As the Games Industry grows ever larger and as game engines’ modding tools become increasingly accessible to the average player, game modding is not just more common, but practically ubiquitous.


This presents a problem for both developers and the players who mod their games. In this article, we will be exploring whether video game mods qualify as copyright infringement (they do), and what exceptions exist (very few).

What are Video Game Mods? Who are Modders?

A “mod” is any program, asset, or other piece of software—not produced and distributed by the video game’s developer and/or publisher—which alters the mechanics, look and feel, or other content of a video game. This description tells us both too much, and not enough. Let’s get a little more specific.

When you hear about a video game mod, the mod was likely a player-made mechanical or cosmetic alteration to an existing game. A popular mod emerged for “The Elder Scrolls V: Skyrim” shortly after its release which caused dragons to instead appear as a positively horrifying image of the Macho Man Randy Savage. Star Wars Battlefront II mods allow players to alter the appearance of certain heroes to resemble other characters in the storied franchise.

Some make mods to gain an unfair edge in competitive multiplayer titles—typically referred to as “hacks”, but their use are as much video game mods as those discussed above in the sense that they are third party software which alters a game’s mechanics. A common example of this is the “money drop” phenomenon in “Grand Theft Auto V”. Other examples are when a player in a MOBA (a so-called multiplayer online battle arena) uses a third-party software to make their character invulnerable. Effectively, this kind of modding/hacking amounts to cheating, and is generally opposed by gamers for creating an unfair multiplayer community, and by developers for throwing a wrench in whatever monetization plan they have set for their multiplayer game.

Rarer, dedicated amateur game developers will attempt to remake a classic or retro game in a newer engine, or with updated visuals. The well-known examples of this concept which this blog article will discuss include:

  • Skywind”—a total conversion of “The Elder Scrolls III: Morrowind” into “Skyrim’s” engine.
  • Another Metroid II Remake or ‘AM2R”—a remake of “Metroid II: Return of Samus” in the visual style of “Metroid: Zero Mission”.
  • Black Mesa”—the now-released remake of the original “Half-Life” game in Valve’s Source 2 Engine.

Of these three mods, Skywind is still in active development and apparently condoned by the copyright holder (Bethesda Softworks), Another Metroid II Remake (AM2R) disappeared following a DMCA strike from the copyright holder (Nintendo Co., Ltd), and Black Mesa has been released to general acclaim and, amazingly, all profits go to the developers of the mod (Crowbar Collective), not the copyright holder (Valve, Inc.). Amazing, because this occurs in the overwhelming minority of mods and should never be assumed as a given.

Who decides which mods live and which mods die? Do developers and publishers have the power to condone modding, or to prevent it? To answer these questions, we need to understand when copyright infringement occurs, who is protected, and who is liable.

Making a Mod infringes on the Exclusive Right of the Copyright Holder to make Derivative Works

Let’s get the bad news (or good news depending on who you are) out of the way: Modding is copyright infringement as a matter of course. On its face. Period.

Let’s start, then, at the beginning. Copyright is a constitutional right, granted through the U.S. Copyright Act, and which gives the holder of the copyright a set of exclusive rights, meaning the holder can exclude anyone from using her/his rights in their work. These include the right to reproduce a work, the right to distribute a work through traditional channels of commerce, and the right to produce derivative works of whatever work is in question. And modding is exercising your (or infringing on one’s) right to make a derivative work.

So, what is a derivative work? Generally, a derivative work is a new work, but includes elements or evidence of the copyrightable aspects of previous works. To this end, we will use AM2R as an example. DoctorM64, amateur developer of AM2R, was creating a remake (or, in copyright terms, a derivative work) of “Metroid II” (with Nintendo’s assets, no less). But what if Nintendo wanted to remake “Metroid II” themselves? Without copyright law, DoctorM64, an individual who holds no rights to the Metroid intellectual property, would have beaten them to release and cornered the market. It’s easy to call Nintendo’s DMCA strike of AM2R an act of corporate greed, but Nintendo’s actions could just as easily be construed as a good faith attempt to protect their rights to the Metroid IP and the marketability of the “Metroid II” remake, which they did end up releasing one year after striking down AM2R.

In AM2R, we see how modding is, on its face, infringement. Whether you use original assets or not, a modder is still adapting a previously created copyrighted work in a way the rights-holder may enforce against—whether it’s a remake like AM2R, a hack, or a cosmetic mod. Further, United States courts will generally side with the rights-holder over the modder when issues over modding are litigated. Often, as in Blizzard Entertainment, Inc. v. Reeves, the modder will default in appearing before a court, or settle litigation before it gets too far. Why is this? It’s our favorite refrain: litigation is expensive and, if you are a single modder, it would be unwise and inefficient for you to attempt to out-maneuver a monolith like Blizzard in court.

What about Fair Use?

It is certainly possible but unlikely that a mod (whether free, only shared with your friends, or a parody) may be found to be a fair use under the so-named Fair Use Doctrine. Fair Use is used to argue that certain infringement is OK because it is, say, educational, satirical, or non-commercial. A mod, free or not, would still involve a modder’s use of copyrighted material to create a derivative work, and would most likely be outside of Fair Use’s scope. Furthermore, most modders will never even get a true Fair Use analysis from a court, as it is a litigation defense and (say it with me) litigation is really expensive.

Why do Skywind and Black Mesa get a pass?

A copyright-holder has the right to enforce the rights in their work, but they also have the right not to enforce as well. Therefore, a mod is “legal” only for as long as a rights-holder chooses to let it exist. There are good reasons to do this depending on a developer’s goals.

On one hand, Valve Inc, gave Crowbar Collective an unusually generous license for their remake of “Half-Life”, likely because Valve had been seeing such success with their digital storefront, Steam, and had not foreseeable plans to remake their game themselves. Again, this is exceedingly rare. If you are a modder, relying on this example to acquire a deal at a later point is negligent, to say the least, as you will most likely have created a mod in vain and may fall victim to litigation if you try to profit from it without a license.

Bethesda Softworks on the other hand encourages modding in an apparent strategy to foster and keep a community around their games beyond the games’ typical market lifespan. They even release dedicated modding tools for players to use with their single-player games. Many think that Skyrim owes its continued 9-year success at least partially to its vibrant modding scene. Given Skyrim’s success with modding, condoning Skywind (but which requires proof of purchase of both Morrowind and Skyrim) could be a no-brainer.

I’m a modder! What does this mean for me?

Well, the harsh answer is: either don’t mod at all, mod only for works where the rights-holder has condoned the practice, or keep your mod private instead of releasing it to the public (which is still infringement, but without anyone noticing it). If a rights-holder does not like your mod, then they can and will strike your mod down (via a cease and desist letter and a DMCA Take Down Notice most likely). Once that happens, there is not really anything you can do. If you want to release a mod of a game you do not own any copyright in, your best bet is to ask the rights-holder for permission.

What does this mean for developers?

It is largely up to you as rights-holder. If you want to prevent players from modding your game, then good news! The law is on your side and you have powerful legal tools like DMCA takedowns as a mechanism of defending your works. Or, you could be like Bethesda and foster a modding community around your games to extend their lifespan.

Note, however, that if you do release modding tools for your game, you will need to make sure you craft your End User License Agreement (EULA) with very clear restrictions and permissions to ensure that a modder (or, more importantly, a court of law) will know exactly what scope you intend for your modding community to occupy. For example, Bethesda’s EULA for “Skyrim” explicitly forbids the creation of mods for their game using any other software than the creation kit they provide on their website, using the license they specify. The EULA for “Skyrim’s” modding tools explicitly states clear restrictions for what mods may be made, and how they may be used (for example: no mods sold commercially, no mods which disparage Bethesda or its products). Rockstar’s general EULA which they use for all of their games disallows any kind of modification for their games whatsoever by anybody but Rockstar. A clear EULA and legal notices are grounds for effective and transparent community management as well even outside the intellectual property sphere. As rights-holder, you get to decide how you want your intellectual property to be used but keeping what you own safe starts with a good EULA. So, get planning, and get typing!


First posted on July 29, 2020; Authors: Edward Baxter and Daniel Koburger

Dutch consumers are suing Sony over the argument that Sony controls about 80% of the console market in the Netherlands and abuses its dominant market position.


Ultimately, the Dutch consumer group Stichting Massaschade & Consument, representing 1.7 million Dutch Playstation users, makes the same claim that the regulators are making against dominant tech platforms like Apple and Google, who wield market abusive, and likely illegal, powers over digital ecosystems.

Uniquely here, the case represents the consumer’s fight for fairness following the February launch of the “Fair PlayStation” campaign that criticizes the Sony tax” where digital games are allegedly priced up to 47% higher despite lower distribution costs. The lawsuits, if successful, could not only force Sony to compensate affected users, it would also open Sony to third party game stores and prove a vital cornerstone in the developer’s fight for market access against big corporations.

What Happened?
Sony’s digital ecosystem is closed by design: PlayStation users can only purchase games and add-ons through the official PlayStation Store, while third-party resellers like Amazon or Green Man Gaming are completely excluded. This gives Sony complete control over pricing and distribution, along with a standard 30% commission on all digital sales.

This setup results in limited consumer choice and higher prices - commonly referred to as the “Sony Tax.” While physical PlayStation games remain available through retailers with competitive pricing, the same is not true for digital content. Sony sells two PS5 models: a Standard Edition with a disc drive and a Digital Edition without one. Owners of the Digital Edition are fully locked into Sony’s digital-only ecosystem. Additionally, since 2019, Sony has banned third-party sales of digital game codes, preventing developers from offering their games directly or through alternative platforms.

What This Means for Game Developers?
Sony’s digital policies tightly restrict how developers can price, promote, and distribute their games. Independent discounts, regional pricing, and time-limited promotions all require Sony’s approval, while selling digital codes through developers’ own websites or third-party platforms is prohibited - practices common on PC and Xbox.

This creates a single point of access - the PlayStation store - where visibility and revenue opportunities are tightly controlled. Placement depends entirely on Sony’s algorithm and editorial discretion - a barrier for many indie and mid-sized studios. With no option to drive external traffic or leverage affiliate marketing, discoverability becomes yet another gate that only Sony can open.

This lack of alternative sales channels leaves developers fully exposed to Sony’s standard 30% commission, with no way to offset it through direct sales or discounted offers, limiting both pricing flexibility and growth potential compared to other platforms.

Is the “Walled Garden” and “Sony Tax” illegal?
Under EU competition law, companies with a dominant market position are strictly prohibited from abusing that power to the detriment of consumers or competition. The key legal provision is Article 102 of the Treaty on the Functioning of the European Union (TFEU), which bans abusive practices such as excessive pricing and unfair trading conditions. Dutch law reflects this through Article 24 of the Dutch Competition Act, which mirrors the principles of Article 102.

Legally, the Dutch Consumer Foundation argues that Sony controls about 80% of the console market in the Netherlands and has abused this dominant position by restricting developers and resellers from offering digital PlayStation games outside the PlayStation Store. They claim this has created an artificially closed market that inflates prices and harms consumer choice. According to their research, digital PlayStation games can cost up to 47% more than physical copies.

If upheld in court, this pricing model could be considered excessive pricing under Article 102 TFEU - a form of exploitative abuse - particularly if Sony’s digital prices are found to significantly exceed what would be expected in a competitive market.

Beyond Article 102, the EU’s Digital Markets Act (DMA), which came into effect in 2023, introduces new rules targeting large online platforms classified as “gatekeepers,” including Sony’s PlayStation Store. The DMA mandates fair and transparent pricing, prohibits self-preferential treatment, and aims to foster cross-border competition within the EU’s digital single market. This legislation enhances regulatory oversight and restricts the kind of closed ecosystem Sony has built around digital game sales.

What’s Next?
The first court hearing is expected later this year, beginning with the Dutch court assessing whether it has jurisdiction and whether the consumer foundation can represent the class. Cases like this can take several years to resolve, especially if appeals follow an initial ruling.

If the court ultimately grants the claims, the foundation expects that Sony could be required not only to open its platform to third-party digital game sellers, but also to compensate millions of Dutch consumers for alleged overcharges. A ruling in favor of the plaintiffs could also set a legal precedent for similar lawsuits in other EU countries, putting further pressure on Sony - and possibly other platform operators - to reform their digital distribution models.

While Sony is battling similar cases also in England and Portugal, this case arrives at a moment of mounting political will to rein in digital gatekeepers. With laws like the EU’s Digital Markets Act (DMA) already targeting tech giants like Apple and Google, Sony may now find itself drawn into a broader regulatory push for platform accountability and consumer and game developer choice. Whether driven by regulators or consumers, the message is becoming clear: the era of closed ecosystems is under challenge.

In 2024, the total value of mergers and acquisitions was approximately $1.7 trillion US dollars. It is an undeniable fact that mergers and acquisitions bring in economic benefits.


As such, whenever there is a change of administration, interested parties are on the lookout to see how mergers and acquisitions will be impacted by the new administration. Therefore, the question is whether mergers and acquisitions will be affected under the new Trump administration.

Historical Context

During Trump’s first term (2017–2021), his approach to mergers and acquisitions (M&A) shifted from pro-business and lightly regulated to stricter enforcement, with 2020 seeing more merger challenges than any year under the Obama administration. Trump’s interventions often seem to have reflected personal and political motives, such as opposing the AT&T–Time Warner merger, which was linked to CNN. Meanwhile, he supported Disney’s purchase of 21st Century Fox, owned by ally Rupert Murdoch.

After his 2024 reelection, many expected renewed deregulation and the repeal of Biden’s 2023 Merger Guidelines. Yet, nearly a year into his second term, those guidelines remain, and M&A activity has seen little growth, as evidenced by the 4,535 deals recorded between January and May 2025, similar to the previous year. Analysts attribute the slowdown to economic and policy instability, particularly shifting tariffs. However, the passage of the One Big Beautiful Bill Act (OBBBA) is expected to revive the M&A market.

Changes During the Current Administration

The OBBBA is expected to help the M&A market, especially in the energy, financial and industrial sectors. Furthermore, the OBBA reinstates a “100% bonus depreciation for certain assets, generous interest deductibility and, crucially, no new carried-interest curb. This should mean there are more tax shields, more debt capacity, and a relative valuation boost for asset-heavy U.S. companies.”

Advantages Under the One Big Beautiful Bill Act

The OBBBA includes a 100% bonus depreciation, which essentially means that if a buyer acquires a business with many fixed-assets, they may deduct much of the cost faster. This would improve the after-tax cash flow for the buyer.

Furthermore, the OBBBA now includes an enhanced business interest deduction of 30% of EBITDA. Previously, the business interest deduction was capped at 30% of EBIT. With the inclusion of depreciation and amortization, taxpayers will now be able to deduct more interest. Also, this would mean that there is a greater tax benefit from using debt in an acquisition.

Finally, the OBBBA also included changes to the Qualified Small Business Stock (QSBS) regulated under Section 1202 of the Internal Revenue Code. C Corporations with less than $50 million of gross assets have historically qualified for this benefit. Under the OBBBA, the gross asset cap has been increased to $75 million, making more businesses eligible. Previously, taxpayers could exclude $10 million in gains, now that number has increased to $15 million.

Risks

The OBBBA notably addressed the international corporate tax regime, specifically the Base Erosion and Anti-Abuse Tax (BEAT). The countries that are subject to BEAT will see an increase of 0.5%, now paying 10.5% instead of 10%. Past drafts of the OBBBA, included the BEAT at 12% in the now discarded Section 899.

While the initial drafts of the OBBBA, specifically Section 899, included more tax increases for international corporations, this reflects an ongoing sentiment of promoting domestic growth at the sake of international corporations wishing to invest.

Practical Guidance

Any company considering a merger or acquisition of an American company must be aware of legislative changes that may occur within the Trump administration.

Anyone considering a merger must know that the provisions of the OBBBA favor acquisitions of business with fixed-assets and that the acquisitions be financed via debt. Opting for acquisitions in this way and those in Trump’s preferred sectors, are the best way to take advantage of the current administration’s stance on mergers and acquisitions.

Foreign investors and buyers, however, must be mindful of OBBA’s intent and potential future legislative changes negatively affecting their cross border transaction. While the original draft of the OBBBA only included, but did not pass, a proposed revenge tax on certain foreign persons who would be determined by the U.S. Treasury, it is important to remember that at its core, OBBBA is meant to favor domestic growth. As such, it is likely that any new laws will also follow suit which may negatively impact cross border transactions.

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