ESA opposes No Fakes Act, citing ruinous likeness liability for game studios
Summary
The ESA asked the US Senate Judiciary Committee to amend the No Fakes Act before its June 11 markup
The bill's "digital replica" definition covers standard game characters, not just deepfakes
Studios face two compounding risks: frivolous likeness suits and liability for legitimate AI development tools
"The No Fakes Act, as currently drafted, creates a level of uncertainty that poses a real threat to existing games and to the future of video game development in the United States"
01
Overbroad "digital replica" definition exposes every studio with realistic characters
The act covers any "newly created, computer-generated, highly realistic" likeness an individual "did not actually perform or appear" in
That language applies to standard NPCs, not just malicious deepfakes
Pierre-Louis flagged "thousands of background characters" where coincidental resemblance is statistically inevitable
The ESA concedes studios would likely win such suits
Litigating them would still be "economically devastating" regardless of outcome
02
Tool-level liability shifts legal risk upstream to publishers
The bill assigns liability for "tools and services used to create digital replicas"
Avatar creation systems and character customization menus fall within scope
The ESA argues the draft "fails to adequately differentiate" between purpose-built deepfake tools and legitimate multi-purpose software
Publishers using third-party AI middleware inherit exposure even when the toolmaker is the proximate source
03
Bill reaches markup with bipartisan support despite ESA resistance
Originally introduced in 2024, the No Fakes Act was reintroduced with bipartisan Senate backing in April 2025
SAG-AFTRA frames it as a consent-based federal framework protecting performers' voice and likeness
The ESA says proponents "have resisted accommodations to our unique concerns"
"While you may have heard there is no serious opposition to the bill, I am writing to register our industry's concerns"
Events
Companies
Games
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Locations
North America
SYNTHESIZED FROM:
- ESA warns 'No Fakes Act' fails to distinguish between deepfakes and digital replicas used in video games | GamesIndustry.biz
- ESA says anti-deepfake act could 'devastate' video game industry
- ESA warns No Fakes Act could create legal uncertainty for the video game industry | PocketGamer.biz
- ESA warns California games bill would burden developers and players | PocketGamer.biz
COMPILED BY GAMES ATLAS EDITORIAL
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