Lula sanctions legal framework for electronic games in Brazil

President Luiz Inácio Lula da Silva sanctioned, this Friday (3), the legal framework for the electronic games industry. The so-called Legal Framework for Games regulates the manufacture, import, commercialization, development of electronic games and their commercial use in Brazil. According to the Palácio do Planalto advisor, the sanction will be published in a regular edition of the Official Diary of the Union next Monday (6).

“I sanctioned the bill that creates the legal framework for the electronic games industry. With this, principles and guidelines for the economic sustainability of the sector will be established, including the interaction of electronic games with specific legislation in the cultural sector, extended tax incentives to the segment and guidelines for the protection of children and adolescents”, highlighted President Lula in a post on social media.

The new legislation was approved by the National Congress last month.

In the definition of electronic games, according to the law, the software (computer programs), the images generated from the connection with the player, known as gamer; video game console games and virtual reality (VR), augmented reality (AR), mixed reality (MR) and extended or immersive reality, both when gamer do the download of the game (downloads the game and saves the file on that electronic device, such as smartphone or compactor) or by streaming, which allows you to play the game without having to download a file. Do not fall into this category of gamer electronic gambling, betting of the bet, online poker and others involving cash prizes.

“The sector’s expectation with the sanction is that we can see investments and opportunities in the area multiplied. It is estimated that, over the next three years, we will see the entry of R$ 200 million to R$ 300 million annually in private investments in the sector, a multiplication on a basis of two to three times the total volume of employees in the sector in the next decade, and, therefore, the creation of opportunities that place Brazil at a more prominent level in the global production cycle”, stated Márcio Filho, president of the Association of Digital Game Developers of the State of Rio de Janeiro and specialist in games and society.

Children and teenagers

According to the text, the industry in the sector, through the developers of games, must protect children and adolescents from exposure to violent games or abuse. Furthermore, the framework provides for the creation of channels for complaints and reports of abuse to ensure the rights of this public in the digital world, and purchasing tools must seek the consent of those responsible for child and adolescent users.

Another point raised by the substitute text is the possibility of electronic games being implemented in the National Digital Education Policy, being used in schools as a form of teaching, with the creation of a free-use repository, in accordance with the National Common Curricular Base (BNCC ).

Incentives for the sector

The bill sanctioned by President Lula seeks to regulate all relevant aspects of production. According to the text, the electronic games industry will have incentives for the sector’s economy and tax waivers similar to those provided for the cultural sector in the Rouanet Law and the Audiovisual Law to stimulate the production of content, with a reduction in taxes, such as the Tax on Industrialized Products (IPI) on equipment necessary for game development.

The new legal framework also regulates the activities of technology professionals. Everyone involved in the development of electronic games will be included in categories such as individual microentrepreneurs and in the Brazilian Classification of Occupations of the Ministry of Labor and Employment.

Furthermore, electronic gaming companies in the country will be formally recognized, through the determination of the creation of the National Code of Economic Activity, relating to gaming-related activities.

Companies, individual entrepreneurs or micro-entrepreneurs may also receive special treatment under the Inova Simples regime, Simples Nacional, as well as in partnerships with scientific, technological and innovation institutions.