Watch this space in July

As part of the UK long term economic plan the video games sector is being nurtured by ensuring that the right conditions are in place. Video games companies have been able to claim tax relief on the production costs of games certified as culturally British from August 2014.

Video games must achieve a level of points which they are awarded based on their cultural content, cultural contribution and the location of the game’s development and nationalities of key personnel working on the project.

Video games tax relief builds on the model of the film tax relief. Like the High-End TV and animation tax reliefs, development companies are eligible for a payable tax credit worth 25% of qualifying costs.

95% of UK video games developers are SMEs. It is estimated that this new corporation tax relief will provide around £35 million of support per year to the sector.

In the first six months of the tax relief, 32 games received final or interim certification, meaning that they qualify under the cultural test and can claim tax relief from HMRC. These games have made a total spend in the UK of £47 million between them.

Nine games have already received a final certification and been released, with a UK spend of £2.3 million between them, or £256k per game on average.

For the 23 games that currently have interim certification and are in production, the expected UK spend is £45 million, or approximately £2 million per game on average. An additional detail is provided for the games in interim certification: their total budget is expected to be £54 million, so 82% of their budget is being spent in the UK.

A ministerial answer in Parliament last December revealed that the pace of applications has recently increased, which is not reflective in these figures. Early indications are therefore that momentum is now gathering, and hopefully next year’s statistics will be even more successful. However, as set out in the manifesto, more work still needs to be undertaken to promote the UK’s game tax relief internationally as a great place to make and develop games.

This is not only good for the video games industry but also for all the freelance professionals working in this sector.

Computer Arts magazine have looked back on last year’s most prominent visual aesthetics and predict the trends that will shape design in 2015.
2014 moved away from the ‘heritage’ aesthetic that dominated graphics and branding over the previous few years and made more use of digital technology to shape its art. Four major movements in 2014 were:
1. Digital surrealism – digitally rendered imagery creating 3D effects for flat surfaces.
2. Gaming apps took a new direction with games like Lands End by usTwo which showed that ethereal, digital dreamlike landscapes can be as popular as the aggressive shoot out genre.
3. Generative design, created using generative software and computer algorithms, to customise patterns based on people’s design preferences. Many consider this type of technology is enabling self-expression and uniqueness.
4. Op Art, optical illusions, naturally lending themselves to the digital realm. These were especially brought to life through gifts and short animations.
The trends predicted for 2015:
1. The work inspired by digital technology will continue into print.
2. Retro influences will be taken from the 80’s and 90’s e.g. early computer graphics, bad taste and iconic brand motifs.
3. Sci-fi and space following the launch of major film launches in the genre.

The new copyright regulations came into force earlier this month, introducing a new right to make personal copies of lawfully purchased copyrighted material without rights holders’ permission. They also introduce new limited rights to quote publically available copyrighted works and use copyrighted material in works of parody.

The new regulations are an attempt to modernise copyright rules for the digital age.
Going forward there may be an element of uncertainty about how the new exceptions should be interpreted and there may be short term disruption for those selling on the internet however the creation of a wider accessible market place for selling copyrighted content should benefit rights holders in the long term.

The parody and quotation exceptions are qualified by an overarching requirement that the use of copyrighted material is ‘fair dealing’, a concept under UK copyright law that essentially limits the use of copyrighted material to that which is necessary for a desired and permitted purpose and which does not unduly harm the interests of rights holders.

The reforms are more “pragmatic” than “comprehensive and there are calls to completely overhaul the existing Copyright, Designs and Patents Act but for the moment this appears too time consuming and challenging an exercise. In the future UK copyright laws are more likely to be shaped by EU dictate which is in their current agenda.