To my understanding the idea is that if a company licenses some 3rd-party component for their game, the component would either need to be severable from the game while still leaving it reasonably playable, or the license would need to permit people who have purchased the game to use that component. This is going foward, not applying retroactively to existing games.

I think that's still fairly favorable to game publishers compared to most other purchased goods. If you manufacture an office chair and license a patented swivel mechanism, the license you acquire cannot require you to break purchasers' chairs after the license expires, nor even to go around their homes swapping out the mechanism (which analogously may still be permitted for games).

Moreover if the rightsholder for that patent had been licensing only under the terms that the purchased chair is destroyed after 5 years but then a change in consumer protection law prevents that practice, they'd need to license it out under more reasonable terms (like you can only sell the chairs with the mechanism for 5 years, but there's no limit on how long people can use the mechanism in their purchased chairs) - otherwise they'd get no business.

> If you manufacture an office chair and license a patented swivel mechanism, the license you acquire cannot require you to break purchasers' chairs after the license expires, nor even to go around their homes swapping out the mechanism (which analogously may still be permitted for games).

The big difference here is that you’re applying B2C terms on B2B licenses. This would essentially ban enterprise B2B licenses for video game software which is insanity

> The big difference here is that you’re applying B2C terms on B2B licenses.

Both are cases of B2B licensing with the latter business then selling a product on to consumers.

> This would essentially ban enterprise B2B licenses for video game software which is insanity

I don't see how. If for instance some company develops an audio processing library, they can still license it out to a game development company for a limited time - just that the license would be "the company can no longer sell games with this technology after the license expires", opposed to anything that would prevent functioning of the already-sold games. Or rather, they could stipulate the latter in their license, but then their market would be limited to game development companies willing to patch it out after the license expires.