SAN FRANCISCO – Two vendors of virtual adult products have initiated a federal class-action lawsuit against the developer of massive online virtual world Second Life. The suit, filed by Eros LLC and Shannon Grei dba Nomine, alleges Linden Lab routinely engages in intellectual property theft and provides Second Life users the tools to do the same.Eros and Nomine are only two of the real-world companies that have set up shop to sell virtual goods inside Second Life. Eros has pursued a number of Second Life users for infringing its copyrights and trademark rights to a software product known as the Eros SexGen Bed. The bed allows SL users’ avatars to engage in a variety of sexual shenanigans within the virtual world. Although Eros has demanded Linden Lab clamp down on infringers, the developer has failed to do so “because it makes too much money from all the infringement,” according to court documents. Not only does Linden Lab turn its back when confronted with users who abuse Eros’ rights, according to the suit, but Linden Lab also sells a version of the product itself.

Products sold within Second Life are exchanged for a virtual currency known as Linden Dollars. The dollars can be converted into real-world bucks and represent significant revenue for companies like Eros and Nomine.

“Within Second Life, users — known as ‘Residents’ — can obtain employment, purchase land, commit crimes, build homes and careers, make friends, fall in love, have sex, visit museums, and most important, make and spend money,” the complaint notes.

According to court documents, Linden Lab “materially [contributes] to and [supervises] the infringing conduct of others within Second Life…. Linden Lab has made trademark and copyright infringement free and easy, turning the Second Life community into a vast virtual flea-market.”

The SexGen Bed isn’t the only product Second Life and its users have converted, according to Eros Chief Executive Officer Kevin “Stroker Serpentine” Alderman. His company produces about 40 products under the SexGen trademark. Of primary concern to him is that Second Life users have hijacked the SexGen name to vend cheap knockoffs, a practice that harms his company’s reputation. In addition, Alderman said he often finds himself providing “genuine replacement products” to users who have been duped by an unscrupulous knockoff artist.

Grei, a resident of Oregon, said she has similar problems with her copyrighted works.

The suit seeks injunctive relief, damages and restitution.