Topics discussed in this chapter include Generations Y and Z and their acceptance of virtual reality, the increase in the number of virtual worlds, gaming virtual worlds, and the social virtual worlds for educators selected for inclusion in this discussion. Open source virtual world platform portability issues are discussed in connection with the acquisition, development, and control of virtual property. The line between “play spaces” and real life is discussed in terms of the application of the “magic circle” test to teaching in virtual worlds with a real-money based virtual currency system, as well as how faculty can reduce student legal and ethical problems. Virtual world law is examined in light of the terms of service (TOS) and end-user license agreements (EULAs), the concept of virtual property, community standards/behavioral guidelines, safety/privacy statements, intellectual property and copyright. Ethical aspects of teaching in virtual worlds include a definition and analysis of griefing/abuse, harassment, false identity, and ways that each world handles these problems. Whyville, SmallWorlds, and Second Life are examined in terms of legal and ethical aspects Research findings and legal and ethical teaching guidelines are presented for those teaching courses using virtual worlds, with special considerations for teaching in Second Life. These topics are for informational purposes, only. Instructors should seek competent legal counsel.
