Video games and monetisable digital items: the role of the lawyer

The world of gaming is undergoing a profound transformation with the emergence of monetisable digital items. This revolution, driven by blockchain technologies and innovative economic models, offers new opportunities to developers and players, but also raises significant legal questions.

In this constantly evolving environment, support from a lawyer becomes a strategic asset for navigating this new ecosystem in complete security.

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The emergence of monetisable digital items: a shifting paradigm

The concept of monetisable digital items refers to virtual assets integrated into video games that can be acquired, traded or sold by players. These assets take various forms: avatar equipment, characters, virtual land, or cosmetic items. Their distinctive feature lies in their real economic value, which extends beyond the closed environment of the game.

Several economic models structure this new ecosystem:

• Play-to-Earn (P2E), which enables players to generate income by playing
• NFT Gaming, which incorporates non-fungible tokens as in-game items
• Metaverses, which create complex virtual economies with their own markets for digital assets
• Loot boxes and other chance-based mechanisms offering virtual rewards of variable value

The strategic insight of a legal professional proves particularly valuable in understanding the specific legal implications of each model. A lawyer specialising in video game law analyses game mechanics through a legal lens, identifying potential reclassification risks and the regulatory obligations applicable depending on the territories targeted.

Legal grey areas and regulatory risks

Incorporating monetisable digital items into video games creates zones of legal uncertainty where several regulatory frameworks overlap.

The risk of reclassification as gambling or a game of chance

The boundary between video games and gambling becomes blurred when mechanisms allow virtual items to be converted into real monetary value. This blurring exposes developers to a major risk: the reclassification of their game as gambling or a game of chance, with the draconian regulatory consequences that follow.

In France, the recent law of 21 May 2024 introduces a regulated trial period for games offering monetisable digital items obtained by chance, but sets strict conditions, in particular the prohibition of direct conversion into legal tender.

The preventive legal expertise of a lawyer for online games constitutes an essential safeguard against this reclassification risk. Through a meticulous analysis of game mechanics and the associated economic flows, the lawyer assesses the model's compliance with case-law and regulatory criteria, making it possible to adjust the game's design upstream in order to avoid legal pitfalls.

Consumer protection issues

Consumer protection obligations apply fully to the video game economy, with heightened requirements in the context of monetisable digital items:

• Transparency regarding the probabilities in chance-based mechanisms
• Clear information on the conditions for acquiring and using digital items
• Protection against misleading commercial practices
• The right of withdrawal and its specific limitations applicable to digital content

The operational support of legal counsel turns these constraints into trust factors for your community of players. A lawyer draws up robust general terms of use, designs purchasing interfaces that comply with legal requirements and develops balanced refund policies, protecting both your commercial interests and consumers' rights.

Protection of minors: a central concern

The growing presence of minors in the gaming ecosystem raises particularly sensitive legal issues when monetisation mechanisms are involved. The French law of 2024 in fact restricts access to games offering monetisable digital items to adult players only, with an obligation of strict age verification.

The forward-looking vision of a lawyer enables you to anticipate these constraints by implementing robust age-verification systems, adapted to regulatory requirements while preserving the user experience. Their expertise also guides you in designing ethical game mechanics, limiting the risks of addiction and excessive spending by young players.

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Legal issues specific to monetisable digital items

Beyond the general questions of video game law, monetisable digital items raise specific legal issues that require specialised expertise.

Intellectual property and players' rights

One of the most complex legal debates concerns the exact nature of the rights granted to players over the digital items they acquire. Unlike physical goods, these virtual assets exist within an environment controlled by the developer, raising fundamental questions:

• Do players really own their digital assets, or do they merely hold a licence to use them?
• What rights remain if the game is shut down or if the developers change the rules?
• How can creators' intellectual property be protected while guaranteeing certain rights to players?

The targeted legal expertise provided by a lawyer specialising in digital and gaming law makes it possible to structure these complex relationships clearly. The lawyer draws up balanced contractual frameworks, precisely defining the rights granted to players while preserving your creative freedom and your operating prerogatives. This legal clarification constitutes a major competitive advantage in a market where user trust is decisive.

Taxation of monetisable digital items

The economic dimension of monetisable digital items raises significant tax questions, both for developers and for players. The tax classification of these assets remains uncertain in many jurisdictions, oscillating between intangible goods, digital services or, in some cases, digital assets comparable to cryptocurrencies.

The strategic tax support offered by a lawyer enables you to optimise your economic model lawfully. Working alongside chartered accountants, the lawyer structures your financial flows so as to comply with your reporting obligations while avoiding over-taxation. For platforms facilitating exchanges between players, the lawyer also develops information mechanisms compliant with tax reporting obligations.

International regulatory compliance

The inherently cross-border nature of online games considerably complicates regulatory compliance. The laws applicable to monetisable digital items vary significantly from one country to another, with some adopting progressive approaches and others imposing drastic restrictions.

Territorial legal planning constitutes one of the major added values of a lawyer for online games. Thanks to their knowledge of international legal regimes and their developments, the lawyer designs a deployment strategy tailored to your commercial ambition. This approach may include territorial adaptations of your economic model, targeted geographical restrictions, or partnerships with local entities to facilitate compliance.

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The essential role of a lawyer for online games in your strategy

Faced with the complexity and rapid evolution of the legal framework applicable to monetisable digital items, support from a lawyer represents far more than a compliance exercise: it is a genuine competitive advantage.

Preventive legal protection

The preventive approach is the most efficient way to avoid costly litigation and regulatory deadlocks. A lawyer for online games ideally intervenes from the design phase onwards in order to:

• Analyse the compliance of game mechanics with the various applicable regulations
• Structure contractual relationships with players, partners and service providers
• Design age- and identity-verification processes that comply with legal requirements
• Develop an intellectual property strategy that protects your creations while securing digital asset transactions

The added value of anticipatory legal counsel lies in their ability to incorporate legal constraints as design parameters, thereby avoiding costly redesigns after launch. This proactive vision turns legal expertise into a catalyst for responsible innovation.

Ongoing operational support

Beyond the initial phase, a lawyer supports you throughout the entire life cycle of your game, adapting your legal strategy to the evolution of the product and of the regulatory framework:

• Regular updating of contractual documents and legal notices
• Targeted legal monitoring of regulatory developments affecting your model
• Management of relations with regulatory authorities (ANJ, CNIL, DGCCRF)
• Support in handling user complaints with a legal dimension
• Securing of marketing operations and commercial communications

The agile legal support offered by a lawyer specialising in online game law makes it possible to continually adapt your compliance strategy without hindering your innovation momentum. Their in-depth knowledge of your product and its specific challenges enables them to quickly identify emerging risks and respond to them proportionately. With regard to the protection of personal data, working with a lawyer specialising in CNIL matters guarantees compliance with the GDPR.

Litigation management and defence of your interests

Despite preventive measures, contentious situations can arise, involving dissatisfied players, regulatory authorities or competitors. In such circumstances, representation by a lawyer with in-depth knowledge of your sector constitutes a decisive asset.

The expert legal protection of a lawyer well-versed in the specific features of online game law guarantees you an informed and effective defence. Their command of case law specific to the sector and their ability to explain complex game mechanics to judges often makes it possible to defuse situations potentially damaging to your reputation and your business.

Making the law an ally of your innovation

In the dynamic and complex ecosystem of games incorporating monetisable digital items, legal expertise should not be seen as a constraint but as a genuine strategic lever. By transforming regulatory requirements into opportunities for responsible innovation, a lawyer contributes directly to building a sustainable economic model and to the trust of your community.

To go further in securing the legal aspects of your projects involving monetisable digital items, please feel free to consult our expertise in this field. Our firm has in-depth knowledge in supporting gaming industry players, combining mastery of technological issues with a thorough understanding of national and international regulatory frameworks.