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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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik