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Piracy in Gaming: How to safeguard IP?

Video games have become more than just a ubiquitous pastime and a gigantic market. The video game industry has benefited the most from the pandemic. According to statistical data, the video games segment's revenue is anticipated to reach US$197.00 billion in 2022.

Piracy in Gaming: How to safeguard IP?
Photo by Luis Villasmil / Unsplash

The video game industry has long regarded Ralph H. Baer as its founder. The first home video game system that he created and patented,  transformed televisions into electronic worlds. Mr. Baer and Sanders Associates in Nashua, New Hampshire filed the first vitro gismo patent in March 1971, which was granted in April 1973 as Patent No. 3728480 titled Television Gaming and Training Apparatus. Sanders Associates licensed its system to Magnavox, which launched the Odyssey as the first home video game console in the summer of 1972. In the first year, it sold 130,000 units.
Although the Odyssey was a commercial failure, its use of interchangeable cartridges opened the way for devices like the Atari 2600 (1977) and the Nintendo Entertainment System (1983).
In November 1972, Atari released Pong, the first arcade video game. Despite the fact that Pong gained more popularity than Odyssey. It was considered a patent infringement by Sanders and Magnavox right away. In 1974, they filed a lawsuit against Atari for violating their rights. By paying them $1.5 million, Atari reached a settlement with them and became Odyssey’s second licensee. Magnavox continued to sue additional corporations over the ensuing 20 years, ultimately recovering more than $100 million.

Video games have become more than just a ubiquitous pastime and a gigantic market. One of the most benefited industries from the pandemic is the video game business. According to statistical data, the video games segment's revenue is anticipated to reach US$197.00 billion in 2022 and is predicted to increase at a 7.67% CAGR from 2022 to 2027, with a market size of US$285.00 billion anticipated by that year.  Mobile Games will have the largest market in 2022, at US$152.50 billion. According to PwC's Global Entertainment and Media Outlook 2022-26, the global gaming industry is expected to be worth $321 billion by 2026.

According to a report by Lumikai, a venture capital fund with a concentration on gaming. The gaming market in India was estimated at $2.6 billion in FY 2022, and with a compound annual growth rate (CAGR) of 27%, it will be worth $8.6 billion by 2027. There were 120 million paying customers among the 507 million gamers in the nation in FY22. By FY 2025, there will be 700 million gamers worldwide, representing a CAGR of 12%.
India became the world's top consumer of mobile games in FY22 with 15 billion downloads. More than 900 gaming companies call it home. Mid-core games had the biggest rise in gaming income in FY22, increasing by 32% and bringing in $550 million overall. In terms of drawing VC investment totalling more than $2.6 billion into the Indian gaming industry, the past 28 months have been pivotal years. For the calendar year 2022, Indian gaming companies are on target to raise $513 million. According to the research, financing for the gaming industry has increased by 23% from 2020 and by 380% from 2019.

Game developers frequently take several years to build and release a new game since these endeavours require a lot of time, money, and effort. A video game is developed over a long period of time with great financial investment, and each one is only popular for a short while before being supplanted by the subsequent sensation. Therefore, it becomes important to ensure game developers receive the most commercial benefit and to prevent third parties from exploiting their ideas and reputation by launching similar feature games. It is essential to protect distinguishing components of the game such as game titles, characters, and designs. These IP rights also add value and make games and businesses more appealing prospects for potential investors. It also gives creators the opportunity to create new revenue streams by licensing the right to use their registered IP rights to a third party.
IP in Video Games.
Copyright: Original literary creations that are preserved in the tangible form are protected by copyright. This could apply to fresh content, artwork, or any other video game-related content that could be duplicated by others. The security it offers helps prevent the replication of such components, which may include the code, soundtrack, characters, or plot from a game. All software is protected by copyright. By imposing limitations on the end user, software licensing agreements safeguard the creator's copyright and intellectual property rights.
Trademark: The names and logos of gaming-related businesses and goods can be protected by trademark registrations. In this instance, Rock Star created the video game.
Patent: A game's innovative gameplay and accompanying technical solutions are both covered by patent protection. No other party is allowed to commercialise any product or process with technical features that are identical to those protected by the patent right since this type of intellectual property right only covers technical characteristics.

Piracy poses a threat to a sector that is so profitable and expanding, costing hundreds of millions of dollars annually in lost revenue from the sale of counterfeit goods. Recognising the types of IP rights that the creator may possess is the first step for game developers to take in safeguarding their intellectual property. Money can be tight for many in the sector, and technological advancements can come quickly, which can present numerous challenges. It's essential to develop a plan that works for a particular game, and timeliness might be key as each sort of intellectual property has consequences for failing to act by a given deadline.
Developers may maximise the financial potential of their innovations and put themselves in a good position to profit from a multibillion-pound market by taking the time to comprehend the pertinent forms of IP, finding experienced legal guidance, and putting protection in place as soon as possible. If game developers want to establish a fundamental advantage over all rivals, having adequate IP protection in place should be a top priority.


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