Let me give you the legal story to prevent you, and anyone reading this, from getting all anxious about what really are just rumours that lack a legal basis.
Linden Lab (the company behind Second Life) generally cannot and does not take direct legal action on behalf of third-party creators for copybotting. Under intellectual property law, copyright ownership for user-created virtual goods belongs to the individual content creators, not Linden Lab. Therefore, the original creator must enforce their own rights.
Why Second Life Doesn't Sue
Lack of Standing: Linden Lab does not own the copyright to items made by independent 3D modelers and scripters, meaning they lack the legal standing to sue for copyright infringement of those specific assets.
Jurisdiction and Hosting:
OpenSim grids operate on independent servers globally outside of Linden Lab's network, making direct platform enforcement or asset seizure impossible.
What Actions Can Be Taken
DMCA Takedown Notices: The individual creator whose work was stolen can issue a DMCA takedown notice to the hosting provider or grid owner running the OpenSim grid. Grid operators are typically required by law to remove infringing content upon receiving a valid notice.
Real-World Lawsuits: If an OpenSim grid operator or user refuses to comply with a DMCA takedown or continues to profit from pirated assets, the individual copyright holder can file a real-world copyright infringement lawsuit against the infringing party.
Internal Platform Bans: While Linden Lab cannot police OpenSim, they permanently ban any user caught using CopyBot tools within Second Life itself.
In other words: as a grid owner, yes you are liable for anything found on your grid that violates the copyrights of the original creator. However the first step they can take will always be filing a DMCA. As a grid owner, you then have to remove the work of that specific creator, which they need to prove IS their original work, from your grid. Do so, and that's the end of the story.
Only if you fail to remove it after having been ordered to do so can they file a lawsuit against you. But let's get real here. What Secondlife creator has the time and the financial means to actually file a lawsuit. And not against just one grid owner, but against all several hundreds of them, given stuff in Opensim is copied from one grid to the next etc. Add to that nobody makes any actual money from sharing things in Opensim so it's not like they are actually missing out on any profits.
While it is easily defendable that copybotting is morally wrong, ways to take actual legal action against it are slim to none.
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