Accounting for the Actions of the Winklevii and Virtual Goods Are Both Difficult to Do (Video)

On Friday’s Digits, AllThingsD’s Liz Gannes and I discussed two difficult subjects both having to do with Facebook: Why the Winklevoss twins won’t give up on suing the company and why it’s so difficult to account for virtual goods inside social games.

Liz kicked off the show by talking about how the twins dropped their fraud suit against Facebook in favor of a new one that accused the company over whether it  “intentionally or inadvertently suppressed evidence.”

Specifically at issue are a number of instant messages written by a young Mark Zuckerberg, which were too explicit for Liz to mention on air.

Later, I chatted about how the laws are not yet clear on how companies should record revenue from virtual goods, leaving them to come up with their own best practices. Meanwhile, Zynga will likely become the first example as it is expected to go public any week now.

Here are the clips:

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work