This week, Linden Lab announced that it was going to start charging listing fees and minimum commissions on its Second Life Xstreet Web-shopping adjunct in the near future. Within hours, vendors took down thousands of products, many abandoning the service entirely in favor of alternative services.

It's unclear just how many vendors have abandoned the Xstreet SL system, but it apparently was enough to temporarily overload the Web-sites of third-party sites such as Slapt.

Yesterday at the morning Second Life mentors' meeting, Linden Lab staff announced that Linden Lab's sponsored mentor group, which had been functionally closed (in all but name) for approximately a year now, would finally be disbanded in practice. The move doesn't really come as much of a surprise to observers of the Lab's sponsored volunteer programs over the last eighteen months.

Almost immediately more ex-mentor Second Life social groups than we could comfortably count sprang up, as people prepared to maintain their network of contacts without the overarching group umbrella. While there was surprisingly little actual yelling, some members of the organization feel the blame lies squarely at the feet of Linden Lab's CEO Mark Kingdon, though there's not a lot of apparent evidence to justify that.

Virtual environment operator Linden Lab has partnered up with 888 Holdings plc's Gisland/Dragonfish division to provide payment processing for non-US Second Life customers.

A spokesperson for Linden Lab told us, "We're working together with Gisland on a cashier interface and other tools that will give Residents more payment options and make it easier for Residents to pay in a wider range of native currencies than they can now. Gisland will also help Linden Lab implement appropriate anti-fraud measures as we expand these payment options. In addition, Gisland will assist Residents directly with payment-related issues, including failed transactions."

That last part is fascinating, as that would be something of a first insofar as Second Life payments processing goes, as is the tantalizing hint of expanded payment options – something that is of considerable interest to users outside North America.

Telstra BigPond (a major Australian Internet Service Provider, with an approximate 50% market-share) has had one of the most popular corporate presences in the virtual environment of Second Life, even including a customer service center staffed eleven hours per day, five days per week. In a nation with expensively metered bandwidth, BigPond even refrained from metering a portion of the data sent to its customers from Second Life. All of this for what has basically been an experiment.

That, however, appears to be coming to a close. BigPond intends to shutter its Second Life presence on 16 December.

Back in 2007, Linden Lab formed regional partnerships with companies to operate localized portals for the Second Life platform, called the Global Provider Program (also sometimes referred to by the Lab as the Gold Provider Program, though distinct from the Gold Solution Provider Program). Linden Lab identified three non-English regional markets that it felt were priorities for support and localization: Brazil, Korea and Germany.

The first of the providers was Kaizen Games in Brazil, followed by Barunson Games (then called T-Entertainment) in Korea in October 2007. Bokowsky and Laymann might constitute a third partner in this program for Germany, but the the actual arrangement there isn't very clear.

Thus far, one of the key factors in Second Life performance has been the class of server hardware hosting the simulator. There are plenty of other non-server items that might contribute to perceived poor performance, of course, but server class versus server utilization is a pretty consistent factor.

Traditionally, each class of server has a numerical designation and represents a certain basic equipment and operating system specification. In the past, some estate owners have opted not to upgrade to a newer class of hardware in order to avoid higher monthly fees. Now the server class system is coming to an end.

Back, just before Halloween, a Linden Lab staffer accidentally sent an email intended for internal circulation to a mailing list containing quite a number of Second Life users. We were sent a copy a few minutes later, and the email was widely circulated among developers of third-party Second Life viewers by Halloween.

What caught people's eye about the email was how harsh it was when it came to describing aspects of the upcoming Second Life Viewer 2.0 user-interface (the key feature of that software). It certainly didn't pull many punches leveling criticism at various design choices that were obviously in evidence in the evaluation version that had come up for testing.

And for just that reason we are, after a little thought, rather heartened by it.

Linden Lab has released the figures for the third-quarter performance of Second Life.

If you want the short version, it wasn't a growth quarter. Q3 2009 figures were not really very distinguishable from Q2 2009. There's actually nothing wrong with that. Growth plateaus are occasional and inevitable and generally represent a good opportunity for engineering and support to catch up a little with the service.

Mark Kingdon, Linden Lab's CEO, has been a bit of a mystery figure since his appointment about a year and a half ago. While he has not been uncommunicative, it's been hard to get a very good sense of the man at the helm of Linden Lab, his passions, interests and direction.

We were very pleased, therefore, when he took the time to sit down with us and answer a whole grab-bag of questions, about himself, about Linden Lab, and – of course – about Second Life. Bear with us, because we've got a lot of ground to cover.

Linden Lab, the company behind the Second Life platform is launching the open beta of Project Nebraska today. Project Nebraska was the working title for what is now called Second Life Enterprise, a standalone Second Life solution for enterprise use.

This "Second Life in a box" solution, is actually in two boxes. It consists of a combined software and hardware bundle, including two 1RU rack-mount servers, prepackaged as an appliance and configured to provide virtual environment and voice services, ready to use with standard Second Life viewer software.

But that's not all.

'I cannot read the fiery letters,' said Frodo in a quavering voice.

'No,' said Gandalf, 'but I can. The letters are English, of an ancient mode, but the language is that of Lawyers, which I will not utter here. But this in the Common Tongue is what is said, close enough:

'You agree to review and adhere to the guidelines on using "Second Life," "SL," "Linden," the Eye-in-Hand logo, and Linden Lab's other trademarks, service marks, trade names, logos, domain names, taglines, and trade dress..'

He paused, and then said slowly in a deep voice: 'These are the Master Rules, the Terms of Service that rule all accounts.'

Seems that most of what you hear in and about Second Life recently revolves around creator rights, copyrights, trademarks, intellectual property rights, infringement and so forth. It's not that intellectual property infringement is new – you can certainly replicate content with the official viewer if you know how – but it is in the limelight and a major feature of Second Life discussions by virtue of assorted high-profile infringements, and legal actions.

Copyright infringement can't be made to go away. Since the Statute of Anne in 1710 originally codified copyrights in law, infringement has only been somewhat quelled by various means, never practically eliminated. In these predominantly digital times, there are many new tradeoffs could be made that could reduce the incidence of infringement, but at the cost of also reducing functionality.

While Linden Lab allows you to submit a DMCA notice via post or fax, there is a third option that's valid while you're waiting for the promised new DMCA process to come along.

While many service- and platform-providers insist that they do not accept emailed DMCA notices, if you submit them correctly, the provider is lawfully obligated to accept them. Interestingly, a proper DMCA notice by email can actually give the recipient more surety about the identity of the submitter than faxed or posted notices.

Remember Kevin Alderman (known in Second Life as Stroker Serpentine), CEO of Eros LLC who is one of the plaintiffs who have filed a lawsuit against Linden Lab for negligence with respect to security and failing to act in accordance with their obligations under the DMCA? Well, it can't be a good week for either him or for the Lab.

During Linden Lab's Burning Life event in Second Life this year (a sort of living pop-art showcase and party that draws many spectators) persons only presently known to the server logs left a cache of copied content, including at least one of Alderman's latest products, and a whole swag of other content belonging to other designers – free for the taking.

It isn't really Burning Life's fault, but if you had to place the stuff somewhere where many people would take it, none-the-wiser that it was unlawful content, that would be the best place at this time of the year.