Revenue P2E and Web3 game monetisation The reason this may be of particular in a decentralised platform is concern for games is that they raise a more complex. See our section number of legal issues that someone on Protecting games for more ultimately needs to be responsible information. for. For example, developments in child protection laws, like the UK’s Global nature of Web3 games Online Safety Act and Children’s Web3 games are inherently global, Code (covered elsewhere in this which complicates jurisdictional guide), may be particularly difficult issues as determining the applicable to comply with in a decentralised law and jurisdiction in disputes or context. Legal obligations to ensure regulatory enforcement actions transparency about the odds of is very challenging. Web3 games earning in-game assets and the must navigate a patchwork of real-world value of these assets local regulations concerning online are important but especially so gambling, consumer protection, in the context of children playing and digital assets. such games. Other legal risks inherent to Intellectual property Web3 games The decentralised nature of Web3 While the above highlights some raises questions about the ownership of the key challenges Web3 games of in-game assets and intellectual face, there are also a number of property rights. Clarifying these risks inherent to any decentralised rights in a decentralised environment, application, and therefore to a especially when assets can be Web3 game. These include: traded outside the game, poses legal challenges. technical risks such as smart contract vulnerability (especially With user-generated content and given many smart contracts run the creation of NFTs, there’s a risk on immutable (unchangeable) of infringing third party IP rights. ledgers) Monitoring and enforcing IP rights 79