The spread of broadband Internet access as well as Internet flat rates pushes the emergence and growth of virtual worlds especially Massive Multiplayer Online Role-Playing Games (MMORPGs) such as World of Warcraft. The increase in the economic role of this sector has given rise to many economic and legal questions. This interdisciplinary paper examines the assignment of (intellectual) property rights to the players as well as to the licensee considering intangible property rights. We analyze the legal as well as economic characteristics of virtual goods differing two types of virtual goods: the avatar, a virtual character that is driven by the player, and virtual objects that can be gathered by the avatar during the game. Although Terms of ...