In a nutshell:
First Congressional Hearing on Virtual Worlds
Who: Subcommittee on Telecommunications and the Internet
Edward Markey (D-Mass.), Subcommittee Chairman
Philip Rosedale, Linden Lab
Susan Tenby, Techsoup
Dr. Colin Parris, IBM
Dr. Larry Johnson, New Media Consortium
Where: Washington, D.C. and Rayburn Island (Second Life)
When: April 1, 2008
What: Use of virtual worlds for education and business
Topics: Consumer protection, intellectual property protection, online banking, gambling, and child protection

Jane Harman, Edward Markey, Cliff Stearns, and Gene Green

Opening Remarks:

Edward Markey (D-Mass.) gavelled the subcommittee to order as an avatar from inside Second Life. He noted that “at their best, virtual worlds are vehicles for understanding across borders and in communities.”

Cliff Stearns (R-Florida) noted that “better graphics will lead to avatars that look, walk, and act just like real people... in the very near future” and commented that virtual worlds “can best flourish without overregulation.”

Gene Green (R-Texas) suggested that virtual worlds provide a “realistic way to get experience running an entrepreneurial venture.”

Jane Harman (D-California) expressed concern over a recent press report about terrorists “using virtual worlds to transfer money and find new recruits.”


Susan Tenby, Phillip Rosedale, Larry Johnson, and Colin Parris

Testimony:

Philip Rosedale (former CEO of Linden Lab) talked about the benefits of Second Life as “the next step in the fulfillment of the Internet's promise” with the potential for “commerce, education, entertainment, and other interaction in a 3D environment... [rather than] the flat and isolated two-dimensional world of the World Wide Web.”

Susan Tenby (Senior Manager of Community Development at TechSoup), discussed non-profit opportunities in virtual worlds, “The Nonprofit Commons has already achieved broad appeal with interest from organizations from 59 countries... [with] members ranging from large international organizations such as the humanitarian group CARE, national-focused groups like America's Second Harvest, and community initiatives such as the Lower Eastside Girls Club of New York.”

Dr. Colin Parris (VP, IBM Systems and Technology Group) talked about the future of 3D virtual worlds as the natural evolution of the 2D Internet, “Virtual worlds and spaces are quickly becoming powerful tools with the potential to transform enterprise and government processes by increasing top line and bottom line growth, improving efficiency and productivity, and augmenting our ability to innovate and spur entrepreneurial growth.”

Dr. Larry Johnson (CEO, New Media Consortium) introduced his organization, a “501(c)3 not-for-profit association of more than 250 world-class colleges, universities, and museums focusing on emerging technologies,” noting that “The future of virtual worlds that is yet to unfold is one that promises an exponential leap over what is possible with the technology today.”


Discussion Highlights:

Chairman Markey raised the issue of child protection, “How do you keep the adults out of the teen area and teens out of the adult area?” Philip Rosedale said that the teen community is encouraged to report suspicious behavior.

Rep. Bart Stupak (R-Michigan) asked Rosedale if they had “set up any kind of sting operation” in Second Life. “We have not,” he said, “but I suspect law enforcement agencies may have done so. We have not, as a company, felt a need to do that.”

Rep. Jane Harman (D-California) read part of a Sunday New York Times “virtual jihad” article from last August into the record. Philip Rosedale pointed out that Second Life manually reviews all transactions greater than $10 USD.

Asked whether Second Life could be used as a place to launder money, Rosedale replied, “We have never seen any evidence of such activity going on in Second Life,”

Rosedale commented that running a small business in Second Life can be “a lemonade stand experience, and may be superior to other kinds of learning.”

On the lighter side, Rep. Jane Harman joked that some people already think Congress is a virtual world, and that Chairman Markey was throwing the event merely to learn how to get to the next level in World of Warcraft.

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