The global video game industry generates annual revenues of over 200 billion dollars, making it one of the fastest-growing creative industries. At the heart of this economic phenomenon are designed elements—skins, characters, weapons, maps, and other visual and audio assets that shape the aesthetic and functional identity of a game. Skins in popular titles such as League of Legends or Counter-Strike can generate millions of dollars in revenue, while iconic characters like Mario or Sonic have become multi-billion-dollar franchises.
For local development teams and studios, understanding the legal nature of these elements is not an academic issue—it is a business imperative that can determine the difference between sustainable growth and devastating legal consequences.
Copyright Protection of Designed Elements
Subject of Protection in the Context of Video Games
The Law on Copyright and Related Rights of the Republic of Serbia (“Official Gazette of RS”, Nos. 104/2009, 99/2011, 119/2012, 29/2016 – decision of the Constitutional Court, and 66/2019) in Article 2 defines a copyright work as an “original intellectual creation in the fields of literature, science, and art, expressed in any form.” This definition encompasses a wide range of creative elements present in video games.
Specifically, copyright protection may cover:
Visual elements: The graphic design of characters, skins, weapons, vehicles, architecture, textures, effects, and animations represents an original artistic creation. Any skin that possesses sufficient originality—whether through a unique combination of colors, shapes, ornaments, or stylization—can be protected as a copyrighted work in the field of fine arts. In a well-known case in the United States, Blizzard successfully enforced its copyrights over characters from Heroes of Warcraft against the studio uCool, whose game featured skins almost identical to Blizzard’s, despite minor variations in details.
Audio elements: Compositions, sound effects, dialogues, and voice-overs constitute musical or literary works. Particularly significant are original themes associated with specific skins or characters, which further reinforce their recognizability and market value.
Narrative content: Stories, dialogues, character descriptions, and biographies fall within the scope of literary works. Creating a narrative integrated with a character’s appearance, behavior, and abilities often contributes to multi-layered copyright protection.
Computer code: The structure and organization of a game’s source code are also subject to copyright protection as works in the field of science. In practice, companies such as Valve regularly act against unauthorized copying and modification of game code by third parties, relying on copyright law and end-user license agreements.
The Boundary Between Idea and Expression
It is crucial to understand that copyright does not protect an idea, but rather its specific expression. The general idea of a “cyber-punk warrior” is not protected, but the specific visual design of such a character—with particular shapes, colors, details, and stylization—is. This distinction is of paramount importance in disputes concerning alleged design copying.
On this very basis, a series of lawsuits were brought against Epic Games, whose Fortnite emotes triggered claims from several authors alleging that their dance moves had been unlawfully appropriated. Although most of these cases were dismissed on procedural grounds, they demonstrated how thin the line between inspiration and copying can be, especially when it comes to expressing an idea through movement or animation.
Registration and Proof of Authorship
Unlike patents or trademarks, copyright arises automatically upon the creation of a work, without the need for formal registration. However, in practice, it is necessary to document the creation process to facilitate proof in potential disputes.
It is recommended to:
- Use notary deposits for final versions.
- Maintain detailed documentation of the design process (concept art, iterations, wireframes),
- Digitally mark the creation date through version control systems
- Sign and date physical sketches
Right Holders and Contractual Issues
Copyright in the Employment Context
According to Article 21 of the Law on Copyright and Related Rights, when an employee creates a copyrighted work within the scope of their employment duties, the economic rights to that work belong to the employer, unless otherwise specified in a contract. This rule is particularly significant in game development studios, where employed designers and programmers regularly create elements subject to copyright protection.
However, moral rights—the right to be recognized as the author and the right to the integrity of the work—remain with the employee and cannot be transferred. This can create practical challenges, especially in cases where a former employee does not want to be associated with a project or disputes modifications of their creative contribution.
Special attention should be given to computer code. Although code is protected as a copyrighted work, in practice, contracts must clearly define the scope of its use, particularly when the code is utilized in different games, spin-off projects, or licensed to third parties. Without precise contractual regulation, a studio may face limitations in using a work it believed it had full rights to.
Contracts with External Collaborators
Engaging freelance designers, artists, or audio producers requires special attention. Without an explicit transfer of economic rights through a contract, the creator retains all rights to their work. This can result in a situation where the studio cannot use elements it has paid for or must pay additional royalties for each use.
It is recommended to use “work for hire” clauses or explicit provisions transferring all economic rights to the client. The contract should also define the possibility of derivation—the studio’s right to modify, expand, or adapt the original design—which has been particularly important in practice for Riot Games, who regularly modify skin lines and characters for promotional and e-sports events.
Related Intellectual Property Rights
Trademark Protection
Names of skins, skin lines, characters, or designed locations can be registered as trademarks if they are used in commercial activities. For example, Riot Games has registered trademarks for all major skin lines, such as “PROJECT,” “Pulsefire,” and “Star Guardian.”
A trademark provides stronger and longer-lasting protection than copyright because it allows the prevention of the use of identical or similar marks in the same or related business, regardless of originality or artistic level.
Design Patents
In certain jurisdictions (USA, EU), it is possible to register design patents for the visual appearance of a product, including elements of video games. This protection is shorter than copyright (usually 10–15 years) but provides a broader basis for prohibiting commercial copying, even in cases where copyright protection may be questionable.
Personality Rights
The use of recognizable physical features, voice, or names of real individuals in games can lead to violations of personality rights. In the United States, Epic Games faced multiple lawsuits regarding the use of dancers’ and musicians’ identities in Fortnite emotes, with the plaintiffs invoking not only copyright but also their right to personal identity.
Conclusion and Recommendations
Designed elements in video games represent significant economic value that requires adequate legal protection. For development teams, neglecting intellectual property issues can result in losses amounting to millions of dinars and devastating legal disputes.
Key recommendations for local studios:
Documentation and Record-Keeping: Establish a systematic record of the creation of all creative elements. Use version control systems, maintain logs of the creative process, and regularly back up work.
Contractual Discipline: All contracts with employees and collaborators must clearly regulate copyright issues. Avoid generic templates and tailor provisions to the specifics of the gaming industry.
Proactive Protection: Consider registering trademarks for game titles, characters, and skin lines. For projects with high commercial potential, consider international protection.
Monitoring and Enforcement: Implement a system to track unauthorized use of creative elements. Respond quickly and decisively to infringements—tolerating copying can weaken your legal position.
Team Education: Ensure all members of the development team understand the basics of copyright and the importance of intellectual property for the company’s business strategy.
In an era where a single successful skin can generate more revenue than an entire traditional video game, intellectual property protection is not a luxury but a business necessity. Investing in adequate legal advice at the start of a project can save millions of dinars and years of court proceedings in the future.
Licensing and Monetization of Designed Elements
The legal regulation of the use of skins, characters, and other visual assets does not end with their creation and protection—it is equally important to organize the legal relationships concerning their further commercial exploitation, i.e., licensing.
License agreements form the basis for granting rights to use certain elements, most often skins, for promotional, aesthetic, or functional purposes in other games, media, or related products. A license can be exclusive or non-exclusive, and limited or unlimited in time and territory. In practice, such models are used in collaborations with major brands—for example, Epic Games’ partnerships (Fortnite) with Marvel, Star Wars, and other holders of well-known franchises.
Poorly drafted license agreements can result in situations where the developer loses control over the use of their own designs or is restricted in further monetization. It is recommended to prepare detailed licensing documentation with clearly defined rights, prohibitions, and obligations of the contracting parties.
Liability for User-Generated Content (UGC)
Modern game distribution and development models increasingly allow players to create certain content within the game—skins, costumes, animations, and even entire maps and characters. Such content, known as user-generated content (UGC), while contributing to community engagement and brand development, also introduces a range of legal and commercial risks.
If a user, while creating content, uses someone else’s protected trademark, logo, design, or element of a copyrighted work (e.g., a character from another game, a sports team logo, a song, or a well-known dance move), it can result in direct infringement of third-party rights. In such cases, liability does not fall solely on the user—it can, in certain situations, extend to the publisher or platform if a reasonable level of oversight has not been exercised.
For this reason, it is recommended that EULAs, Terms of Use, and other contractual documents clearly define that:
- The user guarantees the originality of the content,
- The user assumes full legal responsibility for any potential infringement of third-party rights, and
- The publisher has the right to remove, block, or prohibit such content without prior notice.
International Protection of Copyrights and Trademarks
Copyright has an international character and is generally recognized in all member states of the Berne Convention, the TRIPS Agreement, and WIPO treaties, including key markets such as the European Union, the United States, and Japan. Under these agreements, a Serbian author enjoys protection of their works abroad without additional registration.
However, in the case of trademarks, protection is territorial and can only be obtained through registration. Names of skins, characters, skin lines, and other commercially used expressions can be protected through national (ZIS), European (EUIPO), or international (WIPO) registers. Proper planning of a trademark strategy can prevent later disputes regarding product branding, especially in markets where a game achieves significant commercial success.
Artificial Intelligence and Copyright in Game Design
The use of artificial intelligence (AI)-based tools to generate skins, textures, music themes, and narratives is becoming increasingly common in the video game industry. However, the copyright status of content created through AI tools is not yet legally well-defined.
Under the current law of the Republic of Serbia, the author of a copyrighted work can only be a natural person. A work entirely generated by AI tools without human intervention cannot have the status of a copyrighted work under the law. In the event of a legal dispute, such a work would not enjoy legal protection, and studios using AI to create commercial content could face difficulties in proving rights.
For this reason, it is recommended to:
- Avoid using AI-generated works as the primary or sole version of content for commercial use.
- Contractually regulate the use of AI tools within projects,
- Ensure documentation of human creative intervention in the final design.
Enforcement Strategies and Tools
Intellectual property protection does not end with registration—it also involves continuous monitoring, detection, and response to infringements. In this regard, every studio needs to develop its own enforcement strategy.
Basic methods include:
- Sending formal warnings and take-down notices (cease & desist),
- Filing DMCA requests to platforms hosting infringing content,
- Using specialized tools and services (Red Points, BrandShield, ImageRights) for automated monitoring of the internet and marketplaces.
Companies like Riot Games and Blizzard have internal teams dedicated to IP monitoring and protection, while smaller studios can hire external law firms with experience in international IP disputes. Timely response to rights violations is often crucial for maintaining the reputation and commercial value of the brand.
Author: Nemanja Injac, Managing Partner at Injac Attorneys
The information contained in this document does not constitute legal advice on any specific issue and is provided solely for general informational purposes.
