In the world of eSports, players play computer and gaming system games for profit, while fans watch and even create wagers on who will win. This seemingly innocent phenomenon has grown tremendously in recent years, and now thousands will come to live events where leading teams of gamers go head to head against each other, battling to see who can come out on top. Online viewing of popular tournaments can draw millions of viewers. With this phenomenon, video gaming has become a spectator sport.
The rise of eSports may be considered a new field of law. While interesting in terms of cultural trends, eSports has actually brought some unique concerns from a legal viewpoint. From contracts to endorsements, players, leagues and teams must understand the legalities of this new field of entertainment. In fact, the need for professionals who understand this field of law has grown to the point that the first law firm dedicated entirely to eSports law was opened in early 2017, according to ESPN.
In addition, the truth remains that the rise in esports has introduced some novel legal issues and new prospects and challenges that will continue to spring up. Several key areas demand some form of legal intervention seeing as things aren’t exactly clear. Given also that esport is a form of entertainment, entertainment law has to come in, too. Here are some of the legal concerns that have come to light through the growth of eSports:
Regulation
At the moment, the focus is on trying to determine exactly the classification of esports. As a result, many countries have not developed strong laws to regulate esports. In the international scene, the International Esports Federation (IESF) was founded in the United States in 2008 to regulate esports. However, the body faces some serious challenges, one of which is the lack of seriousness by its members.
In 2015, an anti-fraud agency for esports was established. This body is known as the Esports Integrity Coalition (ESIC). It has the duty of identifying and prosecuting players who engage in match-fixing, cheating, and e-doping.
Contract
Just like in most sports, contracts are a huge concern in this field. The terms, duration, pay, and other aspects of players’ relations with the leagues can be covered only with a contract. Similarly, league owners sign contracts with several other agencies in furtherance of their objectives. Expectedly, issues often arise from esport contracts. Notably, in the early stages of the sport’s development, players did not pay a lot of attention to their contracts. Hence, they were mostly taken advantage of by league providers. Nowadays, it is not uncommon for players to seek legal representation when offered contracts. This is to avoid rip-offs by the league and tournament providers.
Endorsements
One of the main means for players to make money in esports is through endorsements. An endorsement contract allows a company to exploit a player’s likeness, image, or reputation to further their brand. Players then obtain benefits in the form of monetary compensation, use of the company’s product, etc. Legal concerns here often relate to the nature and types of these endorsement contracts. Players need to be careful to be sure they are adequately cared for under the endorsement contract. For instance, the player has to make sure the payment is adequate. Similarly, players need to watch out for unfair clauses such as any prohibiting the support of any other brand.
Intellectual Property
Intellectual property is another area of law that impacts esports. The law recognizes that a game’s content is the property of the game developer. Hence, there could be issues of copyright infringement when organizers fail to obtain approval before publicly using the games. Event organizers need to obtain the consent and perhaps pay compensation, before making use or profiting from any game.
Apart from organizers, players also have to recognize the property rights of game developers. Players who stream on YouTube or other platforms need to be sure they have permission to do so. A developer will be within their rights to ban the streaming of their games on any platform.
The truth remains that esports has come to stay. Because of this, new prospects and challenges will continue to spring up. It is thus necessary that all stakeholders – players, league owners, tournament organizers, etc. – pay attention to these emerging trends.
