Bragg v. Linden Research, Inc., 487 F. Supp. 2d 593 (E.D. Pa. 2007), was a civil action (No. 06-4925) removed to the United States District Court for the Eastern District of Pennsylvania in October 2006. Linden Lab, an online virtual world service provider of Second Life, terminated the account of user Marc Bragg when Linden Lab discovered that Bragg had found a way to acquire land in the virtual world at a lower-than-market price. The user brought this suit, which was ultimately settled before a final decision was reached. However, the District Court did decide on two issues which may be important in future virtual-world litigation: that the Second Life Terms of Service's mandatory arbitration provision was unenforceable, and that interaction with a person in a virtual world can satisfy a state's "minimum contacts" requirement for personal jurisdiction.
In 2006, Pennsylvania lawyer Marc Bragg ("Marc Woebegone" in Second Life) brought a lawsuit against Second Life developer Linden Lab when Bragg's account was unilaterally disabled by Second Life administrators. Linden Lab claimed that Bragg had violated their terms of service by URL-hacking the Second Life virtual land auction website in order to gain access to otherwise-unavailable auctions. As a result, Bragg was able to purchase virtual land within Second Life valued at $1,000 for approximately $300. Bragg's account was suspended while Linden Lab conducted an investigation, and was later closed completely. Bragg argued that, by closing his account, Linden Lab also dissolved his virtual assets, which Bragg valued at between US$4,000 and US$6,000.