Virtual copyright infringement?
Second Life (an online virtual worlds system that's been popular in recent years) is embroiled in a controversy around virtual sex toys. From the article: "Apparently, there are not enough legitimate or inexpensive sex toys for all the denizens of Second Life, so some residents have elected to make knock-offs. Just like the real-world controversies surrounding real-world goods made by companies like Tiffany and Louis Vuitton, Eros LLC has filed suit against the alleged infringers and Linden Labs, for housing and supporting the alleged knock-offs."