Historically, the value of trade mark protection has been viewed with scepticism by indie-game developers, however with global revenues generated by the industry higher than they've ever been ($184 billion in 2023, with $20 billion attributed to the indie market), and competition for success fiercer than ever, can developers truly afford to forego protection of their IP?
Though the reality is that a significant number of indie titles ultimately fail to sell successfully, there are a number of remarkable success stories. Earlier this year, Palworld, developed by indie studio Pocket Pair, became one of the top 10 selling PC games of all time and made over $500 million in sales on Steam alone.
Minecraft is perhaps the best illustration of the value of IP in indie games. Though it may now be the best selling game of all time with over 140 million active monthly players as of 2023 (over 15 years after its release), it had humble origins as a product of indie game developer Mojang Studios in 2011. The studio and its Minecraft IP were purchased by Microsoft for a staggering $2.5 billion in 2014.
At the opposite end of the spectrum, there are, unfortunately, plenty of examples of the ramifications to indie developers in not protecting their IP before launch. The indie studio Fntastic was, for example, forced to delay the release of its game "The Day Before" after a third party claimed the title infringed their earlier trade mark (which had been filed after the title of the game had been made public).
Securing trade mark protection before going public would have prevented this as it importantly provides a legal tool for indie game developers to prevent others from using identical or similar names or branding that could confuse consumers, while also safeguarding the developer's brand from being diluted or copied. Beyond this though, registered trade marks also provide a number of other commercially important benefits to smaller and independent studios:
Monetary value: A registered trade mark can increase and protect the value of an indie game or studio, potentially attracting investors, publishers, or buyers. As the game grows in popularity, the brand's value can increase, creating licensing opportunities or merchandising deals.
Online marketplace protection: Trade marks help indie developers defend against infringing products on digital storefronts (like Steam, Google Play, or the Apple App Store). Many platforms require proof of trade mark ownership to take down unauthorized copies or clones.
Preventing cyber-squatting: Registering a trade mark can help indie developers secure domain names and social media handles related to their game, avoiding situations where others take these for malicious or competitive reasons.
By securing trade mark protection, indie developers can safeguard their creative work, build consumer trust, and unlock greater commercial potential. The choice between registering a trade mark and not means taking a realistic view of cost v benefit. For indie developers working on smaller budgets, it may not seem important or a priority to pursue trade mark protection, but the benefits in investing in protection for your valuable IP are clear.
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