Second Life IP Suit

My morning gossip rag, the New York Post, had this story yesterday about a suit brought by six Second Lifers suing a Queens man in the EDNY for copyright and trademark infringement for "counterfeiting and selling versions of their products." Among the products allegedly copied were clothing, shoes, and beds. As a virtual and real world, does the conceptual separabilty analysis apply to the design of useful articles on Second Life?