NEWS AND PUBLICATIONS

Today was approved the law that creates a legal framework to regulate the electronic games industry in Brazil. Under the new law, the definition of electronic games includes:

  • Interactive audiovisual work developed as software, with images changing in real time through player interaction;
  • Physical devices and accessories that run electronic games (Consoles);
  • Software for applications, web pages, videogame console games, virtual reality, either by download or streaming. Please note: Sweepstakes, commercial promotions, any games that involve betting or random results to receive prizes will NOT be considered electronic games under the new regulatory framework. Regulatory provisions for this type of application are found in Law 14.790/23 (“Lei de Bets”).

Attention: Sweepstakes, commercial promotions, any games that involve betting or random results to receive prizes will NOT be considered electronic games within the new regulatory framework. Regulatory provisions for this type of application are found in Law 14.790/23 (“Bets Law”).
Key points of the legal framework:

  • The development of electronic games is now a target for promotion in the legal system, being considered a segment of “culture”, becoming eligible for incentives granted for innovation, development, and culture.
  • Benefits are provided for investors in the segment, who will be eligible for tax deductions under Brazilian legislation governing investment in cultural and audiovisual projects, such as the Rouanet Law and the Audiovisual Law.
  • For example, the Legal Framework offers a reduction of up to 70% of the tax due on remittances abroad related to the exploitation of electronic games or licensing – if they invest in the development of independent Brazilian projects.
  • Electronic games should contain, by default, restrictions on purchases and commercial transactions by children, guaranteeing the consent of those responsible for the education of minors.
  • The design, management and operation of electronic games accessed by children and adolescents should be based on the best interests of children and adolescents.
  • Electronic game providers should ensure that their services, systems, and related official communities do not foster or create an environment conducive to any form of discrimination or abuse against or between children and adolescents.
  • Game developers must create a system to receive and process complaints and reports of irregularities and abuses committed in their digital environment and provide transparency about the entire process of how they deal with this (including categories of violation, methods used for analyzing complaints and moderating content, mitigation measures adopted, sanctions applied to violations, among other aspects).
  • The terms of use should be adapted to prohibit practices, content exchanges and interactions that violate the rights of children and adolescents, in accordance with Brazilian legislation.
  • A specific intellectual property (IP) right has been created for electronic games (registration of electronic games). This new IP right can be used independently or in conjunction with other rights commonly used to protect IP in electronic games: copyright, trademarks, industrial designs, patents, and unfair competition.
  • There is still a need for additional rules to establish the requirements and procedures for granting the registration of electronic games, as well as their scope of protection.
  • By creating additional and specific protection for games, Brazil will provide more tools, options and incentives for companies and other market players to protect their creations and assets in the country.

The Business Transactions, Technology, Privacy and Data Protection, and Patents teams are available to answer questions and provide support on issues related to this topic.

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