gaming | In Principle

In recent months, perhaps more than ever, life has moved online. Some people spend their time reading e-books or playing video games. Can they later resell or exchange such “used” works? A recent ruling by the Court of Justice throws into doubt the secondary trading in digital goods.

The instrument popularly known as the “IP Box,” introduced on 1 January 2019, allows taxpayers to claim a lower, 5% rate of corporate income tax or personal income tax in their annual tax settlements for income generated from commercialisation of qualified intellectual property rights they have created or developed through R&D activity. In this article we discuss how to benefit from the IP Box in the game development industry, who is eligible for the IP Box, and the conditions that must be met.

What could video games have in common with money laundering and terrorism financing? Not much, it might seem at first glance. The duties in the Anti Money Laundering and Counter Terrorism Financing Act are mainly addressed to entities involved in financial services, such as banks and payment institutions. The AML/CTF regulations don’t directly refer to video games or persons involved in their development and operation.

The trend toward advertising in online channels has grown for years, but video games are still not a popular ad platform. While large foreign entities are eager to exploit this opportunity (among game publishers such as Electronic Arts and brands like adidas, Coca-Cola and Daimler), it is harder to find examples of this type of cooperation among Polish entities.

The game development industry knows no boundaries, and often attracts workers from all over the world. But employment and immigration regulations pose a barrier to drawing on the resources of the global labour market, particularly when a game development studio considers employing persons in Poland who are citizens of countries outside the EU, the EEA, or Switzerland. However, new non-standard forms of work help overcome the difficulties in hiring foreigners, and are worth considering for roles such as programmers, graphic designers, sound engineers, script writers, and game testers.

The video game development sector has grown rapidly in recent years. With the spread of smartphones, new business models, and distribution platforms, the market for video games has taken off, becoming a key sector of the creative industry. Its growth stirs the imagination and appetite not only of game producers and publishers, but also of the biggest companies in sectors like IT and film, who are increasingly oriented toward the game market. It is also a promising field for investors, particularly from Asia. The industry’s growth has not even been slowed by the COVID-19 pandemic. To the contrary, the industry has taken advantage of this time to reinforce its position and achieve new growth.

Video game designers often place the narrative of their games in contemporary or historical times. This requires them to base elements in the game on items familiar from the real world, such as vehicles, clothing, jewellery, weapons, foods and electronics. Can such depictions be freely used in games, or is consent required?

Andrzej Sapkowski’s demands for more money for copyrights to The Witcher is the tip of the iceberg. Changes in the gaming industry, like increased production costs and the dominance of digital distribution platforms, will give rise to an increasing number of disputes, in particular over intellectual property rights. What could trigger these disputes and how can they be prevented?