LEVELING UP: THE ROLE OF INTELLECTUAL PROPERTY RIGHTS IN GAMING
Gaming Industry in India is booming, with an estimated increase in revenue to $9.2 billion by 2028-29, alone, the sector has expanded during the financial year 2024 to $3.8 billion, with a stunning increase of 23%. India contributes more than 20% to the world’s mobile games downloaded, which is well ahead of countries like the US and Brazil. With mobile games making up 90% of India’s gaming market, this mobile-first phenomenon places the nation apart from other countries like the US at 37% and China at 62%.
For the sustenance of such growth, the Indian government is working towards regulations, with the self-regulatory bodies proposed under the IT Rules, 2023, to balance innovation with control. In this era of rapid growth, intellectual property rights play a crucial role in protecting creativity, encouraging investment, and enhancing competitiveness within the gaming industry. The blog will explore the many-sided role of IPRs in the gaming sector, which covers patents, trademarks, copyrights, and the effects on game creators, developers, and gamers.
The Need for Intellectual Property Rights in Gaming
Intellectual property rights provide the core of protection for creative and innovative content in gaming. Video games in India do not have specific regulatory frameworks. However, different law protects different component of the video game.
Patents in Gaming– Patents protect novel and inventive technologies. Patents are granted for innovations that solve technical problems, provided they meet the criteria of originality, creativity, and industrial applicability under the Indian Patents Act, 1970.
Video games, like other software, are not typically covered by patents unless related to a technical application or hardware. For example, there have been patents awarded to technical innovations in video games, such as Epic Games’ dynamic lighting engine and Nintendo’s algorithms for creating characters. Such patents ensure technological developments remain proprietary.
Trademarks in Gaming– Trademarks protect a game’s identity, including its name, logos, and other branding elements. They help in the maintenance of consumer trust and differentiate products. Trademark registration, under the Trademarks Act, 1999, ensures exclusive rights for 10 years, renewable indefinitely.
For instance, Nintendo trademark protects its platforms and products, whereas Activision’s Call of Duty is an example of trademarks that contribute to strong recall of the brand. Zynga Inc. v. The Learning Company is the case in which the court looked into the allegations of trademark infringement over the use of the name The Oregon Trail, showing how trademarks contribute to the resolution of disputes in the gaming industry.
Copyrights in Gaming– Under the Copyright Act, 1957, copyright protection encompasses all the artistic and creative aspects of video games-including code, artwork, music, and narrative elements. In contrast to patents, copyrights do not mandate registration but provide protection that is powerful enough for creators. In the case of modified PlayStations offering pirated games, the Delhi High Court decided in favour of Sony Computer Entertainment. In Universal City Studios v. Nintendo Co., Ltd. case was another example that showed how copyright protected character designs such as Donkey Kong.
Gamers and Streamers rights under Intellectual Property
This expansion will make IPR more significant, as the gaming industry progresses into virtual reality and fully immersive experiences. Advances in game mechanics, hardware, and graphics will lead to a rise in patent applications over innovative technologies. Trademarks will similarly protect franchises, studio names, characters, and logos to ensure recognition in the market and to the customers themselves.
IPR not only protects investment by developers but also gives a conducive atmosphere where ideas can grow. By putting intellectual property, companies may protect their inventions, attract investors, and also maintain the competitive advantage on the international market.
- Gamers and Streamers: Gamers and streamers, in one way or another, interact with intellectual property through their content development and playing. There are important areas where IPR will affect them including:
- Usernames and Avatars: The online identities of players may be trademarks and copyrights.
- Content Creation: Streamers use game content under fair use for critiques and commentary, provided they respect the game’s Terms of Service (TOS).
- Anti-Cheating Mechanisms: Patented systems protect games from unauthorized modifications, ensuring fair gameplay.
Streamers must navigate IPR carefully to avoid copyright violations while fostering creative communities. They should understand fan content rights, adhere to licensing agreements, and recognize the role of IPR in promoting safe gaming environments.
Challenges and Opportunities for IPR in Gaming
- Challenges
- Piracy and Counterfeiting: Unauthorized distribution of games undermines developers’ profits and efforts.
- Cheating and Hacking: Anti-cheating patents are critical in maintaining competitive integrity.
- Dynamic Content: The evolving nature of game content complicates copyright enforcement.
- Opportunities
- Innovation Protection: Patents and trademarks ensure proprietary technologies remain exclusive.
- Cultural Impact: IPR fosters the growth of culturally relevant games, enriching the gaming ecosystem.
- Community Building: Copyright and trademark protections support safe spaces for gamers and creators.
- Enforcing Intellectual Property Rights
Strict IPR enforcements are the surety for developers who can innovate freely without being exploited. Measures against piracy and legal safeguards for patents, trademarks, and copyrights keep the game ecosystem healthy. Protecting the content and innovation, IPR ensures investments, supports creativity, and provides fair competition.
Conclusion
This is a multibillion-dollar global phenomenon that thrives on creativity and technological advancement. Intellectual property rights form the foundation for protecting the innovations that drive this sector. It ranges from securing patents for cutting-edge technologies to safeguarding trademarks that build brand identity, IPR fosters innovation and ensures fair play in the gaming world.
In India, where the gaming market is witnessing unprecedented growth, a strong IPR framework is necessary to maintain this momentum. Although piracy and content misuse remain challenges, there are opportunities for innovation and cultural enrichment. For developers, gamers, and streamers, understanding and respecting IPR not only ensures compliance but also contributes to a vibrant, ethical gaming community.
By aligning innovation with legal protections, the gaming industry can continue to captivate audiences, set new benchmarks in entertainment, and emerge as a global leader in creative technology.
References
- India gaming market to hit $ 9.2 billion by FY29: Lumikai, Times of India (Available at- https://timesofindia.indiatimes.com/business/india-business/india-gaming-market-to-hit-9-2-billion-by-fy29-lumikai ).
- The Indian Patents Act, 1970.
- The Trademarks Act, 1999.
- The Copyright Act, 1957.
- The Learning Company v. Zynga Inc., 1:11-cv-10894.
- Universal City Studios, Inc. v. Nintendo Co., Ltd. is 797 F.2d 70 (2d Cir. 1986).
- Sakshi Tulsyan & Manya Jain, “GAME OVER OR GAME ON? – INTELLECTUAL PROPERTY CHALLENGES IN THE GAMING INDUSTRY”, NLUA Journal of Intellectual Property Rights (2024).
Vedant Pujari, Partner
Ahana Roy Chowdhury, Senior Associate
Aditya Singh, Intern