Navigating the Legal Landscape of Gaming and eSports in India: IP, Licensing, and Compliance

1st April, 2025 - 8:58 am Categories: Design Registration in Noida Intellectual Property Protection IP Licensing IP Litigation IP Practice in India 0 Comments

1. Intellectual Property Rights in Gaming

Video games in India are covered under the Copyright Act, 1957, as “cinematographic works” because they have audiovisual content. This protects game code, characters, and narratives. For instance, copying game mechanics without authorization could be a copyright infringement.

1. Trademarks: Names of brands, logos, and in-game symbols (e.g., PUBG’s “Winner Winner Chicken Dinner”) can be registered as trademarks so that they cannot be used by others.
2. Patents: Innovative hardware for games, for example, virtual reality controllers, can be patented under the Patents Act, 1970.
3. Industrial Designs: Special game interfaces or console designs are registered under the Designs Act, 2000.
4. Software Copyright: The software code of a game can be register and therefore protected under the copyright regime.
5. Crowdfunding sites such as Kickstarter have democratized IP ownership from publishers to creators, promoting independent game development. Uncertainty regarding regulations for NFTs and in-game assets continues to be a problem, though.

2. Licensing Agreements and Regulatory Requirements

Conducting business lawfully in India means dealing with patchworks of state and central legislation:

Game-Specific Licenses:

• Skill-Based Games (e.g., fantasy sports): Need state licenses (e.g., Nagaland’s 2015 Act).
• Chance-Based Games (e.g., poker): Prohibited in most states but legal in Sikkim under the 2008 Online Gaming Act.
• GST Registration: Required for firms with a turnover of more than ₹20 lakh (₹10 lakh for northeastern states). Games of skill are subject to 18% GST, and chance-based games to 28%.
• Self-Regulatory Bodies (SRBs): Amended IT Rules 2021 require gaming platforms to register with SRBs for the certification of games as allowable. SRBs verify compliance with anti-money laundering (KYC) and consumer protection standards.

3. eSports Regulatory Compliance

eSports, being a “multi-sport event” under the Ministry of Youth Affairs and Sports, presents distinct challenges:

• Constitutional Jurisdiction: Sports are included in the State List, but eSports’ online character makes regulation tricky. Proposed recent amendments suggest putting eSports in the Concurrent List to allow for central regulation.
• Advertising Standards: Platforms need to steer clear of encouraging gambling or deceptive statements. The Advertising Standards Council of India (ASCI) requires transparency in disclosure of in-game purchase probabilities.
• Data Privacy: Adherence to the Digital Personal Data Protection Act, 2023 is paramount in keeping user data secure.

4. Recent Legislative Changes

IT Rules 2021 Amendments:

• Wagering prohibition in skill games.
• Physical address requirements for gaming intermediaries.
• Co-Regulation Model: SRBs comprise government nominees to strike a balance between industry ingenuity and concerns for public health (e.g., addiction check).

India’s gaming and eSports industry is on the brim of explosive growth, but legal intricacies require proactive compliance. Stakeholders need to focus on IP protection, acquire state-specific licenses, and keep pace with changing regulations such as SRB regulation. With the government looking to mainstream eSports as a sport, harmonization of state and central laws will be critical for sustainable growth of the industry.

Author- Aditya Sutaone, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney.

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