Alerts
- 8 May 2024
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Legal Framework for Games: Highlights of the New Brazilian Law for the Electronic Games Industry
On May 6th, Brazilian Federal Law no. 14852/24 was published in the Official Gazette and came into force. The law, coined the ‘Brazilian Legal Framework for Games’, establishes the legal framework for the electronic games industry. It originated from Bill no. 2796/21, approved by the Chamber of Deputies in April and later amended in the Senate.
The Brazilian Legal Framework for Games sets out principles and guidelines for the electronic gaming sector and promotes initiatives to overhaul the market and boost investments in innovation, as it recognizes electronic games as cultural activities.
The new Law not only regulates the manufacturing, importing, marketing, and development but also the commercial use of electronic games. In this regard, the law defines the following as ‘electronic games’:
- Interactive audiovisual works developed as computer programs in which images change in real-time in response to the player’s actions.
- Devices and accessories designed to operate electronic games for private or commercial use.
- Software used in mobile apps, web pages, video game consoles, and various forms of digital reality, such as virtual reality, which is available via download or streaming.
It is noteworthy that the Brazilian Legal Framework for Games does not apply to betting games. Therefore, said game providers will not benefit from the provisions of the new Law. Fantasy games, in which participants create virtual teams based on real-life players, are also excluded from the law’s scope.
Here are some of the law’s key highlights:
- The electronic games industry will benefit from incentives similar to those in the cultural sector, as outlined in Law no. 8313/1991 (Rouanet Law) and Law no. 8685/1993 (Audiovisual Law). Therefore, investments in developing electronic games are deemed research, development, innovation, and culture investments.
- Upcoming regulations on customs procedures and import duties for games, aimed at fostering innovation in the industry.
- There are special provisions for individual entrepreneurs and individual micro-entrepreneurs (MEIs) who develop electronic games.
Furthermore, under the new law, game providers must implement measures to safeguard children and adolescents. These guidelines include establishing reporting channels for minors to report online abuses and creating transparency in the complaints received and the actions taken. These measures may entail adjustments to the platforms and the Terms of Use for electronic games.
Moreover, the design, management, and operation of electronic games aimed at minors must adhere to the principle of comprehensive protection and prioritize the minors’ best interests. The default settings for in-game purchases must restrict children’s transactions, ensuring that a parent or legal guardian consents to such activities.
Under the Brazilian Legal Framework for Games, the Union will decide on the games’ age rating, considering factors such as risks associated with digital purchases. The new law does not require prior state authorization to develop and sell electronic games.
Finally, the President vetoed a provision that would have allowed companies investing in independent Brazilian games to write off a percentage of corporate income tax on overseas remittances because no budget or financial impact statement for fiscal benefit was submitted. This veto is pending Congress review in a joint session with representatives and senators.
Lefosse’s Technology, Data Protection, and Intellectual Property and Public Law and Regulation teams keep up with the changes impacting the market and are available to assist their clients with demands related to the gaming sector. For clarifications on the subject or others that may be of interest, please contact our professionals.
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