Arcade game manufacturers employ multi-layered strategies to protect their intellectual property against counterfeit and bootleg machines. Leading companies like Bandai Namco and Sega implement hardware-based authentication systems where original PCBs require verification through encrypted chips before operation. Many manufacturers embed holographic security seals and unique serial numbers on both cabinets and circuit boards for visual verification.

The industry increasingly utilizes blockchain technology to create digital twins of arcade machines, recording maintenance history and ownership transfers on immutable ledgers. Manufacturers also conduct regular market surveillance, working with international law enforcement to raid unauthorized operations. In 2022, Japanese authorities seized over 200 bootleg machines following joint investigations with major arcade companies.

Legal measures include pursuing DMCA takedowns against counterfeiters and filing lawsuits that have resulted in significant damages awards. Trade organizations like the American Amusement Machine Association establish certification programs to help operators identify genuine equipment. Some manufacturers now incorporate remote monitoring systems that automatically report unauthorized software modifications to central servers.

Despite these efforts, the global nature of the arcade market presents ongoing challenges. Manufacturers continue developing new anti-tampering technologies while educating arcade owners about the safety risks and performance issues associated with counterfeit machines. Industry analysts estimate that anti-piracy measures prevent approximately $300 million in annual losses for legitimate arcade manufacturers worldwide.