Business Communicators of Second Life has published a lengthy in-world discussion of legal issues hosted by the blogger behind Virtually Blind - a blog on law and virtual worlds - and the founder of the Second Life Bar association, Benjamin Duranske. It will probably come as no surprise that there are a lot more questions than answers, but the issues involved have begun to attract the attention of legal professionals.
Questions posed: are avatars people? What are the intellectual property rights associated with images in Second Life, which are simply (or not) pictures of pictures?
In what sense is Second Life real?
There's much more there if you're inclined.