The Legal Status of Video Games in Italy: Copyright Framework, Industry Practice, and AI Compliance

The Legal Status of Video Games in Italy: Copyright Framework, Industry Practice, and AI Compliance

Video games occupy a unique position in Italian copyright law. The Italian Copyright Act of 1941 (LDA) does not expressly define multimedia works, leaving classification to jurisprudence and doctrine. Four decades of case law have produced a framework treating video games as multimedia works — a hybrid category that draws from the law of cinematographic works (Article 44 LDA), software protection (Software Directive 2009/24/EC), and collective works (Article 3 LDA). For the growing Italian video game industry — with an expanding national development scene and substantial consumer market — the framework provides workable protection but with case-by-case complexity.

This guide covers the Italian legal framework for video games, the tax credit system, and modern issues including AI use and platform distribution. For the broader copyright framework, see our master pillar guide. For the parallel film and audiovisual framework, see our film production IP challenges guide.

Italian jurisprudence: 40 years of evolution

Italian classification of video games has evolved through four key judicial milestones:

  • Turin Magistrate Court, 25 May 1982: video games defined as “gadgets created to relieve idle people from boredom” — falling outside copyright protection, with protection only through unfair competition law;
  • Turin Court (Atari Judgment), 17 October 1983: opening to copyright protection through the “images in motion” element, classifying video games as audiovisual works;
  • Italian Supreme Court (Dalvit Judgment), 25 May 2007: final classification as multimedia works — combining text, graphics, sounds, images, and software in digital form;
  • Subsequent case law: confirmed the multimedia work classification, with continuing case-by-case refinement on specific issues (co-authorship, derivative works, software portion).

The framework remains doctrinally complex because the multimedia classification is itself hybrid, requiring application of multiple rights regimes to different elements of the game.

Multimedia work classification

Italian doctrine defines a multimedia work as “a product that combines simultaneously, in digital form, text, graphics, sounds, images, and software.” For video games specifically, the multimedia framework engages:

  • Audiovisual elements: graphics, animations, cinematics — protected under audiovisual work framework (Articles 44-50 LDA);
  • Software: the underlying code — protected under software framework (Software Directive 2009/24/EC, transposed into Italian Law);
  • Music and sound: original score, sound effects, voice acting — protected as musical and audio works;
  • Text: scripts, dialogue, written content — protected as literary works;
  • Database: game databases (character stats, level designs) may engage Database Directive 96/9/EC.

Two doctrinal trends compete: one treats video games as collective works (Article 3 LDA) coordinated by an editor; another emphasises the audiovisual nature and applies cinematographic works framework (Article 44 LDA) with multiple co-authors. Italian case law has not definitively resolved the choice — the case-by-case approach remains.

Authors and rights holders

Identification of authors depends on the classification chosen:

  • Under cinematographic work framework: co-ownership among the authors of script, screenplay, music, and director (the person coordinating contributions). For video games, graphic designer and software author can be added as co-authors given the specific features of the medium;
  • Under collective work framework: individual authors retain copyright in their contributions; the editor/publisher owns the collective work as such;
  • Software portion: under Article 12-bis LDA, where software is created by an employee in the course of employment, economic rights vest in the employer.

For modern game studios, comprehensive employment agreements and freelance contracts addressing each contributor’s rights are essential. The Italian framework provides flexibility but requires careful contract drafting to avoid disputes among contributors.

Chain of rights and stakeholders

The video game value chain involves:

  • Hardware manufacturers: console makers (Sony, Microsoft, Nintendo), PC manufacturers, smartphone/tablet makers;
  • Original developers: studios designing and creating the game;
  • Content authors: musicians, designers, artists, voice actors, game testers, narrative designers;
  • Production engineers: middleware and tools developers;
  • Producers: financing entities, often development studios themselves or publishing partners;
  • Publishers: marketing, distribution, retail coordination;
  • Licensees: derivative works rights holders (film/TV adaptations, comic books, merchandising);
  • Licensors: rights holders of underlying content (sports leagues for sports games, books and movie characters);
  • Distribution channels: online platforms (Steam, PlayStation Store, Xbox Store, Nintendo eShop, App Store, Google Play), physical retail, streaming services;
  • End users: players, including increasingly modders and user-generated content creators.

For Italian studios, structuring contracts across this chain — particularly for international distribution — requires coordinated legal architecture.

Italian video game tax credit

Italy provides specific tax incentives for video game development through the cinema and audiovisual tax credit framework. Under Italian Law 220/2016 (Cinema Law) and subsequent decrees, Italian video game studios can access:

  • Video game production tax credit: substantial percentage of eligible production expenses;
  • Cultural eligibility: cultural test requirements specific to video game content;
  • Regional film fund coordination: regional Italian incentives stacking with national tax credit;
  • D.I. MiC-MEF 225/2024: most recent operational framework with detailed eligibility criteria;
  • Mandatory AI clause: Article 7 paragraph 6 D.I. 225/2024 requirements apply to video games accessing tax credit.

For the operational framework, see our Italian film tax credit guide. The video game-specific application requires careful structuring of the cultural test elements and qualifying expense documentation.

AI Act and Italian Law 132/2025 compliance

Video games increasingly use AI for procedural generation, NPC behaviour, dynamic difficulty adjustment, voice synthesis, and content moderation. The framework engages:

  • EU AI Act (Regulation 2024/1689): foundation model provisions for game AI, particularly Article 50 transparency requirements for AI-generated content;
  • Italian Law 132/2025: national-specific AI provisions including personality rights protections against AI use of identifiable persons;
  • AI training data: under DSM Article 3-4, AI training on copyrighted assets requires opt-out respect for non-research use;
  • Synthetic content labelling: AI-generated voice acting, character likenesses, and other synthetic content must be disclosed;
  • Performer likeness consent: voice actor and motion capture performer agreements must specifically address AI use.

For Italian studios using AI tools in development, comprehensive documentation and contractual provisions covering AI use are essential.

Platform distribution and DSM Article 17

Modern video game distribution operates almost entirely through online platforms. The framework engages:

  • Platform terms of service: each platform (Steam, PlayStation Store, App Store, Google Play, Epic Games Store) has specific terms requiring developer compliance;
  • DSM Article 17: applies to content-sharing platforms hosting user-generated content (modding, video sharing, livestreams);
  • Streaming platform issues: Twitch, YouTube Gaming, and Kick streaming of gameplay raises issues of synchronisation rights for in-game music, derivative work questions, and DMCA compliance for embedded copyrighted content;
  • Mod community management: user-modification policies require careful structuring to preserve developer rights while enabling community engagement.

For platform liability framework, see our platform and intermediary liability guide.

How DANDI supports video game studios

DANDI.media supports Italian and international video game studios, publishers, and platforms:

  • Studio formation and team agreements;
  • Co-development and publishing agreements;
  • License agreements for underlying content (music, sports, characters);
  • Distribution agreements across platforms;
  • Italian tax credit application for video game production;
  • AI compliance and content labelling;
  • Mod community policy structuring;
  • Cross-border IP enforcement and counterfeit response.

For consultation, book directly with Avv. Claudia Roggero or Avv. Donato Di Pelino.

Related guides

TopicResource
Copyright Law in Italy and Europe (master pillar)/en/copyright-law-italy-europe/
Film Production IP Challenges/en/film-production-intellectual-property-challenges/
Italian Film Tax Credits/en/italy-film-tax-credits/
Platform and Intermediary Liability/en/sony-doctrine-secondary-liability/
Option Agreement for Film Rights/en/option-agreement/
Trade Secrets in Italy/en/trade-secrets-in-italy/
OpenAI Sora (AI legal issues)/en/openai-sora-shut-down/

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