Legal Trends to Watch in 2025: A Regulatory Update

At the beginning of the year, we made some predictions about the legal trends for 2024. Now it is time to review our predictions and make new ones for 2025. We dropped some topics this year, such as Metaverse and NFTs, as we did not predict any major developments, and they did not materialize. However, we still have a lot to cover, so let us proceed. One of the topics we predicted was the rise of AI-created game code and databases. We also expected that game companies would continue to explore other uses for AI. Indeed, AI is ubiquitous, and all our predictions have come true, albeit at a slower pace than we anticipated. In the US, there are numerous legal disputes related to AI, but Europe is still lagging behind. However, two notable cases are worth mentioning: the Hamburg Regional Court ruled that the training of AI does not infringe on copyright, and the Prague Municipal Court decided that an image created by an AI system cannot be protected by copyright. The EU has passed the EU AI Act, which imposes significant obligations on companies, including the need to disclose when users interact with AI and to mark AI creations. This act will become applicable in 2026, but its impact will be felt sooner. In 2025, the discussion around IP and AI will continue to be a double-edged sword for game companies. On the one hand, AI can be used to create assets, game worlds, and inspiration. On the other hand, leading AI systems can produce images that reproduce game IP, raising concerns about copyright infringement. Riot Games Dan D. Nabel expects more developments in copyright and AI litigation, particularly with regards to fair use. The EU does not have a fair use doctrine, but its copyright law has a text and data mining exception, which may provide some guidance. The EU AI Office is working on a General-Purpose AI Code of Practice, which will address issues like copyright and transparency. We also expect more guidance on AI and data protection, particularly in light of the Hamburg data protection authoritys discussion paper on large language models and personal data. In addition to AI, we predicted that game companies would work to become compliant with the Digital Services Act (DSA) by the February 17, 2024 deadline. The European Commission targeted large online platforms, but no game or game service has been designated as a very large online platform yet. Game companies are still trying to navigate the multiple layers of obligations and duties under the DSA. The authorities will start to take a closer look at popular games and ask companies for more information. The EU Commission plans to publish guidelines on protecting minors in 2025. We also predicted that consumer protection would become a significant issue, particularly with regards to premium in-game currencies and virtual goods. The European Consumer Organisation (BEUC) has accused major game companies of misleading consumers into spending money. The BEUC complaint highlights the need for prices to be displayed in real-world currency, not just virtual currency. The EU is concerned about the use of intermediate in-app virtual currencies, which can distort the real value of transactions and encourage consumers to spend more than they intend. In 2025, the renaissance of consumer law enforcement against game companies will continue. Many cases will be settled behind closed doors, but consumer organizations are prepared to go to court if necessary. The European Commission may propose a new Digital Fairness Act, which could have significant implications for the industry. Other topics we predicted include the rise of dark patterns investigations, loot box bans, and the importance of IP disputes. While some of these predictions did not materialize, they are still relevant and will continue to be important in 2025. Finally, we predicted that match-fixing and cheating would remain significant issues in esports. While there were not as many discussions on esports betting as we expected, Riot Games has allowed its partnered esports teams to have betting sponsors. The International Olympics Committee has announced Olympic Esports Games in 2025, which will take place in Saudi Arabia. In conclusion, 2025 will be a significant year for game companies, with many regulatory updates and legal developments on the horizon. Companies must stay ahead of the curve to ensure compliance and avoid potential pitfalls.