Maker Of Virtual Sex Toys Takes Online Dispute To Federal Court

By ELAINE SILVESTRINI

Published: Jul 3, 2007

TAMPA – Kevin Alderman thinks of himself as "the Hugh Hefner of the digital millennium."

He's built a virtual adult entertainment empire, making and selling cyber sex toys in a three-dimensional online world known as "Second Life," a hugely popular Internet community with 7 million residents. It's an Internet universe where businesses thrive, universities teach, musicians perform and people fly.

But Alderman wants the real-life courts to settle his grievance with another avatar, or online persona.

On Tuesday, his company, Eros, filed a lawsuit in U.S. District Court claiming the avatar known as Volkov Catteneo has violated the trademark on one of his devices called a Sex Gen. Eros claims the avatar has made unauthorized copies of the device and is selling it for a profit.

Alderman's products may exist only in cyberspace, but they bring real money. Alderman recently sold a virtual representation of Amsterdam he created for $50,000 through E-Bay.

He said he sells about 1,000 Sex Gens a year for the equivalent of about $40 each. As Alderman explained it, a Sex Gen is kind of a machine that manipulates avatars into various positions.

"I don't just do sexual positions," Alderman said. "I also do cuddles and kisses and fun things." But the sex is "what people want," he added. "I give them what they want. I'm an entrepreneur."

Alderman said he's made enough money to sell a plumbing contracting business he used to have in Tampa and to employ 12 people who design, build and sell objects in Second Life.

Although one online site referred to him as an Internet porn mogul, Alderman said he doesn't do pornography. "I'm a toy maker," Alderman explained. "I'm an erotic Geppetto."

But Alderman also said, "I'm the bad guy who makes these sexual animation systems…I also make genitalia and all kinds of appurtenances…articles, toys, racks, chains, whips, anything that could be construed as sexually or fetish-oriented."

Alderman, whose avatar is known as "Stroker Serpentine," doesn't know the real identity of Volkov Catteneo, the avatar he's suing, and has asked a judge to approve subpoenas for the company behind "Second Life" and Pay Pal, demanding that they turn over records showing the avatar's identity.

Alderman has an email address for the avatar. The Tampa Tribune sent an email to the address seeking comment on the lawsuit, but did not receive a response.

Alderman said Volkov Catteneo is not the only avatar who has done him wrong. "A lot of people copy me, copy my work, copy my ideas," he said. "Because it's an anonymous platform where you're an avatar cartoon character, as opposed to a real-life person, people think they can operate with impunity."

Alderman said he hopes to make an example with this lawsuit. "We're doing the best we can to protect our product, our income, our intellectual property," he said. "We're hoping that this is going to send a message to quote unquote hackers and antiestablishment types that just because it's a virtual platform, we're not going to sit idly by and let you rip us off."

Why not go to a virtual court?

Alderman and his attorney, Frank Taney, say that's not an option.

First of all, Taney said, Second Life doesn't have a recognized court or arbitration board. And second, even if it did, its decisions would be virtually impossible to enforce.

"Only a U.S. judge can send out the cops, so to speak," explained Taney, whose avatar is named Thunderclap Merlin.

But David Johnson, a visiting professor of cyber law at New York University, said if Second Life had a court, it could be more powerful than a U.S. Court, enforcing its laws by throwing people out of the online community.

Taney said he's done some research and believes Alderman's lawsuit is the first of its kind. Johnson said he hadn't heard of a similar suit. "There haven't been many real-world lawsuits about things going on in Second Life," Johnson said.

But Johnson said the courts shouldn't have a problem applying trademark laws to Second Life. "To the extent that someone creates a strong association between a brand in Second Life and a line of products, I don't see any reason the same principles (of law) wouldn't apply" there.

Johnson said his university has an island in Second Life with a replica of the U.S. Supreme Court building.

Second Life, Johnson said, is "noted for the extent to which users create things in the world… People are clearly creating businesses." This lawsuit "would be a normal progression of the development of the virtual economy."

He added, "Even if it's the first or one of the first, it's certainly not going to be the last."