This should be fun for a service like Twitch. What happens when a streamer on their platform starts playing a game with a copywritten song playing on the game's radio or background? Many times the streamers themselves are not aware that this is a crime.
This is already a problem on Twitch. Cyberpunk 2077 claimed to have a "streamer mode" where no copywritten music was played, but they didn't actually ship the feature.
In this case, I don't see it as a 'bug' though... I would see something like not playing music at all or playing the same unencumbered song on repeat as a bug.
Playing only a single song just long enough to earn a copyright strike means this feature doesn't exist. Instead, it's an implementation of a checkbox on a settings screen that enables some side effects that are not what the text next to the checkbox describes.
Original music is created by the game creators and streaming rights are included in the software EULA.
Licensed music is created by third party artists and is usually not included in the software EULA because the music artist/publisher does not grant that type of license to the game creator/publisher. A gamer streaming gameplay that includes the copyrighted song will trigger automatic copyright protection on the streaming service they use and is subject to DMCA takedowns.
Modern games often include a "streamer mode" which replaces or mutes the licensed music.
Just like GDPR, doing business in a country subjects you to the laws of said country regardless of where you are incorporated. If this wasn’t the case, a lot of companies would only have to follow the laws of Panama or the Cayman Islands.
It will eventually be sorted out in the contracts whereby the games get licences for whatever content: music performed in-game is 'part of the experience' etc. and/or because they are playing a game with the music artists will claim that it's an original work in it's totality.
Twitch already has mostly DRM aware content creators - I hear them talking about 'rights' quite a lot in their streams.
My issue with these copyright strikes on streams is: who will actually watch a stream just to listen to a song played in the background of a videogame with all the game sound effects and dialog and streamers talking?
It's the worst listening experience ever. It's much easier to just go to YouTube and listen to the song uploaded by an official channel.
This law requires that the service as a whole be primarily designed for or marketed to the piracy market. So there’s no real grey area, we can be confident it won’t apply to Twitch.