From GamePolitics comes news that a virtual land dispute that started last year is moving into actual court rooms. Attorney Marc Bragg "exploited a URL quirk to grab several plots of virtual land for cheap," and Linden Labs then suspended his account, citing ToS violations.

Bragg responded by filing suit in a Pennsylvania court, which Linden tried to have dismissed (it didn't work). No word on when it will actually be going to be heard in federal court, but GP says:

Some industry watches don't believe it will make it as far as examining whether "virtual" property is the equivalent of "real" property, but will focus mainly on whether Linden Labs had the right to deny Bragg access to his account after his violation of their ToS.

I can't imagine having the free time to pursue virtual property disputes in federal court. Must be nice. Maggie Greene

Virtual Land Dispute Moves to Real-life Courtroom [GamePolitics]