A number of important elements have contributed to the recent success of games companies. The Covid 19 pandemic caused a global increase in the consumption of digital entertainment, which in turn has increased demand for video games. Technological developments like Artificial Intelligence (AI) Virtual Reality (VR) and cloud gaming, have improved gaming and drawn in a wider audience. The accessibility of mobile gaming combined with 5G technology and networks have both fuelled the industry's rapid expansion and profitability. Of additional importance is the broader spectrum of game offering and audience age range as first generation gamers from the early late '70's and early 80's now reach their 60's.
Games Companies in Cyprus
Notably, there has been an upsurge of games companies in Cyprus due to the compelling environment and Cyprus's strategic location, providing easy access to multiple markets. Its robust digital infrastructure and innovation ecosystem combined with the attractive corporate tax rates, the robust regulatory framework and favourable IP regime, created a business-friendly landscape. Additionally, Cyprus enables games companies to benefit from the high quality of life, a well-educated, highly skilled, multilingual workforce, access to tech-savvy EU and international talent pool and the proximity to their team locations in Europe.
Legal Considerations
Starting a games company in Cyprus requires planning and adherence with legal and other considerations, having in mind the international nature and potential audience of the game concept. Key requirements include registering the company with the Registrar of Companies, obtaining necessary licenses and having in place agreements to cover software and intellectual property rights and development. Corporate structuring and the contractual architecture that should be in place, are some of the first things games companies often consider, prior to examining compliance with employment laws, consumer protection and other applicable regulations.
Intellectual Property (IP) rights transfer and copyright registration is also amongst the most important aspects a game company will have to consider, in order to protect their game assets.
If the game is available in the EU, then the requirements provided for in the General Data Protection Regulation (GDPR) should be also taken into account by games companies. As Games entail the processing of a great amount of users' data, companies need to make sure that they process personal data in accordance with the principles of the GDPR, that they process data lawfully, and transparently making users aware of risks, rules safeguards and rights in relation to the processing of their personal data.
Security of the systems and business practices is another big issue that should be considered when developing a game. Privacy by design should be embedded into the design becoming an integral component of the core functionality being delivered.
The Future
The future of games companies is bright, having in mind the evolution of technology and software and the maturity of audience and their increasingly sophisticated appetite for content innovation. We have just scratched the surface with the use cases and integration of AI and immersive experiences through augmented reality (AR) and virtual reality, which are definitely going to redefine gameplay. As these innovations further evolve, gaming will become even more essential to entertainment.
The Firm
We have some of the top ranked teams on the island with specialised and experienced lawyers, arbitrators and mediators. Our innovative team has a well established record on local and cross-border matters and is a responsive partner for firms servicing clients with challenging and time-sensitive requests. We support a healthy mix of established companies and financial institutions together with start-ups, innovative tech sector enterprises and new entrants to the Cyprus market. We are highly recommended by international legal directories, including The Legal 500, Chambers & Partners and Who's Who Legal, and we are the sole Cypriot member of Ius Laboris and GALA, as well as being members of INATBA and several other associations with which we have long-standing relationships.
Our GZGTech department, headed by Vasilis Charalambous, president of the Technology Committee of the Cyprus Bar Association, and a member of the International Association for Trusted Blockchain Applications (INATBA) and the Tech London Advocates Blockchain Legal and Regulatory Group, aims in contributing to the shaping of the legal tech market in Cyprus and in navigating our clients through the most complex technological advances.
In cooperation with Velocity, a high-end boutique advisory firm, the team advises on financial structuring, operational optimization and project management, and a broad range of investment and commercial opportunities and industry sectors.
Our specialists also work closely with and complement the strategic legal advisory services provided by the other practice groups in the Firm. This combination of legal expertise, with leading technology working seamlessly together, enhances our team's ability to achieve informed decisions faster and more efficiently, offering compliant by design solutions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.