Strategic Legal Implications and Monetization of Intellectual Property in the Video Game Industry: New research project at the MIPLM
This thesis delves into the complex relationship between intellectual property rights (IPRs) and the video game industry, focusing on how key IP mechanisms such as copyright, patents, trademarks, and trade secrets are employed to protect video game components and drive monetization strategies. The primary objective is to analyze the most effective ways to leverage IPRs in the competitive, innovation-driven gaming market.
The thesis begins by examining how the video game industry has experienced remarkable growth, fueled by creative and innovative products. This growth has created a need for strong IP protection to safeguard investments and promote continued innovation. Companies must navigate a complex framework of IPRs to protect their brands, technologies, and content.
One of the core challenges video game companies face is managing various IPRs. Copyright, for instance, protects the creative elements of a game, such as characters, narratives, and audio-visual content. The thesis highlights the difficulties in applying copyright law across different jurisdictions, particularly in the US and EU, and how it has evolved to address the unique features of video games. Patents, on the other hand, protect technical innovations, including software, hardware, game mechanics, and algorithms. This section examines the patentability of novel processes that enhance gameplay and functionality. Trademarks play a pivotal role in establishing and protecting a company’s brand identity. In the gaming industry, strategic use of trademarks helps firms differentiate their products, enhance brand recognition, and capitalize on in-game advertising opportunities. Trade secrets, meanwhile, are essential for maintaining the confidentiality of proprietary information, such as game engines, development tools, and business strategies. Protecting trade secrets is critical for maintaining a competitive advantage and preventing rivals from gaining access to valuable, non-public information.
The thesis also explores how major digital platforms, such as the Apple App Store, Google Play Store, and Steam, manage IP infringement claims. This topic is particularly relevant for small and medium-sized enterprises (SMEs) that may lack the financial resources to pursue legal action independently. Additionally, the final chapter examines emerging revenue models, including hybrid casual games, in-game advertising, and loot boxes, and discusses the legal challenges involved in safeguarding these models from cloning and IP infringement.
The study concludes that a well-structured IP strategy is crucial for video game companies seeking to protect and monetize their assets effectively. By leveraging IPRs, these companies can build a “defensible fence” around their innovations, preventing competitors from encroaching on the same market space. Furthermore, the thesis provides insights into how companies can establish robust appropriation regimes and adapt to evolving business models, ensuring their competitive advantage in the digital marketplace.
This research project was conducted by MIPLM graduate Enes Talha Çetinkaya and supervised by Prof. Dr. Alexander Wurzer and Dr. Thibaud Lelong both CEIPI.
Enes Talha Çetinkaya is a Turkish attorney specializing in intellectual property law, with a focus on trademark prosecution and maintenance since 2020. In his current role at an international IP firm, he advises and represents both domestic and foreign clients across various legal matters.
Here is a description of the research project: