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Can Video Games Use Parodies of Real Brands? Trademark Law Explained

By Freedom251 Team · · 3 min read

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Sometimes, but parody is not a blanket defense. A fictional brand used as part of a game’s story or setting may receive protection as expressive content, while a mark used to brand the developer’s own goods faces ordinary trademark scrutiny. Whether players could think the real brand owner sponsored or made the game remains a fact-specific question.

Why an in-game parody is not automatically safe

Trademark law can reach uses that are likely to confuse consumers about a product’s source, sponsorship, or endorsement. A joke or altered name may help audiences recognize a reference and understand it as commentary, but calling something a parody does not settle whether consumers are likely to be confused.

A key distinction is the mark’s role. Is it part of the fictional world—such as a sign on a virtual storefront—or is it being used to identify the game, studio, or another product as coming from the defendant? The expressive context and the possibility of confusion matter; the label “parody” is not a substitute for examining the actual use.

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What the Pig Pen case decided

In E.S.S. Entertainment 2000, Inc. v. Rock Star Videos, Inc., decided November 5, 2008, the Ninth Circuit considered the fictional “Pig Pen,” a strip club in Grand Theft Auto: San Andreas. The real-world operator of the Play Pen alleged trademark and trade-dress infringement. The appellate court affirmed judgment for Rockstar, finding on the record before it that the modified mark was not explicitly misleading and that the depiction was protected expression.

The court viewed the game as pursuing an artistic goal: a cartoon-style parody of East Los Angeles. The Pig Pen was one element of that fictionalized setting. The outcome was tied to how the mark appeared in the game and whether consumers would think the real business sponsored or produced it. It was not a ruling that every game may reproduce or imitate any real brand.

The case is a Ninth Circuit decision, so it is a regional appellate example, not a nationwide permission slip. The applicable analysis can depend on the claim, jurisdiction, and facts of the particular use.

How Jack Daniel’s changed the analysis

In Jack Daniel’s Properties, Inc. v. VIP Products LLC, decided June 8, 2023, the U.S. Supreme Court held that the Rogers threshold test does not apply when a defendant uses the challenged mark as a designation of source for its own goods. The Court did not decide whether Rogers applies in every other context.

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That distinction matters for games. A brand appearing within expressive game content is different from an imitated mark used to brand the game itself, the studio, or the developer’s own goods or services. The Supreme Court put the point this way: “The test has not insulated from ordinary trademark scrutiny the use of trademarks as trademarks, ‘to identify or brand [a defendant’s] goods or services.’” The opinion was authored by Justice Elena Kagan.

The Court also held that the Lanham Act’s dilution exclusion for noncommercial use does not shield parody, criticism, or commentary when a defendant uses the mark as a source identifier for its own goods. That holding does not make parody irrelevant to every trademark dispute; it means parody is not a categorical safe harbor for source-identifying uses.

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Questions to ask about a fictional game brand

  • What is the mark doing? Is it simply part of the game world, or is it identifying the source of the developer’s own product or service?
  • Does the reference fit the expression? Does it contribute to the setting, story, criticism, or humor, or is its connection to the work merely asserted?
  • Could players infer sponsorship? Consider whether consumers might believe the real brand owner made, endorsed, or sponsored the game. Parody alone does not answer that factual question.
  • What claim and jurisdiction apply? Infringement and dilution involve distinct rules, and the Pig Pen ruling came from the Ninth Circuit.

These questions help explain the relevant distinctions; they are not a legal test that replaces the law governing a particular dispute.

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Intellectual propertyparodytrademark lawVideo Games

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