Almost a year ago, Linden Lab modified the Second Life Terms of Service. In that change, they included wording that appeared to many creators to be a sweeping grab of intellectual property rights.
In the ensuing months, there was a great deal of discussion about this, including several open forums held by residents who were intellectual property lawyers in Real Life. A number of popular creators removed their products from the grid, or even left SL in protest.
Now, finally, LL has modified the Terms of Service to, as a post in the SL blog today puts it, "more closely match our intent." The blog post also states that LL has no plans to appropriate or re-sell content created by residents.
Although it's taken them the devil of a long time to do it, I have to give LL kudos for this action. Read about it here: http://community.secondlife.com/t5/Featured-News/Updates-to-Section-2-3-of-the-Terms-of-Service/ba-p/2777874
And be sure to re-read the new Terms of Service here: http://lindenlab.com/tos
But, despite the soothing, upbeat words of the official LL blog, others are still taking LL to task, pointing out that the new wording does not substantially change the TOS. And, from a legal standpoint, they're right to do so. It's the TOS that constitutes the binding agreement between you and Linden Lab no matter what they may say on their blog or elsewhere.
Those of you with nasty, suspicious minds should have a look at this blog post: http://insertfunnyname.wordpress.com/2014/07/16/linden-lab-whiffs-the-tos-again/