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Recent developments in Germany

Following the finalisation of our article, the Sony v Datel dispute returned to the Bundesgerichtshof for further hearing and for the Court to apply the interpretation of the Software Directive which had been elaborated by the CJEU. In applying the CJEU’s decision, the Bundesgerichtshof confirmed that the action replay software only altered the values of variable data stored in the console’s RAM, and not the program commands of the game software. As a consequence the defendant’s activities were outside the scope of protection of Article 1 of the Software Directive (and domestic German legislation implementing the Directive in section 69a of the German Copyright Act), and Sony’s appeal was dismissed. This brought to an end the long running saga of this litigation, which had been commenced in 2012. 

Some of the more complex and unresolved questions about the implications of the CJEU decision discussed in section 2.3.5 of our full article were sadly not addressed by the Bundesgerichtshof, and will need to wait to be clarified in a future decision. The German Courts may however soon have such an opportunity in the Adblocker IV litigation. The Bundesgerichtshof handed down a judgement in that dispute on the same day as the Sony v Datel dispute, overturning a decision of the Hamburg Higher Regional Court and referring the dispute back to the lower court to resolve. 

The Adblocker case similarly considers the scope of protection available under the Software Directive, and the decision explicitly refers to the CJEU decision in Sony v Datel. In the Adblocker dispute a German online media company Axel Springer brought action against the developer of ad blocker software “Adblock Plus”. The publisher claimed that the commands in the website HTML files used to give instructions to web browser on the display of their news websites are a computer programs within the meaning of the Software Directive. They argue that the modifications made by the ad blocker software on the data structures generated by a user’s browser when parsing the HTML code (carried out to prevent adverts from displaying) were unlawful modifications of their computer program. The Bundesgerichtshof considered that the factual findings previously made by the German Court of Appeal were insufficient for resolving the dispute, as it was unclear whether the ad blocker merely interfered with the execution of the HTML code or whether instead protected program commands were blocked and overwritten and the protected computer code was actively and directly changed. The eventual resolution of the Adblocker dispute may address some of the unresolved questions following the Sony v Datel CJEU decision, and will have implications for not only games companies, but more generally for the providers of cloud-based software.

Conclusion

As discussed above, while the CJEU and subsequent Bundesgerichtshof decisions in the Sony v Datel dispute establish that copyright in video game code protected under the Software Directive may not extend to the values of variables, the case’s potential impact on a games company’s ability to control hacks and cheats should not be overstated, given the range of other legal tools that a games developer can use to address hacks and cheats. 

A balanced approach to enforcement is also recommended. Developers should seek to maintain a dialogue with their player communities on modding and cheating issues. Permitting some activities, such as controlled modding within suitable single-player environments, may encourage a positive relationship with the player base that can enhance a game’s longevity and reputation. By balancing enforcement and engagement, developers can safeguard their IP whilst supporting the community and creativity that defines the gaming industry.

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