https://www.polygon.com/news/457071/new Skip to main content The homepage * Guides * Games * Entertainment The homepage Navigation Drawer close Search [ ] * What to Play * What to Watch * Guides + All Guides + Destiny 2 + Diablo 4 + Dragon's Dogma 2 + Elden Ring + Elden Ring DLC + FFXIV + Fortnite + God of War: Ragnarok + Modern Warfare 3 + Pokemon Go + Zelda: Echoes of Wisdom + Zelda: Tears of the Kingdom * Games + All Gaming + Tabletop + Nintendo + PC + PlayStation + Xbox * Entertainment + All Entertainment + Anime + Horror + Sci-fi + Fantasy * Deals + All Deals + Buyer's Guides + Sales Guides + Gift Guides * Puzzles + Puzzmo Home + SpellTower + Typeshift + Flipart + Really Bad Chess + Crossword * Newsletters * Video * Login / Sign Up * * * * * New California law means digital stores can't imply you're buying a game when you're merely licensing it Comments Drawer * News New California law means digital stores can't imply you're buying a game when you're merely licensing it The law will go into effect next year by Nicole Carpenter Sep 26, 2024, 9:36 PM UTC * * International Brands In Poland International Brands In Poland Photo: Anthony Wallace/AFP via Getty Images Nicole Carpenter Nicole Carpenter is a senior reporter specializing in investigative features about labor issues in the game industry, as well as the business and culture of games. When you turn on your Xbox Series X, open the Microsoft Store, and buy Farming Simulator 22, you might think you own the game, but you'd be wrong. You actually paid for a license to play the game -- not to own it. Companies can revoke the license at any time. It doesn't happen all too often, but it does happen, especially with older games: Ubisoft made headlines earlier this year when it delisted racing game The Crew in December, took its servers offline, then started to pull licenses to the game. Licensing vs. actually owning a game becomes an issue, once again, when you consider where your games go when you die -- you can't technically pass your license along to another person, per many companies' policies. A new California bill (AB 2426), signed into law by Gov. Gavin Newsom on Tuesday, is an attempt to bring transparency to the buying and selling of digital goods like movies, e-books, and, yes, video games. California assemblymember Jacqui Irwin introduced the bill, in part, after hearing about Ubisoft's move with The Crew. The law won't change the fact that we're all licensing games instead of actually owning them, but it will force companies that operate in California to be more transparent about it. Companies and storefronts that would have to comply include Microsoft with the Microsoft Store, Valve with Steam, Sony with the PlayStation Store, Nintendo with its eShop, and publishers with their own stores, like Ubisoft's Ubisoft Store. Related: * Where do your Steam games go when you die? Polygon has reached out to all previously listed companies but did not hear back by publication time. The law is expected to go into effect on Jan. 1, 2025, preventing companies that operate digital storefronts from using words like "purchase" or "buy" unless the company is clear that it's selling a license, not "unrestricted ownership interest in the digital good." This notice will have to be "distinct and separate" from other terms and conditions of the purchase, according to the text. The law doesn't apply to subscription-based services, free downloads like demos, or companies that offer "permanent offline download[s]" of digital goods. Companies will be fined for breaking the rules. "By sending AB 2426 to Governor Newsom, California is now the first state to recognize that when digital media retailers use terms like 'buy' and 'purchase' to advertise digital media licenses, they are engaged in false advertising," University of Michigan professor Aaron Perzanowski said in a news release from Irwin. "Consumers around the world deserve to understand that when they spend money on digital movies, music, books, and games, those so-called 'purchases' can disappear without notice. There is still important work to do in securing consumers' digital rights, but AB 2426 is a crucial step in the right direction." Digital purchasing is already ubiquitous, as physical media becomes less easy to find. Stores like Best Buy have stopped selling physical movies entirely, and it wouldn't be surprising to see more retailers follow. Physical video games use a disc or cartridge as a license, and that object is yours. But a company could still take servers offline, for instance -- ongoing access isn't guaranteed. Ownership of digital goods like movies and video games will continue to be an issue; beyond companies revoking licenses, it's also becoming increasingly common to see games being delisted from sale or pulled offline entirely, like with popular mobile game Kim Kardashian: Hollywood. In that example, players lost a decade's worth of digital purchases. Not only is it a consumer protection issue, but it's a preservation problem, too. See More: * Gaming * News * Nintendo * PC * PlayStation * Xbox Most Popular 1. 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