The information in this blog is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation. We make no guarantees about the accuracy or completeness of the information provided. Reliance on any information in this blog is at your own risk.
Modern games thrive on borrowed brilliance—licensed music to set the tone, brand collaborations for extra buzz, and fan-favourite memes that keep communities laughing. Yet every external asset is tethered to intellectual-property (IP) rights. Misjudge those rights and a DMCA takedown or lawsuit can erase months of revenue and goodwill. Whether you’re an Ontario indie studio or a AAA publisher, understanding what you may use “out of the box” and what demands a written licence is mission-critical.
The Four Main IP Types You’ll Encounter
Copyright
Protects original expression—art, code, music, voice acting, narrative text. Copyright arises automatically but can be enforced only by the rights holder or licensee.
Trademarks
Cover words, logos, slogans, character names, and even distinctive audio cues (think the “SEGAaaa” chime). Trademark owners police use that could confuse consumers about source or sponsorship.
Patents
Far less common in game development, but gameplay mechanics tied to hardware (e.g., haptic feedback systems) may be covered.
Personality/Publicity Rights
Images, voices, and likenesses of real people. Using a streamer’s face or an athlete’s catchphrase without permission can trigger privacy and misappropriation claims.
What You Can Use Without Permission
Public-Domain Assets
Works whose copyright has expired (life + 70 years in Canada) or that were never protected. Classic symphonies or 19th-century novels are fair game—but modern recordings of those symphonies are still copyrighted.
Open-Source Code (Under Permissive Licences)
MIT, BSD, or Apache-licensed libraries allow commercial use with minimal obligations (often attribution). Always retain licence texts in your repo.
Creative Commons “CC0” and “CC-BY” Content
CC0 = no rights reserved; CC-BY requires attribution. Double-check that the uploader actually owns the material—platforms like Sketchfab are flooded with user-generated uploads of dubious provenance.
Short, Non-Distinctive Phrases
Generic menu labels (“Start,” “Options”) and everyday expressions typically fall outside copyright and trademark scope. But avoid catchphrases strongly linked to a brand (“It’s-a me!”).
Facts, Ideas, Systems
Game mechanics like a health bar or an XP system aren’t copyrightable. Expression of those mechanics—how they look, feel, and sound—is.
What Requires a Licence—or a Risk Appetite You Probably Don’t Have
Commercial Music
Mainstream tracks are encumbered by at least two copyrights: the composition (publisher) and the sound recording (label). Streaming the track in-game or in trailers needs written synchronisation and master-use licences. Even 10-second clips can trigger automated takedowns.
Real-World Brands and Logos
Putting a Tesla or Tim Hortons shop in your open-world map implies association. Trademarks law prohibits uses that suggest endorsement or cause confusion. Satire defences are narrow.
Celebrity Likenesses
Digital doppelgängers of athletes, actors, or influencers can invoke Ontario personality-rights claims. A selfie-style likeness survey isn’t enough—get a signed release.
Fan Art and Memes
A viral meme’s humour doesn’t erase the underlying rights. Using Pepe the Frog or a Star Wars GIF as an in-game sticker demands a licence from the original copyright holder—or an expensive fair-dealing argument you’re unlikely to win.
Proprietary Game Engines Beyond Allowed Terms
Unreal and Unity grant engine licences, but many add-on assets in their stores carry separate restrictions (e.g., no use in gambling titles). Check each package’s EULA.
The Myth of “Fair Use” in Canada
Canadian “fair dealing” is purpose-specific—research, private study, criticism, review, news reporting, education, parody, or satire. Using a Marvel screenshot as a collectible card because “it’s only two seconds” is not fair dealing; it’s plain infringement.
Negotiating a Licence: The Key Levers
| Term | Why It Matters | Best-Practice Tip |
| Scope of Rights | Platforms (Steam, console, mobile), media (in-game, trailers) | Future-proof by including “successor platforms.” |
| Territory | Global vs. Canada-only | Digital sales blur borders—opt for “worldwide.” |
| Term | Length of licence | Align with game’s lifecycle plus one renewal option |
| Royalty Model | Flat fee, per unit, or revenue share | Budget for DLCs and sequels in the calculation |
| Approval Rights | Licensor may want to review use | Secure reasonable timelines to avoid launch delays |
| Indemnities | Who pays if a third party sues | Limit to breaches of warranties, cap at licence fee |
Open-Source: Hidden Tripwires
Copyleft Licences (GPL, AGPL, LGPL)
These “viral” licences require derivative works—including potentially your entire game—to be distributed under the same open-source terms. If your revenue model relies on closed-source binaries, keep GPL code out of your build pipeline or silo it as a separate process.
Creative-Commons “NC” and “ND” Clauses
“Non-Commercial” prohibits monetised games; “No Derivatives” bans editing. Many asset sites sneak these restrictions into their fine print.
User-Generated Content (UGC) Clauses
If your game allows modding or custom skins:
- Player Licence – Players grant you a worldwide, perpetual licence to use, distribute, and monetise their UGC.
– - Content Rules – Ban uploads that infringe third-party IP; adopt a notice-and-takedown policy to qualify for “hosting” defences.
– - Moderation – Automated filters plus human review for copyrighted music or trademarked designs.–
Enforcement and Risk Mitigation
- Automated Scanning – Use tools like Audible Magic for music, and TrademarkVision for visual marks.
– - Insurance – Media liability coverage can offset infringement defence costs.
– - Escrow and Audits – Require licensors to warrant they own the rights and provide indemnities.
If you receive a DMCA notice, act quickly: temporary takedowns preserve safe-harbour protection while you assess the claim.
How AMAR-VR LAW Can Assist
If you receive a DMCA notice, act quickly: temporary takedowns preserve safe-harbour protection while you assess the claim.
- Conducts asset-pipeline audits to flag unlicensed content before launch.
– - Negotiates music, brand, and celebrity licences tailored to in-game and streaming uses.
– - Drafts UGC terms that protect against player-uploaded infringing assets.
– - Advises on open-source compliance to prevent viral-licence contamination.
– - Manages DMCA takedowns and counter-notifications to keep your store page online.
Conclusion
Third-party IP can elevate gameplay, broaden appeal, and spark community buzz—but only when licence terms match your distribution goals and revenue model. Developers who assume “short clips are fine” or “everything online is fair game” risk takedowns, lawsuits, and lost funding. Secure the rights, document the licences, and build internal checks early. With the legal groundwork in place, your team can focus on crafting the next hit—without a legal time bomb ticking in the background.
Need an IP clearance or licence review before launch? Contact us today for a consultation. Our lawyers translate complex IP landscapes into clear, actionable strategies, so your game hits the market legally protected and ready to win.
Frequently Asked Questions (FAQs)
- Can I legally use short clips of famous songs or movies in my game?
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Not without permission. Even short clips of copyrighted music or films typically require licences from both the publisher (composition rights) and the record label or studio (master rights). There’s no “short clip exception” under Canadian copyright law.
– - Are memes and viral internet content safe to include in my game?
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No. Memes and viral content often contain underlying copyrighted material. Incorporating them into a commercial game without a licence risks infringement, even if the content is widely shared online.
– - Does Canada’s fair dealing law allow me to use copyrighted content in my game if it’s for entertainment or satire?
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Fair dealing in Canada is limited to specific purposes like research, education, news reporting, criticism, parody, or satire. Commercial entertainment uses generally do not qualify. Simply making something “funny” isn’t enough to invoke fair dealing for game development.
– - What’s the biggest legal risk when using open-source code?
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Incorporating open-source code under copyleft licences (like GPL or AGPL) can require you to release your game’s proprietary code under the same open-source terms. Always verify licence compatibility and consult legal counsel before integrating open-source components.
– - How can AMAR-VR LAW help with third-party IP licensing for my game?
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We assist Ontario developers by conducting IP audits of your asset pipeline, negotiating licences for music, brands, and celebrity likenesses, drafting UGC terms, advising on open-source compliance, and managing takedown notices or DMCA disputes.