In late September 2024, California law introduced a ban on the use of the term “purchase” for subscription-only services, free-to-play games, and digital goods that offer “permanent offline downloads to an external storage source to be used without an internet connection.”
The essence of the law is that if a game can be played offline, it cannot be considered “purchased.” This clarification is primarily terminological: sellers of digital goods cannot use terms like “buy,” “purchase,” or any related terms that imply ownership transfer of the digital good. Instead, they must clearly state that the digital good is provided under a license and include a link to the terms and conditions. The law aims to combat growing cyber fraud and abuse. However, companies like STEAM are concerned that this regulation could negatively impact their marketing and sales, despite its good intentions.
Why Is It Incorrect to Say I’m “Buying a Video Game”?
Even though video games often come in a physical format, they encompass various intellectual property rights, such as copyrights. By purchasing a game, users do not acquire ownership of those rights—they simply obtain the right to use the game, typically for personal enjoyment. In the context of intellectual property, this use is governed by licenses, which regulate how rights are transferred, used, or restricted.
Why Does STEAM Oppose the Ban on Certain Terminology, Despite Its Legal Accuracy?
By 2024, video games have become one of the most popular forms of entertainment, with over a billion users worldwide. While consumers are not necessarily required to understand the legal intricacies of digital licenses, sellers are obligated to provide accurate information. From a marketing standpoint, avoiding terms like “buy” might confuse or worry users, leading them to believe that they won’t be able to fully use the game or that their access could be prematurely revoked. These fears should be unfounded if the licensing terms are properly communicated and beneficial to both parties.
Image source: Proxima Studio
