Ever wonder how countless candy crush games can co-exist, or how developers have gotten away with cloning popular video games over the years?


That is because “clones” are (mostly earnest or, with a lot of good faith, can be viewed as) attempts to expand on gameplay ideas, and it is not legally possible for a single developer or company to own gameplay elements or even a whole genre. That is a result of copyright law’s purpose to only protect the unique expression of ideas, and never the ideas themselves – and a video game genre is an idea as opposed to an expression. Actually, imitation of gameplay ideas and genres is encouraged by Intellectual Property Laws so long as developers add their own spin on it. For at its core, copyright law incentivizes the creation of new works. Generally, this is good news as otherwise, we would be limited to only a few first-person shooters, role-playing games, racing games, etc., and such a lack of creative flexibility would be stifling for both developers and gamers.

What’s a genre, what’s an idea, and what do they have to do with games and copying gameplay

A video game genre is an idea. It is made up of so-called “tropes” and “scenes a’ faire,” without which a genre-specific game cannot be developed. In other words, a game genre is made up of specific and typical rules, mechanics, and gameplay elements, in addition to many other types of genre-specific and necessary elements that relate to elements like arche types, graphics, UI, etc. – the latter of which we will talk about another time. To exemplify, the basic gameplay of a fighting game (i) is to hit while not being hit; (ii) likely revolves around martial arts’ moves, with specific offensive and defensive maneuvers; (iii) between two or more opponents; (vi) displays a color-changing vitality bar at the top of the screen; and (v) the fighters from a side view, to name only a few elements that “make” the genre, and are considered part of the unprotectable idea. In contrast, it is the various, creative expressions of this general idea that enables a wide range of fighting games to exist. Each game has their own characters; their own story lines; their own different offensive and defensive moves; and so forth, etc. – you catch the drift. Essentially, its own unique way of combining the rules and mechanics, as well as all other components of the video game.

Copying can and cannot be infringement; Where are you on the scale?

Unfortunately, it isn’t all that simple: First, there is no legal definition of what is a mechanic and a rule; second, a judge would even less likely know what they are; and third, even if they were to know, it’s not as simple as: copying mechanics = no infringement. Rather, each situation must be looked at on a case by case basis. In certain cases, copying mechanics and rules could be infringement and in others it could not. That is because copyright protects the unique expression, which is reflected in the overall look and feel of all the elements involved, from infringement by substantially similar expressions. In other words: you can make your game based off an idea by using genre-specific elements, but you can’t use all of these elements together in such a specific arrangement that it resembles closely that of another game’s rules, mechanics, and gameplay elements. In short: You can’t copy and paste and then defend yourself with “I am only using genre-specific elements.” However, finding out where you end up lying on this scale, either all the way on the left, i.e. on the copying-an-idea side, or all the way on the right, i.e. on the you’ve-copy-pasted-the-unique-expression side, is a difficult task.

Other problems out there: Suing is a big unknown and expensive, and what about patents?

The difficulties of understanding where a game lies on this scale have several roots beyond copyright law’s homemade problems. One issue, which is beyond the scope of this blog, lies with the law’s uncertainty as to whether mechanics and rules are functional elements and therefore entirely outside of the realm of copyright, and only protectable by patents. Another concern lies with courts and judges’ inexperience with understanding video games and the expense of lawsuits if there is a difficult, unsolved question at hand. Because of that, there are limited samples of courts giving guidance to understanding how to handle this scale.

However, there have been circumstances, albeit rare, in which courts have determined that the scale has been tipped to the point of actually copying the unique expression of a game. By way of example, a claim against Fortnite: Battle Royale was dropped because it was clear that Epic Games had only copied the idea of the Battle Royale genre; whereas a federal court found that Tetris’s unique expression had in fact been copied by a Chinese developer and therefore found the developer liable for copyright infringement. The differences lie in what exactly was copied from the original game, and what (or the lack therefore) was added to create a novel way of expressing the same idea.

PUBG vs. Fortnite

At the beginning 2018, the creators of PlayerUnknown’s Battlegrounds (“PUBG”), Bluehole, filed for an injunction against Epic Games, claiming that Epic had copied PUBG’s game items and user interface (UI) in their subsequently released Fortnite: Battle Royale (“Fortnite”). According to Bluehole, Epic Games was liable for copyright infringement because some aspects of the new Fortnite mimicked that of PUBG: Both open with 100 players parachuting out of an airplane onto an increasingly shrinking island to duke it out until there is one sole survivor. It didn’t help that Fortnite’s own trailer proclaimed that the game was is in fact inspired by PUBG. However, Bluehole dropped their claim against Epic Games by the middle of the year.

Why didn’t this even make it to court? Because the only thing that Epic Games was “guilty” of was creating a game within the Battle Royale genre. The concept of the Battle Royale genre – last man standing on a shrinking island littered with enemies and weapons – is not new. In fact, it is actually derived from the Japanese cult-classic film “Battle Royale,” in which dozens of high-school students are placed on an island by their totalitarian government, given weapons, and forced to kill one another until only one person remains. And while the makers of PUBG may have released their battle royal video game before Epic, they cannot stop Epic nor anyone else for that matter from making its own version of the idea, so long as they haven’t amassed enough similarities to shift too far on the scale as to copy the unique expression of PUBG.

And Epic’s unique take on the genre is exactly why the look and feel of their version varies greatly from that of Bluehole’s: Fortnite’s cartoonish atmosphere creates a goofy undertone, which is starkly different from the somber, dire tone of PUBG; Fornite is a third-person shooter, whereas PUBG is a mixed first-person/third-person shooter; and there is a building aspect to Fortnite that PUBG doesn’t have: effectively constructing and destroying structures is a crucial survival component of Fortnite, while in PUBG players have no such option. These unique aspects of Fortnite is Epic’s creative way of expressing their own version of a Battle Royale videogame. And because Epic only reused the rules and mechanics of the Battle Royale genre while expressing it in a different manner, Bluehole’s copyright infringement claim was very likely a losing argument which would have been a huge waste of time and money to follow through with.

Tetris v. Xio – the difference between an idea and the expression of an idea

In contrast, Tetris Holding v. Xio Interactive illustrates what it looks like when a subsequently released game copies the unique expression of another and thus found to be liable for copyright infringement. In this case, the owner of the immensely popular video game Tetris, Tetris Holding, brought suit against defendant Xio Interactive, Inc. for copying their original expression of Tetris’s game play in their game Mino. Here, the court was able to distinguish between Tetris’ genre – a puzzle game where the user manipulates pieces of falling blocks to create horizontal lines – and the ways Xio deliberately copied Tetris’s unique expression. The court found Mino to be identical to Tetris in ways beyond its basic unprotectable genre: the style of the pieces in both games were nearly indistinguishable in both their look and the way they moved, rotated, fell, and behaved; both games’ screen borders were composed of identical bricks (same texture and bright colors); the dimensions of both of the games’ playing fields were the same; both had a preview of the next piece about to fall; both games’ pieces changed to the exact same color when they were locked with accumulated pieces; and both games’ playing fields’ automatically filled in the exact same way when the game was over. The court clarified that: “[n]one of these elements are part of the idea (or the rules or the functionality) of Tetris, but rather are means of expressing those ideas.” Because Xio had chosen to copy Tetris’s specific and deliberate design choices despite the “almost unlimited number of variations that were available to it,” so much so that the two games were nearly identical and all but indistinguishable to the common observer, the court found Xio liable for copyright infringement.

Takeaway

Although most developers are able to limit their copying to a specific genre’s mechanics and rules while contributing their own creative expressive elements, the issue of copyright infringement may arise if there are too many similarities between the way the overall idea of the game is expressed, especially if there were easily other ways to express the same idea. Remember, while copyright law may seem to protect only the narrow spectrum of unique expression, there is a limit as to how far a game developer may go when creating a new game that is inspired by a previously released game. Essentially, if you create a game by mimicking other games within the same genre but put your own spin on it, like adding creative visual elements and developing strong, unique characters that set the game apart, you may be copying the gameplay and idea, but you wouldn’t be liable for copyright infringement because it would be considered your own expression of that genre.

Author: Jennifer Kleinman and Daniel Koburger

First Published: 07/08/2020

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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