This chapter builds a theoretical foundation for the proposed eco-balanced approach to copyright protection for VGs. It first introduces basic information on VGs, such as their definition and classification. Next, it explains the purpose of describing copyright protection for VGs in the context of an “ecosystem” and examines interests balance theory and incentive theory in the VG context. The chapter then identifies the challenges posed by the current copyright regime for VGs: the ineffectiveness of the copyright protection models as applied to VGs, imprecise delimitation of copyright infringement in game adaptation, uncertainty regarding players’ rights to their modified games, controversy regarding the legitimacy of live game streaming without authorization and the potentially addictive nature of VGs. Based on these challenges, the chapter emphasizes the need to construct an eco-balanced copyright regime for VGs to promote both economic efficiency and social welfare.