The Czech Republic adopted an amendment to Act No. 496/2012 Coll., on Audiovisual Works and Cinematography Support and on the Amendment of Certain Acts, as amended, which brings significant changes to the audiovisual industry (the Bill) with the effect from 1 January 2025.
Key changes introduced by the Bill include the establishment of state support for video games and a change in the fee obligations that will also newly apply to foreign providers of audiovisual media services on demand (AVMS) targeting Czech customers. These key developments are explored in more detail in our two-part article (the second part is available here).
Introduction of state support for video games
The Czech legal framework has so far not allowed state support for video games. This situation will change with the Bill, which categorises video games among other audiovisual works. The Bill intentionally defines video games broadly as:
“interactive works with audiovisual elements consisting of a game or simulation that use digital technologies, are capable of being released through electronic or physical media, are controlled by a computer program enabling the person playing the game to interact with the dynamics of the game or simulation, and contain at least two of the following elements in digital form: 1. text, 2. sound, 3. static image, or 4. animated images.”
Based on this definition, video games will include computer, console, mobile, and other types of games.
State support for video games will be available for projects in all areas, just as for other audiovisual works. Supported projects will include the development of Czech video games, production of Czech video games, the distribution of video games, and the protection of rights to video games.
State support for video games will be provided in the form of a grant with a share in the profit. The recipient of the support will therefore contribute a portion of the revenue from the video game to the newly called Czech Audiovisual Fund (the Fund). The Bill does not explicitly specify the percentage for the profit share, meaning the amount will be determined individually based on the nature of each specific project. An explanatory memorandum to the Bill states that the profit share will be paid up to a maximum amount equal to the provided grant. Therefore, the recipient should not pay more than the amount of the provided grant.
Applications for state support will be submitted in response to announcements issued by the Fund. Information on individual announcements will be published on the Fund’s website.
Summary
The Bill updates the legal framework in the area of support for audiovisual works, which previously did not adequately cover video games. With this new legal framework, state support for video games will become available, aiming to foster creativity, increase competitiveness, strengthen artistic freedom in Czech video game creation, and allow further success in both the domestic and international markets.
The proposed changes rectify the position of video game creation by granting it the status of a full-fledged audiovisual sector. This state support is crucial for the future development of this fast-growing and globally significant industry.
If you are interested in the topic of state support for video games and want to know more, contact your CMS client partner or our regulatory expert Jan Ježek.
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