A recent UK Court of Appeal ruling in the case of R v Lakeman has established that in-game currency can be legally classified as property, rendering it subject to the Theft Act. The case centered on a former Jagex employee accused of accessing and emptying 68 player accounts of 705 billion gold pieces in Old School Runescape, with the intent to sell the currency for an estimated £550,000 in real-world value. While a lower court initially dismissed the theft charges by arguing that digital currency lacks the economic quality of rivalrousness, the Court of Appeal reversed this decision.
The appellate judges determined that in-game gold meets the necessary criteria for property, including being definable, identifiable, and capable of being assumed by third parties. Crucially, the court rejected the notion that digital assets are merely non-rivalrous information. By drawing parallels to physical goods, the ruling asserts that because an individual’s possession of specific in-game currency precludes others from using that same currency, it functions as a rivalrous asset. Furthermore, the court emphasized that the existence of secondary, offline markets provides these digital assets with recognized cash value, further solidifying their status as property.
Although the ruling is currently limited to the context of criminal theft within the UK, its implications for the broader video game industry are significant. Legal experts suggest that the reasoning employed by the court could influence future civil litigation and consumer protection debates. By establishing a precedent that recognizes the real-world value of virtual assets, the decision may impact ongoing discussions regarding the regulation of loot boxes and the rights of players when publishers terminate live-service games. Consequently, the industry faces a potentially more rigorous legal environment regarding the ownership and status of virtual goods.