Video game cheats and hacks are a major problem for game developers and publishers, particularly in online games. Cheats and hacks can ruin the multiplayer experience, and there is an ongoing struggle between cheat developers and games companies who seek to develop anti-cheat software to protect their gameplay experiences to retain players and protect the value of their investments. Such disruptions to an online community can damage a game’s reputation and, subsequently, its revenue. Effective policing of cheats and hacks also requires deploying a combination of legal and community measures, including intellectual  property rights and the  use of contractual terms.

What are cheats and hacks?

Cheats and hacks are activities which interfere with the integrity of the video game or the experience of other players and include tools or software that give a player an unfair advantage in the game. This includes software which provides cheating players with unlimited health or resources, auto-aim, or revealing hidden items in a game. There is an active market for cheat developers, with some estimates suggesting that the global game cheat and hacking software marketplace has revenues of over £50 million each year.  

What legal tools can game developers use to prevent cheats and hacks?

Games companies often ban the use of cheats and hacks in their games, including by placing contractual restrictions in the game’s terms of service which forbid players from using cheating software. In addition to using contractual restrictions on players, game developers may be able to rely on a range of intellectual property rights to prevent the use of cheat and hack software. Cheating may result in a copyright infringement claim if the hacking tool copies parts of the game’s code or other protected works. In some instances, a game developer may also be able to rely on database rights, their trade marks or patent protection to take action against cheat developers.

How significant is the UK video game industry?

Video games are a major sector of the UK economy, with consumers spending £7.6 billion on games last year according to the Association for UK Interactive Entertainment (UKIE). In 2024 the UK video game revenues were approximately twice the size of music revenues and worth close to the revenue of the film and television industry according to the Digital Entertainment and Retail Association, and the UK is the third largest exporter of video games globally.
 
The UK Government’s recent decision to recognise the importance of video games in its Industrial Strategy has been widely welcomed by the industry. The Government has also pledged £30 million towards a Games Growth Package to support UK start-up studios, and formed a new industry-led UK Video Games Council as an advisory body to assist in policy making. 
 
Dr Richard Wilson OBE, TIGA CEO:
 
"The £30 million Games Growth Package is good for developers, good for studios and good for the wider economy. Our industry is already economically important and has significant potential. It’s also very encouraging to see the creative industries identified as one of the Government’s 8 priority sectors, and that the video games industry will be prioritised as one of a small number of ‘frontier industries with the greatest growth potential.'"

The Sony v Datel dispute and the protection of software

The recent Sony v Datel dispute in the Court of Justice of the European Union (CJEU) is an interesting case study which considers the extent to which certain cheat tools may infringe the protection for computer programs under the EU’s Software Directive. The dispute is also highly relevant in the UK, as the protection for computer software in the UK is based on the pre-Brexit EU Directive. We have written a detailed analysis of the dispute in the Interactive Entertainment Law Review academic journal, which is summarised on our website here.

The case concerned cheat software called ‘Action Replay’, which modified RAM variables in Sony’s PlayStation Portable console and which unlocked restricted features in games played on the console. The cheat software did not copy the original game’s programming code (which would infringe copyright protection for that code), but instead manipulated variables transferred to the console’s memory during gameplay. Previous EU case law had confirmed the source code and the object code of a computer programme were protected under the Directive, but that other elements of a computer program, such as the functionalities and its user interface, were not protected through the Software Directive. The Court was therefore asked to determine whether the content of the variable data transferred to the RAM of a computer while software was running was protected.

The CJEU decided that altering RAM variables does not involve copying or altering original elements of the game’s code and, as a result, such modifications fall outside the scope of computer program copyright infringement. Sony was therefore unable to rely on protection under the Software Directive to take action against the developer of the cheating tool. As discussed above, games companies however remain able to rely on a range of other legal tools to prevent cheats and hacks.

Key Takeaways

The most successful strategies for games companies policing cheats and hacks are multifaceted, and will involve robust anti-cheat systems, active monitoring of player activities to detect signs of third-party software, clearly drafted and enforceable terms of service and a comprehensive policy for identifying, protecting and enforcing intellectual property rights. A balanced approach to enforcement is also recommended. Developers should seek to maintain a dialogue with their player communities on cheating issues. By balancing enforcement and engagement, developers can safeguard the value of their games and their IP whilst supporting the community and creativity that defines the gaming industry. 

Game Changers 30th September

Bringing together leading voices from across the industry, we’ll explore the opportunities and challenges shaping the future of gaming – from cultural influence eand innovation to funding, legal complexity, and structural change – with expert insight and practical guidance for navigating this fast-evolving landscape.

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