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How Parody and Trademark Law Apply to Fictional Brands in Video Games

Video games can use fictional parodies of real brands, but the outcome depends on whether the mark is expressive content, a source identifier, or likely to confuse players about sponsorship.
WorldVideo Games Length3 min Posted Quest giverVGSources Team
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Yes, a video game can depict a parody of a real brand, but parody is not an automatic defense to a trademark claim. Courts examine how the mark is used, whether it contributes to the game’s expressive content, and whether players could think the real brand owner made or sponsored the game. A Ninth Circuit case protected one fictional in-game business; it did not create a general license to copy brands.

Why the role of the brand in the game matters

Start by asking whether the imitated mark appears as part of the game’s world or identifies the developer’s own game, studio, or other goods and services. A fictional shop, restaurant, or business name encountered during play is different from a mark used to brand the game itself. That distinction is especially important after the Supreme Court’s 2023 decision in Jack Daniel’s Properties, Inc. v. VIP Products LLC.

In Jack Daniel’s, the Supreme Court held that the Rogers threshold test does not apply when the challenged mark is used as a designation of source for the defendant’s own goods. The Court did not decide whether Rogers is appropriate in every other context. So its ruling does not mean that every in-game reference is subject to the same threshold rule; the mark’s actual role matters.

What the Pig Pen case decided—and what it did not

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 Play Pen operator alleged trademark and trade-dress infringement. The appellate court affirmed judgment for Rockstar, finding that the game’s modification of the mark was not explicitly misleading and was protected expression on the record before it.

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The opinion describes the game’s artistic goal as depicting a cartoon-style parody of East Los Angeles, with the Pig Pen as one element of the fictionalized setting. The decision turned on that expressive context and the way the business appeared in the game; it did not hold that any developer may freely reproduce or imitate real-world brands. It is a Ninth Circuit decision, not a nationwide blanket permission.

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How to assess a fictional brand’s use

These questions help explain the issues courts may consider, but they are not a substitute for applying the law that governs a particular dispute.

  • What role does the mark play? Is it content inside the game world, or does it identify the developer’s own goods or services?
  • Does the reference contribute to the work? Does it help establish the setting, story, criticism, or humor, or is its relevance merely asserted after the fact?
  • Could consumers be confused about sponsorship? Might players think the real brand owner made, endorsed, or sponsored the game? Parody alone does not settle this factual question.
  • What claim and jurisdiction are involved? Infringement and dilution have distinct rules, and the cited video-game decision comes from the Ninth Circuit.

Parody, infringement, and dilution are not the same question

A parody can help a developer argue that players recognize the reference as commentary or humor rather than as the real brand’s product. That context may matter to confusion analysis and protection for expressive works. But calling something a parody does not end the analysis: a court still considers the challenged use itself and whether the real brand could be mistaken for the source or sponsor.

Dilution has a separate issue. In Jack Daniel’s, the Supreme Court held that the Lanham Act’s exclusion for noncommercial use does not shelter parody, criticism, or commentary when the defendant uses the mark as a source identifier for its own goods. The 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.

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What this means for game developers and players

A fictional brand placed within a game’s expressive setting may be evaluated differently from a mark used to sell or identify the game itself. The Pig Pen ruling shows that an in-world parody can be protected in a particular factual and regional context; Jack Daniel’s clarifies that parody does not remove source-identifying uses from ordinary trademark scrutiny. Neither case makes the result automatic. Whether a specific use is lawful depends on the facts, the claim, and the governing jurisdiction.

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