There has been a recent surge of online discourse on social media platforms such as X and TikTok on whether physical media is superior to digital content licensing or digital media. Now, regulators in California have set their sights on the digital content licensing debate.
The main argument in favor of physical media is that once you purchase an item, be it a DVD, a vinyl record, or a physical copy of a video game, you own it. This might seem obvious at first, but in today’s world, owning stuff has become more and more ambiguous.
This is why California Governor Gavin Newsom signed law AB 2426 to fight “disappearing licenses” of digital games, movies music, and e-books. At its core, the law will force digital stores, such as the PlayStation store in California, to tell customers they are just buying a license to use digital media and don’t actually own it.
The law on digital content licensing will come into effect in 2025 in California
Once the law on digital content licensing comes into effect in 2025, digital stores that operate in the state of California will not be able to utilize words such as “buy” or “purchase” because that would imply customers own the content. In reality, they are merely purchasing a digital content license.
Stores will only be able to use these words if they inform customers that they are not getting unrestricted access to the content they are buying.
Digital stores will also have to inform customers they are buying a digital license that can be revoked, as well as set a list of all the restrictions that come with the license itself. Online stores that do not comply with California’s new digital content licensing law could be fined for false advertising.
Why is this law being introduced?
Digital policy analysts have stated that this law comes in response to companies like PlayStation and Ubisoft. The latter deleted copies of the popular racing videogame The Crew from players’ accounts after they shut down the servers for the online-based game.
Sony, who owns and runs PlayStation, has also acted in similar ways. In 2023, the company announced it would delete Discovery content that users had bought, but they backtracked and didn’t proceed with this.
Acts such as these are why California legislators have deemed it appropriate to introduce the new digital content licensing law. However, it is worth mentioning that the new law will not apply to stores that offer what they call “permanent offline” downloads.
California Assembly member Jacqui Irwin said in a press release, “As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important.”
She added, “I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”