Unlock California’s E-Licensing Revolution: Mandatory Licensing for Digital Goods Heads Off

Digital Ownership: A License to Play, Not Own?

Have you ever purchased a game and thought you owned it, only to realize you actually paid for a license to play? It’s a common misconception, but companies can revoke that license at any time. Ubisoft’s recent move to delist racing game The Crew serves as a stark reminder of the volatile nature of digital ownership.

The Concerns Around Digital Ownership

When you pass away, what happens to your digital games? You can’t technically pass along your license to another person, per many companies’ policies. This issue becomes even more pressing as the digital age continues to take over the way we consume media. A new California bill aims to address this concern.

AB 2426: Bringing Transparency to Digital Goods

Assemblymember Jacqui Irwin introduced the bill, AB 2426, in part, after hearing about Ubisoft’s decision to delist The Crew. The bill doesn’t change the fact that we’re licensing games instead of owning them, but it requires companies that operate in California to be more transparent about it. Companies like Microsoft, Valve, Sony, Nintendo, and publishers must comply.

The New Law’s Effect

By January 1, these companies will no longer be able to use words like "purchase" or "buy" without clearly indicating that they’re selling licenses, not unrestricted ownership. The law only applies to digital storefronts, excluding subscription-based services, free downloads, and permanent offline downloads.

The Road Ahead

This law is a crucial step in securing consumers’ digital rights, according to University of Michigan professor Aaron Perzanowski. While it’s not a silver bullet, it’s an important step towards greater transparency. As the world shifts towards digital media, it’s essential that consumers understand what they’re getting. Physical media, once a staple, is becoming a thing of the past, leaving us to navigate the complex world of digital ownership.

Why This Matters

Digital purchasing is the new norm. Stores like Best Buy have stopped selling physical movies and DVDs. It’s easy to imagine a future where physical video games become scarce. A company could take servers offline, rendering the game unplayable, even if you own the physical disk.

Stay Informed, Stay Savvy

Stay up to date on the latest developments in the world of digital ownership and media consumption. By doing so, you’ll be better equipped to navigate the complexities of licensing and ownership, ensuring that your digital treasures remain secure.