A property case against Second Life publisher Linden Lab filed in a Pennsylvania court will not be dismissed, a judge ruled Wednesday, according to Valleywag.
The case, which was filed May 1, 2006 by Pennsylvania attorney Mark Bragg, alleges that Linden Lab illegitimately took away the items in Bragg's account and banned him from Second Life after he used a cheat to build up his in-world inventory of virtual items in the process of amassing thousand dollars' worth of assets.
Now, Valleywag reports, the court has denied (click here for PDF) Linden Lab's request to dismiss the case, as well as its request to move the case to arbitration.
Many people are watching this case closely, because it represents the first virtual-world property dispute to make it this far in a legal proceeding. If the eventual result is a ruling that Linden Lab has to give back the property, valued at around $8,000, it could have major implications for Linden Lab and makers of online games like World of Warcraft and many others.