The video game industry is constantly expending with not only multi-national corporation but also small publishers who develop games worldwide making it a multi-billion-dollar global market. From developers to publishers and distributors, all parties involved in this industry have to navigate complex legal issues. These include, amongst other things, licensing.

Video game licensing encompasses areas such as intellectual property law, contract law and competition law.

  1. Copyright

Video game licensing is partly governed by copyright law as video games are considered to be literary and artistic works, which are protected under copyright law.

Under copyright law, the inventor of the game will be the owner of it and will therefore get exclusive rights to reproduce or distribute the game. With licensing, this allows the owner to grant specific rights to third parties (i.e. distributors, publishers etc) for a consideration.

  1. Trademark

When creating a video game, developers will often include distinctive names or logos. Under trademark law, these would be protected against unlawful use by third parties. However, licensing would play a significant role in the development and distribution of the game worldwide. As for copyright, the owner of the trademark would license the right to use the trademark, therefore allowing third parties to use the names, logos or character.

This would be the case when merchandise is developed, such as clothes, figurines or goods in general.

Notwithstanding the above, there are a wide range of elements to take into consideration when preparing a licence agreement and specific provisions would have to be included within such a document, such as:

Video games licensing is a complex field of law and our commercial team would be happy to assist companies with the process.

For further advice and assistance please contact our Commercial Solicitors on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

In early July 2023, Leicester City FC was found guilty of anti-competitive behaviour following an investigation of the Competition and Markets Authority (CMA).

Between 2018 and 2020, the football club and JD Sports had an arrangement to fix replica kit prices. In particular, they agreed the following:

The above continued until January 2021.

Arrangements which have for object or effect the prevention or restriction of competition within the UK are strictly prohibited by competition law.

The CMA Executive Office of Enforcement found that because of the club and retailer’s behaviour, fans may have ended up paying more than they would otherwise have done.

Although both parties have now admitted their involvement, JD Sports initially reported the illegal conduct. By doing so, JD Sports received immunity from penalties as part of the CMA’s leniency policy. Such a policy provides immunity from penalties, or significant reduction in penalty, to a business that has been involved in a cartel and who has reported the cartel activity as well as assisted the CMA with its investigation.

As a result of the above JD Sports will not receive a fine for its involvement. On the other hand, the Football Club received a fine of £880,000.00.

The rules around competition law are strict and aim to promote and maintain market competition. This is implemented by regulating anti-competitive behaviour. Our commercial solicitors provide assistance to businesses on issues involving competition law and would be happy to assist you on any related issues.

For further advice and assistance please contact our Commercial team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk