Here’s a story I heard recently from an anonymous source. Based on the source’s identity and some of the details of the story, I believe it to be true. I have omitted some details here, to protect the source.
A well-known company, running a massive multi-player virtual world, was considering adding a new space to their world. Due to the nature of the space, characters there would probably want to make music. So the programmers created a set of virtual musical instruments, and tools for players to create their own instruments. The plan was that players would get virtual instruments and make music, for all of the reasons people make music in the real world.
But management nixed the idea, on advice from lawyers, because of concerns about copyright infringement. The problem was that players might use their virtual instruments to play copyrighted songs, and the game company might be sued for contributory or vicarious copyright infringement, for failing to prevent this.
Stop for a minute to think about this. All kinds of virtual objects exist in this virtual world, including a wide variety of weapons. But saxophones? Too risky. Presumably management would have approved a magic saxophone that was only capable of playing non-copyrighted songs, but the engineers had no idea how such a thing could be built.
To put this in context, recall that programmable virtual instruments are widely sold and used in the real world. They’re called synthesizers, and they’re really just computers that can be programmed to play any sequence of sounds, whether copyrighted or not. It’s not so easy to draw a principled line between real-world synthesizers and game-world instruments that makes one legal and the other illegal.
Perhaps the company was being overly cautious and the lawsuit risk was illusory. But I’m not so sure. This would hardly be the most farfetched copyright lawsuit we have seen.