The intellectual property protection in games

The intellectual property protection in games

In 2019, the digital games industry alone – without considering physical copies – generated $ 104,4 billion in revenue, revealed Statista, a company specialized in market data. After pandemic arrived, revenues increased by 23 percent year-on-year to $ 128,3 billion in 2020. By 2025 a value of $ 268,8 billion is expected to the game market. 

These numbers reflect the strength of an industry recognized for being very innovative and that grows exponentially each year. In such environment, it is normal for gaming companies to worry about protecting their ideas, inventions, and other creations through intellectual property mechanisms, including patents. 

In Brazil, patents cannot be used to protect the games themselves, their rules, conception, their visual presentation, etc.. In many cases, these aspects are protected through copyright or through the creation of a trademark related to the game.

Furthermore, the source code through which the game exists, runs, and is implemented (software), is not patentable. A software registration, which is equivalent to a copyright registration, may be used to protect source code.

Because of its ease of use and versatility, copyright (as defined in Brazilian Law n. 9,610/1998) is a significant protection for most game firms, as it is an adequate tool for protecting game ownership.

Copyright encompasses tales, characters, scenarios, music, graphics, and even the source code in the game world. Nevertheless, copyright protects the expression of ideas rather than the ideas themselves. 

 

The intellectual property protection in games

 

This has two ramifications: no game ideas are copyrighted until they are implemented in some form (like source code, or in a word file, i.e.). Second, similar concepts used in various games do not always infringe on third-party copyrights. If an FPS shooting game is registered, for example, there will be no infringement of the rights of the person who registered if another person registers a game with the same genre but different aspects.

Copyright also gives the owner the ability to prevent others from exploiting his work. Moreover, they are simple to enforce and independent of registration, as they exist from the minute the game is created, while patents and trademarks have complicated registration systems, and trade secrets necessitate specific actions to be taken within the organization, as well as continual monitoring to maintain the right. 

Even if registration is not required to invoke copyright, it is highly advised because it is a quick and easy approach to establish authorship and priority in the event of a dispute.

It is important to remark that although software (source code) cannot be patented in Brazil, it is possible to patent software by describing and defining it as methods, processes, and systems that solve a technical problem through a technical solution.

When these concepts are applied to the game industry, one can patent inventions such as digital signal processing (which includes image, graphics, lighting, textures, objects, rendering, and sounds), procedural data generation, handling a dropout situation in a network game, memory management, processing commands issued by a player, and so on.

Before filing a patent, it is necessary to check in Brazilian Patent and Trademark Office (BPTO) and other patent databases to see if a similar or identical invention has previously been registered. 

Author: Carlos Eduardo Nelli Principe, Associate Lawyer at Peduti Advogados.

Source: Video game industry – Statistics & Facts 
Digital Video Games To Hit $146B In Revenue In 2021, A 40% Increase In Two Years

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”

SOFTWARE TAXES IN BRAZIL: ONLY MUNICIPALITIES ARE ALLOWED TO TAX SOFTWARE SERVICES

SOFTWARE TAXES IN BRAZIL: ONLY MUNICIPALITIES ARE ALLOWED TO TAX SOFTWARE SERVICES

The tax regime applicable to software transactions in Brazil had raised controversies for a long time, because the federal government and each state or municipality have their own discretionary powers to enact their laws and regulations for collecting their taxes.

In this context thecompetence’s conflict between the ICMS and the ISS over new technologies of software supply, it is worth clarifying that the ISS is a municipal tax levied on the import and national provision of services provided by companies, legal entities or self-employed professionals, while the ICMS is a state tax levied on the import of products and the circulation of products, that is, applicable to products.

Before the taxation of payments for software could be varied depending on whether the transaction is characterised as the licence of a copyright, the sale of merchandise or the provision of services.

Thus, the decision was extremely difficult to identify a correct taxation of the software that caused the trial to be postponed several times

SOFTWARE TAXES IN BRAZIL: ONLY MUNICIPALITIES ARE ALLOWED TO TAX SOFTWARE SERVICES
Fonte: STF

On February 18, finally the ministers of the Supreme Federal Court (STF) decided by majority vote that the Municipal Tax on Services (ISS) affects the licensing or right to use software because it is a service.

According to the STF, the taxable event of the ICMS is the transfer of ownership of the asset, which does not apply in cases of licensing or right to use software characterised as intangible goods.

Nonetheless, in the next session will be addressed it is still awaiting a decision about if this new understanding will be required only after the date of publication of the minutes of the judgment of the case or if it will also be valid retroactively, which would legitimize, for example, the recovery of amounts unduly paid to state tax authorities.

Author: Sheila de Souza Rodrigues, Associate Lawyer at Peduti Advogados.

Source: STF conclui julgamento sobre disputa tributária em software (STF concludes the judgment on software tax dispute)

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”

Software licensing contracts and its characteristics

Licensing contracts are contracts that allow use by a third party other than its depositor / inventor ensuring that the ownership of the invention remain with the inventor himself. 

The software in particular is a copyright, so there is no need to speak here in Brazil about a software purchase (only with regard to the patrimonial rights of this software) because the moral rights are personal rights – which are inalienable and irrevocable. 

In order to allow other users to have access to the software, the parts celebrate a licensing agreement. This is because it is interesting for developers to invest in the software so that the original software is used because it is safe and reliable. 

It is important that companies that intend to use third party authoring software enter into a licensing agreement to keep themselves safe both in terms of data vulnerability, access to sensitive information, viruses, etc. 

software licensing contracts and its characteristics

It is also important to note that the use of software outside the terms of the license or without a license is classified as counterfeit and can cause major problems for companies that use the counterfeit softwares. 

When it comes to softwares, there are different licensing agreements, the most common being those based on the number of users allowed (using the licensed software) and those based on the number of computers that the licensed software can run on. 

Most companies that license some softwares usually choose the licensing terms to be for a number of users or to be used by everyone in a given environment.

Every software license has an expiration date, except for perpetual use. The permission is canceled whenever someone violates the contract, disrespecting the terms of use. Some licenses need to be renewed with each system update for the user to have access to the new versions. Others have automatic renewal.

Licensing agreements do not need to be registered towards the BRPTO, only the transfer of the use of the source code to third parties is formalized through a technology transfer contract, which must be registered towards the BRPTO, pursuant to article 211 of Law 9,279, of May 14, 1996 (“Law 9,279 / 96 ”), And of article 11 of the Software Law, since such registration is a condition to generate effects before third parties.

Lawyer Author of the Comment: Laís Iamauchi de Araujo

Source

Headline:It is important that companies that intend to use third party authoring software enter into a licensing agreement to keep themselves safe both in terms of data vulnerability, access to sensitive information, viruses, etc.

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”