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The Legality of Loot Boxes: A Primer

By Julia Kadish & James Gatto on November 30, 2020
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Loot boxes have become a regular feature in many mainstream video games. However, while their popularity is clear amongst gamers, the legal issues and positions from regulators about their use, both in the US and abroad, are a bit more murky. By the end of 2020, several of the major console manufacturers have pledged to require games developed for their platforms to disclose information on the relative rarity or probability of obtaining randomized virtual items. These required disclosures will also apply to game updates, if the update adds new loot box features. Many major publishers have made a similar commitment to provide such disclosures by the end of the year. Given these impending self-regulating industry moves, the handout below provides an overview of the key legal considerations for companies currently using, or considering using loot boxes in their games.

Legal Considerations for Loot Boxes

Photo of Julia Kadish Julia Kadish

Julia Kadish is a partner in the Intellectual Property Practice Group in the firm’s Chicago office and a member of the Privacy and Cybersecurity Team.

Read more about Julia KadishEmail
Photo of James Gatto James Gatto

Jim Gatto is a partner in the Intellectual Property Practice Group in the firm’s Washington, D.C. office. He is Co-Leader of the Artificial Intelligence Team, the Blockchain & Fintech Team, and Leader of the Open Source Team.

Read more about James GattoEmail
  • Posted in:
    Other
  • Blog:
    Game Counsel
  • Organization:
    Sheppard, Mullin, Richter & Hampton LLP
  • Article: View Original Source

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