July 2024 –The Czech Republic will soon join a group of European countries that offer incentives to the video games industry. The video games industry has been one of the fastest growing sectors in the Czech Republic in recent years, and enjoys an excellent reputation worldwide – despite the lack of any kind of state support. However, this will likely soon change with the adoption of an amendment to the Czech Act on Audiovision (the “Amendment”).
Some of the most significant new changes introduced by the Amendment are the transformation of the current Czech Film Fund into the Czech Audiovisual Fund (the “Fund”) and the extension of the state incentive system to include the video games industry.
According to the Amendment, state support will be provided via grants, with the state receiving a share of any profits. Grants will be non-repayable, with the Fund's share of potential profits from the particular project indicated in the decision of the Czech Audiovisual Fund to grant the given incentive.
Prospective applicants for such incentives will need to respond to a Call for Applications issued by the Fund, which will specify the deadline for the submission of applications for support and the list of categories for which the support applies. Support will be available for the development or production of video games, and also, for instance, for education and training or conferences in the field of video games.
The Amendment has just passed its first reading in the Chamber of Deputies of the Czech Parliament (the lower chamber) and is expected to be adopted by the end of 2024, and to take effect in January 2025.
Those considering how to finance a potential video game project, or those who have any legal questions related to the upcoming video games incentive framework, please do not hesitate to contact us. Our team of video gaming law specialists is standing by to offer guidance and counsel.
Authors: Petr Bratský, Managing Associate, Antonín Dvořák, Legal Assistant