Linden Lab has invested quite a lot in the past few years to upgrade their financial systems to meet these new regulations, and they decided to make the savvy move to sell their well-developed virtual economy services to other platforms.
It is no surprise that former Linden Lab platform Sansar (now owned by Wookey) is one of Tilia’s customers. But it is somewhat of a surprise to me that among those new customers is a blockchain-based mobile property trading game called Upland, which I had never heard of before. Here’s a brief Vimeo promotional video:
Now I think it is interesting that a game that describes itself as “a property trading game paired with a decentralized economy” would decide to use Tilia instead of trying to create and monitor its in-game economy. Linden Lab might well be on to something here! I can foresee a time when other social VR platforms, virtual worlds, and games might also make the decision to outsource the management of their virtual economies in this way.
I am not going to comment much about Tilia and the upcoming changes to Second Life here until AFTER the Tilia Town Hall Metting on Friday. I am hoping some adjustments will be made to the original announcement; there certainly has been enough outcry to warrant some rethinking of position.
I and others have been VERY vocal however on the SL Forums (Tilia Takes Over thread). It is very BAD form to make an officialFAQ thread and then delete many long, thoughtful and important questions — let alone not answer any of the hard questions for over a week now.
Post deletion continued throughout the day with many people repeating their original questions and demanding answers. Unfortunately comments continued to be deleted and the week and a half thread remained volatile with arguments within the questions — most to be deleted once again when a moderator returns to work.
I am not a big fan of censorship in order to control the conversation. Linden Lab needs to step up to the plate and address everybody’s questions, instead of deleting them and pretending they didn’t exist.
UPDATE 12:42 p.m.: Someone pointed out to me that LL said in the introduction to the FAQ thread, that “off topic commentary may be removed or moved from this thread”.
HOWEVER, who is deciding what is or is not “off topic”? That’s right, Linden Lab. According to Chic, people are posting perfectly valid questions, and Linden Lab is just deleting their questions instead of answering them. THAT. IS. WRONG.
Regardless of the rights and wrongs of the whole Tilia situation, Linden Lab need to seriously reflect on why they bother paying their PR team anything. The vast majority (but not all) of the complaints raised have been down to their poor wording of their initial announcement; and overzealous moderation at a time like this is akin to pouring petrol on the flames of outrage. It’s been amateur hour around here, and the damage is almost entirely self-inflicted.
One might actually expect a semi-competent PR team to, as Blush says, “control the conversation”: that is what PR teams are for! And yes, that is a form of “censorship”: controlling the narrative, manipulating the online “buzz” to your advantage, absolutely does attempt to shut down damaging counter-narratives. And we should be entirely unsurprised about any attempt to do that: LL is not a government, it’s a privately-owned corporation trying to make profits, or in this case retain disgruntled customers. This is not exactly a new or weird thing, right? Every corporation with a public presence does this, when they package good news, or try to contain the damage from bad news.
What’s really weird about this is that they are doing such an honestly gawd-awful job of it. There is almost no apparent logic or pattern to the stuff that has been removed. And it’s not just questions that have been deleted, but sincere attempts by residents to answer the sometimes panicky and generally poorly informed posts from people who have heard rumours of what is happening, and haven’t bothered to read through the FAQ at the beginning of the official Tilia post. And indeed, so poorly presented and organized is that material, that its no wonder. If this is “censorship,” it’s a laughingly incompetent version of it; if it’s “public relations,” it’s an utter disaster. It’s like they want to be evil, but are almost endearingly awful at it. And in the final analysis, there’s a chance that it will not just be LL and SL that suffer as a result, but everyone with any kind of stake in the ongoing health of the platform.
We’re making some important changes to Second Life that will help us comply with U.S. laws and regulations. To do this, Linden Lab formed a new subsidiary, Tilia, to offer certain financial services to the Second Life community…
In order to stay in compliance with regulatory requirements, if you wish to process a credit, we will need certain personal information to verify your identity, including your name, address, date of birth, and social security number (or government-issued identification if you are not a U.S. Citizen). You may be required to provide additional information to complete the transaction. Tilia will securely store this information so that you should only need to provide it once…
As always, Second Life remains free to access and enjoy! However, if your Tilia Account is inactive for a period of 12 months we will charge your Tilia Account a fee to the extent permitted by applicable law. If you have questions about the inactivity fee, please see Tilia’s Terms of Service.
I have been diligently hunting through the Tilia FAQ and the Tilia Terms of Service, and I cannot seem to find any mention of exactly how much this “inactivity fee” is. Frankly, this is a rather hamfisted announcement, which has generated no end of upset, uproar, and controversy among SL users.
Is this an extra fee on top of the recently changed credit processing fee?
No. The credit processing fees remain unchanged for you as a Resident. You will not be charged anything extra for a credit processing fee by Tilia. The only other fee which may apply is an inactivity fee. This fee would only apply to those accounts with USD balances which have not accessed their Tilia account in any way (for example, to check balance) or had any credit processing transactions over a period of 12 months or more.
Can you clarify whether there are ID requirements and fees for basic Linden Dollar purchases?
These changes apply to USD credit processing and do not have any impact on the routine purchasing of Linden Dollars. Only Second Life Residents who Process Credit (cash out) of their USD balance to their payment method (e.g. PayPal) are impacted by the ID verification requirements (which are necessary for compliance with U.S. laws and regulations). The inactivity fee applies only to those accounts with USD balances which have not accessed their Tilia account in any way or had any credit processing transactions over a period of 12 months or more.
One frustrated commenter spoke for many when they posted:
I’m just sad that I had to spend half an hour reading forum posts and LL’s answers to the forum posts to find out what the heck it all meant. Pointing people at a mile long TOS page full of legal jargon wasn’t ever going to go smoothly, was it?
Amen. This could have been handled much better, in my opinion.
One thing is very clear: the days of being able to cash out of Second Life (relatively) anonymously are OVER. And if you are earning an income from Second Life, it would probably be best if you were to talk to your lawyer to understand this mountain of legal jargon now being thrown at you. I feel sorry for any content creators in SL who now have to deal with all the headaches that these new regulations will cause. And I wouldn’t be surprised if some content creators finally decide that they’ve had enough, and that it’s no longer worth the hassle to do it anymore.
And the timing of this announcement is dreadful, happening AFTER Linden Lab encouraged so many Premium members to resign up for another year at the former rates, and AFTER all the Meet the Lindens events of Second Life’s 16th birthday celebrations, where they could have answered questions about all this. It’s rather clear LL waited to make this announcement so as not to cast a pall over the festivities.
Also, will other U.S.-based virtual worlds need to follow suit? Obviously, Linden Lab can’t speak to what other companies are going to do, but I wouldn’t be surprised at all if other American-based metaverse companies are going to have to draw up similar rules for their users in light of tightening U.S. financial regulations. Significant changes could be in store for a number of different platforms.
OFFICIAL INFORMATION FROM LL The Blog Post announcing this is couched in legalese, and not very useful, but you should probably read it anyway. It is at least short. The FAQ is not as helpful as it could be, but does include some specific information about valid forms of ID, etc. The FIRST comment here by Linden Lab does contain useful information, and is quite clear. It is on page 5 of this thread. The SECOND comment by LL is on page 7, and is also quite good.
LEGITIMATE QUESTIONS: Why…is it necessary for everyone to agree to the Tilia ToS, and have an account, if only a small minority will actually be using it (to cash out). My suspicion is that this is about efficiencies.
What are the workarounds for non-US residents who may not have a passport or driver’s licence? It would be good for LL to provide more guidance on what they will accept from non-US citizens.