27/11/2024 1 Dr Michaela MacDonald Senior Lecturer, The School of Electronic Engineering and Computer Science Queen Mary University of London Interac(ve Entertainment Law 2 1 Copyright – Overview Copyright law determines the following: • Subject matter • Authorship • Ownership • Term of protection • Economic rights • to copy the work • to issue copies of the work to the public • to rent or lend the work to the public • to perform, show or play the work in public • to communicate the work to the public • to make an adaptation of the work or do any of the above in relation to adaptation • Digital exhaustion • Exceptions – fair dealing and fair use • Moral rights 2 27/11/2024 2 Video Games and Copyright • Legal classifica+on of video games • Video games are complex digital products – which elements and aspects can be protected individually, and can video games be protected as such? • Digital exhaus+on • Does digital exhausDon apply to complex digital products? • Sale of goods or provision of service? • Copyright infringement • There are unique uses and pracDces with regards to video games that may give rise to copyright infringement • Genera+ve AI and copyright • QuesDons about the authorship and ownership of computer-generated works and potenDal infringing pracDce with regards to the training data 3 Legal Classifica;on of Video Games • Different jurisdic.ons have different approaches to protec.ng video games • Unitary approach • Audiovisual works • Computer programs • Something else? • Distribu.ve approach Andy Ramos, Laura López, Anxo Rodríguez, Tim Meng and Stan Abrams, The Legal Status of Video Games: ComparaCve Analysis in NaConal Approaches (WIPO) (parCally outdated) 4 27/11/2024 3 Nova Produc+ons Ltd v Mazooma Games Ltd [2006] 5 Legal Classification of Video Games – UK • Claim that two arcade games infringed copyright in Nova’s Pocket Money game • No direct copying of source code – the claim was for copying the program by copying the outputs that appeared on the screen • Nova also argued the defendants have copied the look and feel and mechanics of the game IELR 3.2: Copyright protection of video games in the post-Brexit world, article + video 6 27/11/2024 4 Legal Classifica;on of Video Games – US “Courts in this Circuit and others have long held that elements of computer programs may be protected by copyright law. This includes both the code for the program as well as the graphical elements for programs such as video games.” [Tetris Holding, LLC v. Xio InteracDve, Inc. 863 F.Supp.2d 394 (D.N.J. 2021)] 7 Legal Classifica;on of Video Games – EU “As is apparent from the order for reference, videogames, such as those at issue in the main proceedings, cons6tute complex ma9er comprising not only a computer program but also graphic and sound elements, which, although encrypted in computer language, have a unique crea6ve value which cannot be reduced to that encryp6on. In so far as the parts of a videogame, in this case, the graphic and sound elements, are part of its originality, they are protected, together with the en6re work, by copyright in the context of the system established by Direc6ve 2001/29 (InfoSoc Direc6ve).” (C-355/12 Nintendo) (C-5/08 Infopaq) (C-310/17 Levola at [42] – precise and objecDve form of expression (C-683/17 Cofemel) 1. Original 2. Expressed in a manner that makes it idenDfiable with sufficient precision and objecDvity, even though that expression is not necessarily in permanent form 8 27/11/2024 5 Relevance • Author • Different authors may be identified depending on the type of work, e.g. audiovisual works may have a different author depending on the jurisdiction • “The principal director of a cinematographic or audiovisual work shall be considered as its author or one of its authors. Member States shall be free to designate other coauthors.” (Art 2(1) Term Directive) • Term • Different length of protection depending on the type of work, e.g. for audiovisual works • “The term of protection of cinematographic or audiovisual works shall expire 70 years after the death of the last of the following persons to survive, whether or not these persons are designated as co-authors: the principal director, the author of the screenplay, the author of the dialogue and the composer of music specifically created for use in the cinematographic or audiovisual work.” (Art 2(2) Term Directive) 9 Relevance • Ownership of work created by employees • PotenBally different rules depending on the type of work, e.g. for soDware • “Where a computer program is created by an employee in the execuDon of his duDes or following the instrucDons given by his employer, the employer exclusively shall be enDtled to exercise all economic rights in the program so created, unless otherwise provided by contract.” (Art 2(3) Computer Program DirecDve) • Exhaus.on • C-128/11 UsedSoD • C-263/18 Tom Kabinet • TPMs • C-355/12 Nintendo 10 27/11/2024 6 Digital Exhaus;on • Authors have an exclusive right to authorise or prohibit distribu.on of their works (and their copies) by sale or otherwise, for example by lending or even by distribu.ng free copies • Within the EU, this right is exhausted aZer the first authorised distribu.on of the work on the EU market • Does the exhaus.on principle apply to digital copies as well? • CJEU has ruled that the InfoSoc and SoZware Direc.ve are outside the remit of the exhaus.on principle • The InfoSoc Direc.ve is the general rule (the exhaus.on principle does not apply) and the SoZware Direc.ve is the lex specialis 11 UsedSoft v Oracle • The CJEU confirmed that exhaustion can take place for digital distribution, but only for software (so far), and only if the following conditions are met: the permanent character of the ‘licence’, the appropriate remuneration of the rightsholder, and the reseller making their copies unusable for after the resale • The Software Directive as lex specialis will apply only when it concerns computer programs per se 12 27/11/2024 7 Nintendo v PC Box • The court ruled videogames, such as those at issue in the main proceedings, consDtute complex maFer comprising not only a computer program but also graphic and sound elements, which, although encrypted in computer language, have a unique creaDve value which cannot be reduced to that encrypDon and fall under the remit of InfoSoc Direc.ve • The principle of exhaus.on does not apply 13 Tom Kabinet • The case concerns the Tom Kabinet website, a challenger to the publishing industry, who operates a marketplace for people to sell and buy second-hand e-books • In order to sell used e-books, sellers can upload e-books onto the site by agreeing to delete their own personal copies from their hard drive and they are asked to verify that the e-books being uploaded were legally obtained • The CJEU ruled that the supply to the public by downloading, for permanent use, of an e-book is not a covered by the concept of ‘distribu.on’, but by that of ‘communica.on to the public’, and therefore cannot give rise to exhaus.on 14 27/11/2024 8 Capitol Records v ReDigi (US) • Case regarding the reselling of digital goods like music and e-books • The court ruled that the company’s secondary market for digital music infringes on the copyrights controlled by record companies • The case has been closely watched as a test of whether the first sale doctrine — the legal principle that someone who owns a copy of a copyrighted work, like a book or album, is free to resell it — can be applied to digital goods • The judge ruled that ReDigi’s system infringed on Capitol’s reproduction rights because it transmitted an unauthorized copy of the file over the Internet 15 Sale of Goods or Provision of Service? • Another important considera.on is whether the interac.on between the rightsholder and the end-user is a sale of goods or a provision of service • If a customer pays for using a digital product, an e-book or a video game, for example, does this qualify as a sale or service? • A crucial dis.nc.on in copyright law between the (exhaus.ble) distribu.on right and the (inexhaus.ble) right of making available • Will the concept of cloud gaming upset this dis.nc.on even further? IELR 3.2 Trepova-Fava, Aren’t we all exhausted already? EU copyright exhausDon and video games resales in the Games-as-Service era Longan, Dimita, Michels, and Millard, Cloud Gaming DemysDfied: An IntroducDon to the Legal ImplicaDons of Cloud-Based Video Games, Queen Mary Law Research Paper No. 369/2021 (SSRN) 16 27/11/2024 9 Copyright in Choreography 17 Copyright in ta-oos reproduced in video games • Are tattoos capable of copyright protection? • Do you need a license to reproduce it in a video game? • Solid Oak Sketches, LL v. 2K Games, Inc. and Take-Two Interactive Software, Inc., (2020) • Alexander v. Take-Two Interactive Software, Inc., (2020) 18 27/11/2024 10 Copyright Infringement • CreaDon of a video game • IncorporaDon of third-party intellectual property • Cloning • DistribuDon of and access to a video game • Emulators and ROMs • Key selling • Account transfer and second-hand video games • AlteraDon of the video game • Modding • In-game user creaDons • Interfering with the integrity of the video game • Re-purposing the video game • UGC • Livestreaming and E-sports Key issues: • Cloning • Modding and in-game user creaBon • Key selling and account transfer • Interfering with the integrity of the video game 19 Cloning • Cloning refers to the prac.ce of crea.ng a game which replicates the game experience of the original game, usually by a compe.tor • Not a new problem, but becoming more common / large scale • Elements that are being copied: • Look and feel • Game mechanics • Characters • Graphics and visuals 20 27/11/2024 11 Cloning • Copying can be: • Literal • Literal copying of abstract features • Non-literal copying • Video game copying / cloning usually involves non-literal copying, which is the most difficult to prove / succeed with a claim • Jurisdiction-specific 21 Tetris Holding, LLC v. Xio Interac+ve, Inc., 863 F.Supp.2d 394 (D.N.J. 2012) • The Court stated: “there is such similarity between the visual expression of Tetris and Mino that it is akin to literal copying”. 22 27/11/2024 12 Spry Fox LLC v. LOLApps Inc, No. 12-00147, 2012 WL 5290158 (W.D. Wash. Sept. 18, 2012) 23 Alterna;ve Avenues • Patent law • Trademark law • Multimedia trademarks • Design law • Unfair competition and passing off • Takedown requests • ‘Naming and shaming’ 24 27/11/2024 13 Altering a Video Game • Modding • In-game user crea1ons • Modding • From recolored versions to exis.ng ouhits and hairstyles for The Sims 4 to complete overhauls (see images for comparison) • These altera.ons – ‘mods’ – are distributed online free of charge 25 Modding – Crea;on • Crea.ng a mod • Introducing new content, feature, or element to the original video game without copying it (add-on, plug-in); but more oDen • The new elements may imitate the structure and organizaBon of exisBng code, or incorporate features of the exisBng art • Copyright implica.ons • Copying (of the work as a whole or of a substanBal part or similar equivalents) implicate the reproducBon right in the original video game and/or its consBtuent works, as well as adaptaBon or derivaBve works rights 26 27/11/2024 14 Modding – Use • Using a mod • The player must have the original video game which it modifies already installed on their gaming device • The mod alters the content, when interaction with the original video game • It does not operate as stand-alone pieces of software • Copyright implications • Mere use of a mod may constitute copyright infringement, particularly where the EULA expressly prohibits players from modifying it • Take-Two Interactive Software v. James (UK) 27 Modding – Making available • Making a mod available online • Copyright implica.ons • The making available of mods online potenBally implicates the distribuBon, making available to the public and/or communicaBon to the public rights in the original video game • Where a mod contains infringing material, the operator of the website on which it is hosted may also incur liability, except where the “safe harbor” rules for Internet service providers apply 28 27/11/2024 15 Integrity of a Video Game • Private servers • Chea.ng in online video games via the use of hacks, bots, or the provision of unauthorized private servers • It impacts the integrity of the game and users’ experience • Copyright implica.ons • Infringing the reproducBon right and the communicaBon to the public right • It may also amount to a circumvenBon of TPMs and a breach of EULAs • MDY v Blizzard (US) • Riot Games, Inc v Stefan Delgado Argote et al. (US) • Epic Games, Inc v Joseph Sperry (US) • Blizzard against Bossland (Germany, UK) 29 Key points • Copyright considerations underline creating and using video games as well as the tools needed to develop them • Other IPRs complement the protection available to a whole range of assets present in video games, and any other associated products and services, both physical and digital, altogether creating a complex matrix of IPRs • Interactivity and creativity hinges on the questions of • legal nature, • scope of protection, • what qualifies as infringement, • are there any valid exceptions? • Multi-layered enforcement strategies are required (litigation is not always the best option) 30 27/11/2024 16 Thank you! 31