Virtual property generated within online gaming environments is represented as data within a designated digital space. Given its intrinsic value, capacity to meet user demands, legal recognition, and manageability, it is categorized as a distinct form of property that can be exchanged under certain conditions. As such, it possesses attributes akin to property interests. According to Article 2 of the Tort Liability Law of the People’s Republic of China, virtual property is acknowledged as a form of civil interest that warrants legal protection.
Definition of Online Games
Online games are crafted by developers who write code to build a virtual gaming universe. These games are hosted by online gaming companies that provide server platforms, rent network bandwidth, and offer free downloads of game client software.
Players, also referred to as game users or customers, register by accessing a website on their computer, creating a free account, selecting a username, setting a password, and agreeing to user terms. After registration, players can log in using their username and password to enter the virtual gaming world, which allows multiple users to participate simultaneously.
Players can create characters and complete in-game tasks to earn experience points, virtual currency, equipment, pets, treasures, and other tradable virtual assets. Although disputes regarding property damage in online gaming occur within a data-driven virtual realm, they involve clarifying the rights and responsibilities of both players and game operators in the real world, potentially leading to property damage claims and remedies.
Legal Protection of Virtual Property Interests in Online Games
Virtual property is a concept that exists within computer systems, crafted by programmers and represented as data in designated electronic environments. This type of property holds value and serves the interests of specific groups, and it can be traded under certain circumstances. In the realm of online gaming, virtual property often takes the form of items such as equipment, currency, and pets. For example, virtual equipment can be sold for amounts ranging from hundreds to tens of thousands of Chinese yuan.
It is important to recognize virtual property interests as a distinct category of property. The data generated during online gaming is rooted in the programming code developed by creators, which shapes the virtual game world. Game operators provide the necessary server platforms and establish the rules of the game, while a diverse community of players actively participates.
While game operators may claim that the data generated and stored on their platforms—including account details, character information, and virtual item data—does not belong to the players, it is essential to acknowledge that players, by choosing to engage in the game and paying associated fees, create accounts and characters and acquire virtual items based on their choices. Consequently, players have rights to the accounts, characters, and virtual property they develop with the consent of the game operators, and these rights warrant legal protection.
Various virtual items can be effectively managed and hold functional value for their owners, addressing emotional needs and providing enjoyment. Under specific gaming conditions and technical frameworks, players have the right to manage their virtual property and benefit economically from such transactions.
In summary, although virtual property exists as data, it possesses intrinsic value, fulfills human needs, is legitimate, and can be controlled by individuals. Therefore, it qualifies as property that deserves legal protection.
Reasons for Loss of Virtual Property Interests and Compensation Responsibilities
There are several reasons for the loss of virtual property interests, which can be grouped into four main categories:
First, actions by online game operators that result in the loss of virtual property. To maintain order within the game, operators may freeze or delete virtual items or even entire game accounts if they suspect users of using private servers, cheats, or illegal equipment.
Second, the inability of online game operators to meet their security obligations, leading to virtual property loss. If operators fail to ensure the security of their network systems, servers, and programs, resulting in a security environment that falls below the general technical security standards or the levels specified in service contracts, users may suffer losses to their virtual property.
Third, online users not fulfilling their own security protection responsibilities for their virtual property. Similar to credit card holders, online users are expected to encrypt and keep their account passwords confidential to prevent unauthorized access. Neglecting these responsibilities can jeopardize their virtual property, leading to potential losses.
Fourth, illegal intrusions using network technology that cause virtual property loss. Even if online game operators provide a secure environment, unauthorized intrusions using network technology can create situations that are difficult for operators to prevent, ultimately resulting in virtual property losses.
Responsibilities of Online Game Operators
In the first scenario, online game operators must demonstrate that their actions, such as freezing or deleting virtual property, are justified, especially if they have identified cheating or similar activities, and that these actions are necessary to maintain order in the online environment; otherwise, they may be held liable for infringement. In the second scenario, if the online game operator has not fulfilled their security duty, they should be held accountable. The third and fourth scenarios arise from user negligence or external technological exploitation, which the operator cannot control; in these cases, the operator should not be held liable.
When assessing whether an online game operating company has committed infringement or failed to meet its obligations, the company, due to its advantageous position, carries the following burden of proof: 1. To provide evidence related to the damage incurred during the operation of the online game and to reasonably explain the factual process; 2. To prove that their actions are legitimate, that they have provided a secure gaming environment, acted with due diligence, fulfilled their operational obligations, and have not infringed upon the legitimate rights and interests of online game users.
The Preferential Opinion of the Civil Division One of the Supreme People’s Court
In the context of online gaming, virtual property, while existing as data within a defined space, holds value, fulfills human needs, is legitimate, can be owned by individuals, and can be traded under specific circumstances. As such, it exhibits characteristics of property interests. In accordance with Article 2 of the Tort Liability Law of the People’s Republic of China, virtual property is recognized as a form of civil interest, and therefore, the law should safeguard this interest.