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If you’ve been anywhere near the gaming world lately, you’ll know that video games aren’t just video games anymore. They’re brands, they’re entertainment universes and increasingly, they’re multi-platform empires that span – film, fashion, music, merchandise and even makeup.

However, as studios and publishers keep pushing their beloved franchises into new worlds, both digital and physical, they’re also running headfirst into fresh legal territory. The result is mix of creative opportunity, commercial growth and complex intellectual property (IP) puzzles that need solving before the final showdown – global exploitation.

Let’s break down what’s happening, why game IP is being stretched in new directions, and the five biggest legal challenges every rights owner should have on their radar.

The great game IP expansion

Once upon a time, ‘game IP’ meant a single product –  a console title, maybe a PC release if you were lucky. Fast forward to 2025 and that same IP might have a TV show, an anime series, a Lego tie-in, a cookbook, and a sneaker collab with Nike.

What started with 90s legends like Pokémon and Tomb Raider has become an unstoppable wave. Today, The Last of Us, Arcane, The Witcher, and Fallout have turned gaming stories into award-winning prestige TV. The Super Mario Bros. Movie smashed box office records and brands are falling over themselves to co-brand everything from Crocs to Yorkshire Tea controllers.

The nostalgia economy is thriving, too. Adult gamers from the 90s and 00s are happily buying remasters, retro merch and collector’s editions that scratch that childhood itch. However, this isn’t just about sentimentality, it’s about serious money. Diversifying how you exploit your IP is now an essential business strategy in an industry where development costs are sky-high and competition is relentless.

Beyond the console – how studios are cashing in

Let’s talk about how studios are actually expanding their IPs and why that expansion comes with more contracts and copyright headaches than ever before.

Film and television adaptations are leading the charge. We’re a long way from the days when game-to-movie projects were low-budget curiosities. Now they’re cinematic universes in their own right for example, Sonic the Hedgehog 3 and Minecraft: The Movie are both shaping up to hit half a billion at the box office.

Then there’s music – game soundtracks aren’t just background noise anymore, they’re cultural events. From official Spotify releases to virtual concerts in Fortnite or Roblox, game music is being repackaged and monetised like never before.

Merchandise remains a goldmine, whether it’s direct-to-consumer shops selling limited-run collectibles or major partnerships with luxury labels like PlayStation x Balenciaga. Even mid-size studios are finding new, affordable ways to commercialise their IP through fan products.

Also, we can’t forget cross-platform releases and spin-offs. Gone are the days of console exclusivity. Games like Helldivers 2 exploded in popularity when released on new platforms. Meanwhile, spin-offs like Final Fantasy Tactics or Hyrule Warriors show how franchises can expand their universe, attract new players and stretch the commercial lifespan of their IP, often at a fraction of the development cost of a mainline title.

Finally, remasters and reboots are big business. Nostalgia sells, just look at Oblivion Remastered or Dragon Quest III HD-2D, both topping sales charts in 2025. The audience for retro gaming has never been bigger.

When creativity meets complexity – the legal side of game IP

Of course, every time a game studio moves into a new market, from Netflix deals to perfume collaborations, lawyers get busy, because every shiny new opportunity comes with new risks and responsibilities. I’m going to explain five of the biggest legal issues game IP owners need to level up on.

Knowing what you actually own

It sounds basic, but you’d be surprised how often game developers don’t have full clarity on their IP rights, especially when dealing with older contracts, multiple co-developers, or assets created by freelancers.

Before you can spin your game into a movie, a soundtrack or a branded plush toy, you need to make sure you actually own the rights to do so. That means auditing your IP portfolio, checking historic agreements and confirming that all creators have transferred the necessary rights. Otherwise, you could end up with a licensing nightmare mid-project.

The sophistication gap

Not all partners are created equal. Some are billion dollar studios with legal teams that rival yours, others are small independent creators who’ve never seen a 30-page IP contract – each brings different risks. The smaller players might sign whatever you hand them, but they might also lack the resources to fix problems later. Meanwhile, larger corporations might push for tougher terms, longer negotiations and more control. Either way, communication, clarity and agility are key to keeping deals on track.

Navigating the IP ownership maze

Collaboration is great, until both sides think they own the same thing. In multi-party projects, new IP is often created – new characters, storylines or designs derived from the original game world. Who owns those derivatives? Who registers the trademarks? Who handles enforcement if someone infringes? These questions should be nailed down early and not left to blow up after release, clear IP clauses prevent confusion (and litigation) down the line.

Relying on the right partners

Working with third parties, especially internationally, is often essential. However, that means trusting others with your brand, your reputation and your legal exposure.

Due diligence is non-negotiable. You need to know your partners can deliver, comply with regulations, and uphold your standards for data protection, product safety and accessibility. Since those partners may have their own subcontractors, control and visibility down the supply chain are crucial.