virtual world and LAW

Bookmarklets | MOVABLE TYPE Via Wired : "You're a dwarf in a virtual world, and that troll over there has just defamed you in front of everyone. So can you sue, or is it all just fun and games?"

The State of Play: Law, Games, and Virtual Worlds was a conference that aimed to "examine the state of play today in an effort to understand the phenomenon of digital games and the virtual worlds they create and to discuss the complex social, psychological, and legal issues to which they give rise."

The game universes are more and more intricate and privacy, fraud, breach (of contract), defamation occur... What should lawyers do ?

good luck guys :)