© 2008 IBM Corporation

Chris Francis

Regulation and Public Policy issues around Virtual Worlds

© 2008 IBM Corporation

Why have a 3D Internet Regulatory debate now?

‘Laws are like sausages. It is better not to see them being made’ - Prince Otto von Bismark

‘Regulations rarely prevent what they ban’

The sausage machine EU Directive process:– Already covers many convergence issues– Slow to adapt or change– Broad (overlapping) in coverage

But generally brings certainty– Guarantees market access– Limits further intervention

Virtual worlds – the perfect test case

© 2008 IBM Corporation

The regulatory debate – business as usual

1. Existing real world objectives that can (and will) be achieved using traditional regulatory processes or business models

2. Objectives that increase in priority or importance owing to the virtual world setting (e.g. copyright)

3. Traditional real world objectives requiring new approaches or business models (e.g. consumer protection and cross-border trade)

4. New virtual world orientated objectives?

Regulatory principles:• Proportionate

• Harmonization (by best practice)

• Innovation friendly: Technology Neutral Business Model Neutral

© 2008 IBM Corporation

(R)Evolutionary issues

Playing a game or doing business?Entering debates with utility unproven and differing user

perspectivesConsumer rather than enterprise perspectives dominate

Limited providers aiming at ‘open’ useOften difficult to address issues of mainstream alternativesLack of competing governance models

Pace of innovation immense – cheap enough to ‘play’ with Immediate commoditisation, low barrier to entry, global from day one, perpetual ‘beta’

© 2008 IBM Corporation

Virtual World and 3D Internet – a spectrum

Real WorldGame World

Augmented RealityAugmented Virtuality

Data flows

Scripted Freeform

Plot

TelepresenceAnonymisation

Text system Voice systems

Identity & Communication

Accountability

Exchange rates

Complementary currenciesGold Pieces

Digital island

Interoperability

Persistence

Economy

User creations

Legal clarity

IPR/DRM

© 2008 IBM Corporation

Island

Where in which world?

ISP

ISP

Shop

Avatar

shopkeeperlandowner

ISP ISPShop assistant

© 2008 IBM Corporation

But how does it FEEL?

© 2008 IBM Corporation

Regulatory ComplianceEnvironment

Electronic Communication

Services

IPR

HR

Audio Visual

Data Privacy

Data Retention

Consumer law

Banking, e-money

© 2008 IBM Corporation

Governance, Risk and Voluntary areas – avoiding a backlash

Child protection

Trade disputes

© 2008 IBM Corporation

Power of Policy endorsement

Congressional Research Service Report, April 9, 2008, on “Avatars, Virtual Reality Technology, and the US Military: Emerging Policy Issues”

– VR allows large numbers of personnel to interact in a simulated face-to-face environment

– much lower cost than for a real-life face-to-face

– virtual world scenarios are also used to train (medical) personnel (for mass casualty events)

– therapy treatment for military veterans suffering from Post-Traumatic Stress Disorder (PTSD)… by immersing them back into the sights and sounds of simulated past battles.

© 2008 IBM Corporation

Experiment (state at play) now!

• Meetings– Travel displacement

– Productivity

– Collaboration

• Education– better use of expert educators and specialists

– address shortages of key STEM teaching disciplines

– life long learning

– 'at desktop' advantages combined with real time tutor groups and interactive and peer to peer support.

– simulation of expensive experiments, experiences or field trips.

• Communication• Therapeutic uses

© 2008 IBM Corporation

Power Up!

The Challenge Develop a new 3D virtual world, multiplayer, online game to get teens

excited about math, science, engineering and the environment

IBM developed and delivered PowerUp in February 2008

Free online game available to everyone

Developed in partnership with NY Hall of Science as part of TryScience initiative

Correlated to U.S. national science standards and developed with input from real high school students

Created six lesson plans for teachers to use in the classroom that connect directly with PowerUp

Extremely well-received by target audience

Selected as the Official Game of Earth Day 2008

powerupthegame.org