr.prw~b. C:(•lll/ pdli lmmll):ld/1 032514/6/ ))l:pdr, inremt•r, ll('CI"s:!('d 5 r\ugust 2008; D•::m.T:•kltlmshi, Gni::. Online rai.~c~ Sll million to fimuJC:t• m:ts~irc-ly mulripl:.yt-r onlint' gnm..-, I ·~July 2tX18n,·t~ilnbl~ from hrrp:/ /\·~nrm~bent.com/2008/07/14/ gain-olllint--l'nis~-Il-million­t•~-fi;t:mr.~-llllliSi\'l!'ly-nmh.iplny~t·-ortlist<'·gllmc/, 'im..-ml!t, ncct·~St.·cl 5 :\ugu~ 2(108; G~itwnHnc:.com US Den"l-'raphic.'l, n\·nilnblt' IH htrp:// \\"\,,,·.qmnucnst .~·om/ g:.inonlint'.com, internet, ;u:c~II..Y.d 5 August :wua.

tUl A\'llilnblc- fi·r.•n} http:/ h"'"':\in<om.com/otu'brnuds/mc-dinnP.r­,,·~·•'ks/mt\'netwol'ks/Pages/neoJ)t'ts.nspx, interutt, ncCt.$Sed 5 August 2001t

(U) Cnp•:om nnd NI!'Cipers Partner to lnhr.oc:h.tce New l\;fulti-Plntfonn l'uz~le t\clwntm-c Gmnc, :Jjuuc 2008, Imp: I I"''"'': ,·incon'i.cc:un/n~ws/ png~/uewsreoxr .nspx?rid= 1161 t141, inrel'llc-t, ncc~~d 5 August 2008:

iU) Ncopetli.C:OIII dcmogl':tl,hks, hr.rp://"'"':quanrcflst.o:om/ucc•pcts. com/ demogr:tphio:s, inrC"rut't, ncc~sed 5 Augnsr 2008. ·

(U} Bntct' Sterling Wooc:kock. '~"n Annlysis of MMOG Subscriprion Gmwth'', JON Gam<' C:onfereuo:t• (St.•nule, W:\, 14 M"y 2008), m'llil­nblc Rl http:/ h'""''.mrnogt:h: .. rt.com/, inter·uct, 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;/wc•rlclofwnrrrafr /news.hrml?sid=6192 71 ~\ int~mer, :~r.ct'Sv.d 5 August 2008. ·

{li)Julimi Dib~ll,. Notes Townrd a Th~·•·y of Ludocapiralism, 24 SeprC"mbet·-2007, available tiwn htrp://idash.org/pipcrmail/my-r.i/2007-Scprcmbt-r/01')():~73.1uml.

iuscmet, ACCr."l>'ll•!d .; August 2008.

(U) Exduding ptimm·y llllll'kl."t, iu:m-h:'lsecl first pm·ry snlcs of digital good~(\·.~; 1\·h•plc Stot~· 11\'iii:U' upgmdes !K•Id directly t(o •l•c playl'J' by Nexrm, rhe gt~mo.' publisherj. ''irtttal Economy Rl"S~111d1 N~t\,·ork, Ho:•\\' big~ tht' R~IT mnrker nn~'\\'ny?, nvailuble from ltnp:/ "''''': \it'llllll-c~cuno•••pu-g/hlog/ltO\\'_big_i~_rllr._nnr_nm&'kt•t_;,llp•: inr.er­nt!l, ru.·o:·:~~d :; Au~'\lr<C 20(18.

iU) Gr.offrey .-\. Fowl~s· nnd.Juying Q.in: ''QQ: Chinn's N't!:\,. C•)iu of ll•c RrHhu?," Thl' Wnll Sm:t>tJ•>m·nnl, :m ;\hm·h 200i, a\-:1ilnhlr: tic•tll lmp://eonline.w~j.com/public/nrridt-/SBll 751~1670114653518-

FR_~,·I>HxRtxk\·Nn•G'\''l'''''<J-h12g_20080S::!9.1Jintl?n•ll<l=n;s_ frcc%:K:hrO/o20/%3E iuterm·t, ncc:es.'ICd 5 August 20Q8.

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(ll) Rc•be1'1 O'Harrou;Jt:, Spit's Banlegi'Ound Tums Virtunl, Wnsh­ington Post. 6 Ft-bl'tlnry 2008, pn~ 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. Spi~ Want t~• find T..-&·mlists in Wol'ld of W:ll'l:rnlt, 22 Feobntaa·y 2008, avnilable from http://blc•g.wired. c:om/27bsrroke6/2008/02/umions-spit~~-'':hrml, huct·uet, Hcct·~o;cd 5 August :!008.

(li) AJ~xandt-r Sliwinski, ::Mosr Bizan?. Thing \ou'JJ Read Todny: .Mass Effect's ·,·irtual orgar<rnk rapt'·, .I 4 Jmmary 2003, !1\'llilablc: :tl Imp:/ /\\'\\'\\'Jc~'Stiq.com/2(1(}8/(11/14/most-hiz;lt'l\:·lhiug-youll-r<·Ad­rodlly-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!P·CI)Itl/ do/ nt-wsStory?cld=316563S, imerneot, ncc~d 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 Lindt~t 1...1\1>~~; 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.t·om/stOiies/2007/04/25/ gm1nt•r-se-~-8Q-\irtunl-world-penc· tmricon-by-20 11/, int~t·ne-1, accr.-5$ed 5 Angust 2008.

(UJ for t'XI'Implr, Blizznrd i~nter1aimn<'nt relies ''II plnyer repcming nnd flngging ~ystems ro de-al ,,;,h unml!rotiS issu~ 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 la~l picnu?.S of photographs. See Googl~ Imagl' Labele•; Ht lutp://imagt's.googl~.ccnu/imagelnbc:Jer/, iuteme•, nccessed 5 August 2008.

(U) K~tr-t ,: United StAres, 389 U.S. 34 7 (.1 91)7).

{U) ~·onclthe C::lll1't'llt scc;.pe of thi~ ann lysis i:c whether \\'lll'l'lllltle~ wit·eraps of hybaid US and li>a"~eign con\'t'n.'llions at't' ct.msrirutional and permitted by FISA ns am~ndt-d 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 \ \~J't'tap Act,'' 56 Ala. L:lw R.t:l·it-w 9 (2004). ('~o\s many ha\'1~ noted, rhe r<":~sonablr. expectnlion of pai\ncy tt'st is c:ircular.'').

(U) K.;ltZ, 31.19 U.S. at 351 ( 1967:-(''what [n person] seeks to presen~ as printlf', ·~''l'n in ;m a t-ea iiCCe!$ihlt' to the public, 111ny bt> cotb!titllli•.:.n­nlly pmlt~:red.'').

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(lii Kyllc.• \: l.iuimd Stntc:s, 5:ts U.S. 2i (2001; (h,ldiug um~ c•f tlwnmll imngiug a ,;r,,lnrir.lll of the Fc~ttrrh Amenclmem).

(l..i) Indeed, enrly Supreme C:cmrr (•pin.ioru ~S:"umed thnr becnul!e rech­nf.•k·~·.c~trrit!!i inf~,rmilli(Jnc>Htsil'le nf the: h(llllt' rhnt tht• inll:•nnntion is nn lc•n~•:r pl'i\'AIC:. SL"(: Ohustettd ,., lJnitt•d Sttct~. 2Ti U.S. 1~38 (1928) (holr.lin~ dun there wng no o:~ctntion of prh'll~' in tdeplwne cnlls}. Olntstend's focus <•n the merht..c:l of 5111'\'eill:mce mrhea· than rhe n:cnu·e 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 hrtp://ww,,:wir~d.com/

gluuing/gmningl'c~\it•\,.s/ne''"/2003/ II /61181i, imer1ret, ncc:~·ss<'d 5 AugtL~t 2001t

:.U) \'ahv•l ': 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 w~llid Slals, 0l"Cc!Uibt•r 2007. W\\'\\:inlt>rtlCIWOrldstats. c~"'nt, int~mC't, a((('SS('d 5 August 2008.

(lJ) (;;mmsmt·n.Juuc 21Xt7, ,,·ww.gmnAl'lltrn.t:om, imcmct, ;lccc$llr.d 5 August 2001~.

!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, :t'=ce55~l 5 August 2008.

(U) Win:d.com, lkautilid Animc kids gf:t rheir·O\\lt MMO, H April 200.<s, hllp:/ /hl•>g.wircd.com/.gnm'c:-:r/2li08/04/l4/inclcx.huul, imcr­nt.ol, ncc:-c-s.•;ed 5 At.t~tsl 2001J.

!U) Virtn411 wc.•rldll No~\\'~ ~letr.\-et-sum Hin·~ Onliru.· ~l:u·kcting ancl Product Milnogc:omc:ont Hendslor T,,;nil)~ IS May 2008. btt)~://blog. wh·c-cl.c<,m/gntnl."s/2008/0V 14/indcox.hrml, imC'ruet, ncc~ 5 :\ugu$1 200f.l. ·

{U\ """'•.fr.•rrinct.c•:>m, {April20<14'). inro:mer, acct'.ssed 5 Augtl$! 2008.

tU) '''''W.thail'yl>el'galllt~.com, {july 2008.1: intC!'I'Ilet, ncct'Slled 5 AngtL~t 2008.

~U\ Vil'lnnl ,,·odds News, Thni Go\'emrno:nt mrd Archirecrs Co­I..nundt Renlnncl Varmnl Building in Enrropia; uads ro MO\ie Ikal, 9 F.:lmmry 21:K'I8, \1'\\'\,:\'ir·ru:dworldsnews.com, illl<'l'llet, l'IC'•:es.sec.l5 :\ugu::l 20011. ·

IU} ''''"v.gmnnsurra.com, !JunC' 2007j, i.nt('rner, acc:~ssed 5 August :!(IOH.

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(U) A l~t c•f tltt~•: &.><:c111d Life left-wing gr·c•llJ>$ has hc:c:n compiled hy Dalininn Bing, nnd ir was then suggntecl by rbe posrer thl'lt members of rhe g•~)up Lng4Pt.once mny ,,·anr ro "coordinntl!' \\ilia or reach om rc•'' thc~m. ': Nakamichi, Conml•>nweahh Islands in Second Lift.- wd>­site, At:ti\'isr Groups nud 01·ganizaric•ns in Se~ond Uft~, 29 NO\'t!'lllbt•r 200i, :wniL"Iblc:o ti"Om Imp:/ /conm\011"-ealrhis.lnnd.nin.~.com/gr~.,up/ lngci-peacdfomm/ ropic/shO\,·?id= I:! I 7464"/n3.r\Topic~';03Al 030, imerm:t, ncca<~t"<.l5 Augn:~t 2008.

(U} Note thnr SHARP Hkins are \iolenrly oppcosed to 1\t'(>-lasci8«, but nor necessarily left-\\iug, skinhe-Ads. The smnc:- is tnll~ or m•>sr so-r.allt•d TmclitkJual Skins. Skinhea•:h whc• 11r~ geuuinely leftist, ideologicnlly spc:-:tking. m-e geneJ'lllly kn0\\11 as Rtc:lskins. Fbr· ~cholal'ly introdt\C:­riCins ro aspect~ of, and di\isions wirhiu, rhe skinhead snbculturt>, ~· Timorhy S. 8J'OW11. "Snbculnrres, Pop Music nnd Politics: Slcinh~ads nnd 'Nnzi Rock' in England nnd Germans" J•)urnal of So­ci:cl History ~~8:1 (2(11)4j,15i-i8;Jct1~· M. Rnlc, "Skinltcad Fnsdsm/' in Wolid Fascism: A Hisrorical ~~m.')·clupedin, eel. C~1>1inn Blnmia-es, (Sanrn Bnt'bnn1, CA: ABC-Clio, :?006).

(U) Arc~n'ding 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 siruati~lll furdu.•r if one· is willing ro spend more time ''iu-wol'ld" monitCiring o•-ganiza­ric•ns and tlu•ir acri\ities in SL.

(li) i\Im-k Lnncller andJc•hn Markoff, "Digital Fena-s Emerge: After Dnrn Siegt~ in Esroni11,'' Nt•w \(ork 'limes, 29 Mny 200i, nvnilnble from http:/ "'"'"\:1\~'times. com/2007/05/29/technolclgy/29estonin.hnnl, intcornc-t, accc~cl5 August 200R

(U) BBC News, ''Sw,.dt-n pL'lns Se~:ond Life emba~;" 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: Esto­nia Opten~ ,o\n Embassy In Second Lil~," in Tech Crunch, 5 Dec:embel' 2007, n\'~ilable li'Cnn Imp:/ "'"'":t~chcnmch. coot/2007 I 12/05/youre-not-in-rhe-u . .._.:,·-mly-m•>t-e-t':!ltmia­opens-nn~mb.usy-in-sec:cmd-life/, inremt?'r. accessed 5 August 2008; Ak~la Tnlnmn~a, ""The i\·Ialdi,·es Vinunl ~:moos~:'' in Second Lilt- Insider, 23 Mny 2007, a\'nilablc.­from lmp://''"''':sec:or1lUileinside-•:com/200i /05/2:~/ . rbe-mnlclh-es-,irtttnl-embn$5)'/, interuet, accessffl5 Augttst 2008.

(U) Based 01.1 intea·nariconnl govt>J'JUllent IT busines.~ c:nse submissions found in Tht' 2007 nnd 2006 edition of The J.J~m'\"nle, (;(l\'crnmcnt srl·tion, ·n,e Compntt'lwc•ticl Honors Prr.ogmm, a\'llil~tble from Imp:/ "'"""'·l:whonors.c>rg; intemct, nc~eS!ed 5 Angusr 2008.

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'''"r/2008/02/09/1202~3423201R.luml, illlt"l'llet, occessed 5 Augusl 2008: McAfee Vit·tunl Criminol~gy Report, a\'ailable ftT.Jm http:// w''"'~mc11fee.com/ m•lt'l!'llenrch/ criminologr.:..report/ dt..fnult.honl, iuu:rnct, Rt:ces.~ed 5 Angu~J 2008.

(U) BBC: News, Rnsainn NOO n:jl!'cts spy 'smenr', 23 .Jnnnna·y 2006, nweiiAbl;:: li'tlm Jurp://uc:-ws.bbc.ro.uk/2/hi/europe/4h40632.stm, iaucrm!t, nt'C:r.lllled 5 Augu!lt2008: NCO Awnreucss In \'it11ml worlds. December 6, 2006, htrp:/ '''"''"v.knowprose.('om/node/ 16977, inter­ntt, nct:C"ssecl5 Attgtll'r !l0n.8.

tUJ lul~irllllllion c•lnccwuing dw St:~onrl Lift' Lil~mrit:m Ariny wntl deri'~ from n presentntion by the- orgnnizntion's foundeli gn't"n nt SHARf, .,n 17 jnlr 2008. a:s well a!l Ji'tlm :~uuSt~Jueau conwt'Sittions.

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244 {U) BBC News, Cash Card Tnps Vit·nml Game Funds, 2 May 2006, il\'ailnble fi·omhttp://news.blx.co.uk/2/hi/te-chnc•logy/4-953620.stm, iuternet, accessed 5 August 2008.

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246 1U} Wit'('r.nrd, \Virecnrd Bt111k: Arst C:cmum b:utk in ~ond l..ife, li) ~lny 200i, a\11ib1ble ft·om httr:/ /www9.,,·i~cnrd.C(om/siugle'liew/ar­tiele/•J3/ wirecard-btm-l.hunl?cHnsh=5b8d50b~l2c, internet, accessed 5 August 2008.

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250 (U) I..aut~ncejohnwn, FDCH Technology \'tare, I April 2008.