General
German Esports Associations: An Overview
Esports, or electronic sports, has seen a significant rise in popularity over the past few years. With its increasing prominence, the need for structured organizations and associations to oversee and promote the sport has become evident. In Germany, the establishment and management of associations, including those related to esports, are governed by specific regulations and guidelines.
Definition of an Association
An association is a union of several persons for a specific purpose, which does not aim to generate profit. It is characterized by its self-organization, the pursuit of a common purpose, and the voluntary membership of its members.
What is an Association in Germany?
In Germany, an association (Verein) is a voluntary union of several persons to pursue a common purpose. The purpose can be of any nature, provided it is not primarily aimed at generating economic profits.
How is an Association Founded?
To establish an association in Germany, at least seven members are required. The founding members must draft a statute, which serves as the constitution of the association. This statute should include details such as the association’s name, purpose, and headquarters. Once the statute is drafted, a founding meeting is held, during which the board is elected.
What are the Legal Forms of Associations?
There are two primary legal forms of associations in Germany:
- Registered Association (e.V.): This is the most common form and offers several advantages, including legal capacity. The association must be entered into the association register to achieve this status.
- Non-registered Association: This form does not have legal capacity and is not entered into the association register.
What are the Advantages of Registering an Association?
Registering an association provides it with legal capacity, allowing it to enter into contracts, acquire rights, and incur liabilities. Moreover, registered associations can apply for public funding and are eligible for tax benefits.
Legal Basis for Associations in Germany
The legal basis for associations in Germany is primarily found in the BGB. Here are some pertinent sections:
- § 21 BGB: If the association is to last indefinitely, a resolution to dissolve it requires a majority of three-quarters of the votes cast unless the articles of association provide otherwise.
- § 26 BGB: The association must have a board of directors that represents it judicially and extrajudicially. The general assembly appoints the board of directors. Unless the articles of association determine otherwise, it consists of the chairman and his deputy. Both are entitled to represent the association alone. The articles of association can determine that the board of directors consists of only one person or that further board of directors members are to be appointed.
- § 27 BGB: The board of directors is elected by the general assembly for a period of four years. Re-election is permissible. The board of directors remains in office until a new board of directors is elected. If a member of the board of directors resigns during his term of office, the general assembly elects a replacement member for the remaining term of office of the resigned member.
- § 28 BGB: The board of directors is responsible for all affairs of the association insofar as they are not assigned to another organ of the association by law or the articles of association. It executes the resolutions of the general assembly. In matters of particular importance, it can obtain the general assembly’s decision. It should draw up guidelines for its work, which require the approval of the general assembly.
- § 31 BGB: The association is liable for its obligations with all its assets. The personal liability of the members is excluded.
- § 32 BGB: The resolutions of the association are to be recorded in minutes and signed by the chairman of the meeting.
- § 33 BGB: The articles of association can only be amended by a general assembly resolution. Unless the Articles of Association determine otherwise, a resolution to amend the Articles of Association requires a majority of three-quarters of the votes cast.
- § 54 BGB: Associations that do not aim to make a profit and whose purpose is not a commercial business are not entered in the commercial register.
What Obligations do Associations Have?
Associations in Germany have specific obligations, including the maintenance of a list of members, proper accounting, and the holding of regular general meetings. Additionally, they must adhere to the principles outlined in their statutes.
Dissolution of an Association
The dissolution of an association can be voluntary or forced. A voluntary dissolution requires a three-quarters majority of the members. In the case of forced dissolution, reasons can include insolvency or the achievement or impossibility of the association’s purpose.
Conclusion
Setting up an esports association in Germany requires a thorough understanding of the legal framework provided by the BGB. By adhering to these regulations, esports stakeholders can ensure that their associations are legally compliant and well-structured to represent the interests of their members.
Image source: Christo, CC BY-SA 4.0, via Wikimedia Commons
General
CMS Advises on Inaugural Esports World Cup in Riyadh
The international full service law firm CMS has provided comprehensive legal counsel to the Esports World Cup Foundation in organizing the first-ever Esports World Cup (EWC), set to take place in Riyadh, Saudi Arabia, over eight weeks from July to August 2024.
The Esports World Cup is poised to make history, with over 1,500 players from more than 60 countries competing in 21 of the world’s most popular games for a share of a record-breaking USD 60 million prize pool.
“This is a monumental event in the history of esports,”
commented Ralf Reichert, CEO of the Esports World Cup Foundation.
“We are witnessing the convergence of gaming and sports as universal languages, uniting the global community through competition, advancing the esports industry, and fostering growth across the entire network.”
A global CMS team, led by Dr. Pietro Graf Fringuelli and Samuel Oustayiannis, consisting of over 30 lawyers from Germany, the UK, and Saudi Arabia, provided legal advice on all aspects of the EWC. This included team agreements, tournament rules, sponsorship contracts, media rights distribution, and partnerships with game publishers.
Dr. Pietro Graf Fringuelli, Partner at CMS Germany and Co-Head of the international CMS Technology, Media & Communications Group, stated,
“The esports industry is growing at an astonishing pace, drawing record numbers of viewers worldwide. The EWC will transform the entire esports landscape and contribute to developing a sustainable ecosystem.”
The Esports World Cup, supported by major sponsors like Sony, TikTok, Amazon, Adidas, Pepsi, and MasterCard, is an annual tournament series featuring over 450 teams globally. The event is accessible to both professional esports players and gaming enthusiasts, with broadcasts on television and streams across various digital platforms. Featured games include League of Legends, Call of Duty: Warzone, Counter-Strike 2, EA Sports FC 24, and Fortnite.
CMS Partner Sam Oustayiannis, leading the UK team on media rights and partnerships, added,
“The Esports World Cup is a unique event attracting significant interest from competitors, sponsors, and the media. We’ve assembled a collaborative team across multiple offices to cover all legal aspects, ensuring a successful and enjoyable event. We eagerly anticipate the future of the Esports World Cup!”
The EWC continues in Riyadh until August 24, 2024, marking a new chapter in esports with CMS playing a crucial role as the legal advisor to the organizers.
CMS Legal Team Overview for Esports World Cup
CMS Germany
- Dr. Pietro Graf Fringuelli – Lead Partner, TMC (Technology, Media & Communications)
- Dr. Sebastian Cording – Partner, TMC
- Dr. Markus Häuser – Partner, TMC
- Dr. Patrick Ehinger – Counsel, TMC
- Dr. Fiona Savary – Counsel, TMC
- Dr. Felix Glocker – Senior Associate, TMC
- Georg Schneider – Senior Associate, TMC
- Lara Grünberg – Associate, TMC
- Dr. Malte Bruhns – Partner, Corporate/M&A
- Dr. Henrik Meurer – Associate, Corporate/M&A
- Dr. Martin Gerecke – Partner, IP (Intellectual Property)
- Dr. Tobias Nasr – Senior Associate, IP
- Dr. Robert Budde – Partner, Commercial
- Phillip Bubinger – Counsel, Commercial
- Prof. Dr. Björn Gaul – Partner, Labor, Employment & Pensions
- Victoria Kaule – Counsel, Labor, Employment & Pensions
- Hanna Hamacher – Senior Associate, Labor, Employment & Pensions
- Thomas Gerdel – Partner, Tax
- Dr. Hendrik Arendt – Senior Associate, Tax
- Christoff Soltau – Partner, Antitrust, Competition & Trade
- Dr. Denis Schlimpert – Counsel, Antitrust, Competition & Trade
CMS Saudi Arabia
- Mohammed Aldowish – Partner
- Wala Alawajy
- Sara Alsaud
- Reem Alsmail
CMS United Arab Emirates
- Ben Gibson – Partner
CMS UK
- Sam Oustayiannis – Partner
- Rebekah Hayes – Partner
- Coralie Barker
- Georgia Clark
- Harry Hall
- Laurel O’Dell
- Carter Rich
- Hamish Temporal
- Daniel West
General
Introducing Valentin de Roany: Project Coordinator for Esports Tournaments and Legal Databases at Esports Legal News
Esports Legal News is thrilled to welcome Valentin de Roany as our new Project Coordinator for Esports Tournaments and Legal Databases. Valentin brings a unique blend of legal acumen and esports expertise, honed through years of dedication in both fields.
Currently in his final year of law studies, Valentin has already made a significant impact in the legal world. A distinguished mooter, he represented his university at an international competition, playing a key role in securing a top placement for his team. His passion for the law extends beyond the classroom, where he revitalized mooting and negotiation programs, mentoring new students and sharpening the skills of seasoned advocates.
Valentin’s journey in the esports realm is equally impressive. He has served in various coaching roles, nurturing the growth of promising talents and leading teams to success. His leadership in a grassroots esports organization, where he navigated cultural and linguistic challenges, showcases his ability to build bridges and drive success across different regions.
With dual French-Australian citizenship, Valentin is well-versed in connecting diverse esports communities. He brings his rich experiences to Esports Legal News, where he will streamline complex legal information and contribute to the growth of our esports initiatives. Though he’s always eager to share his insights, Valentin remains careful to distinguish his advice from formal legal counsel.
We are excited to see Valentin apply his leadership, strategic thinking, and passion for esports to help drive Esports Legal News to new heights.
General
Play By The Rules: Esports Legal Forum Announced for ESI Lisbon 2024
Esports Insider’s events arm ESI Events has announced the launch of “Play By The Rules,” a pioneering legal forum dedicated to the esports sector, taking place as part of ESI Lisbon from 23 September to 25 September 2024.
In cooperation with international lawyers Leonid Shmatenko (Eversheds Sutherland) and Rodolphe Ruffié-Farrugia (Clifford Chance) as well as Esports Legal News, this inaugural event aims to set the standard for esports-focused legal conferences worldwide.
ESI Events and the co-organisers intend for “Play By The Rules” to provide a platform for legal professionals (including attorneys, in-house-lawyers, academics and students), industry stakeholders, and esports enthusiasts to delve into the complex legal landscape of the esports sector. The forum will have a focus on player contracts, intellectual property, governance and regulation, streaming rights and more.
Key Dates
- September 24, 2024: Play By The Rules Conference (Concurrent with ESI Lisbon Day 1 and taking place at the same venue)
- September 25, 2024: Exclusive access for PBTR speakers, sponsors, and VIP guests to ESI Lisbon Day 2 and the SBC Summit
“Play By The Rules” will cover a broad spectrum of legal questions affecting the global esports industry through stage talks, roundtable discussions and focussed group networking, with an emphasis on creating actionable takeaways for attendees. Key areas of discussion will include:
- Player contracts and rights
- Intellectual property challenges
- Governance and regulatory frameworks
- Streaming and broadcasting rights
- Dispute resolution mechanisms
Attendees will also have the opportunity to attend the evening social event, the ESI Film Festival at the MEO Arena with food and beverage, gaining detailed insights into esports, gaming and intersecting industries through short films that shine a light on stories behind the screens.
Running alongside the SBC Summit, which anticipates over 25,000 attendees, ESI Lisbon will feature:
Already confirmed attendees at ESI Lisbon include:
- Formula One
- Savvy Games
- UNICEF
- Samsung Ads
- OverActive Media
- Deutsche Telekom
- Radisson Hotel Group
- Mercedes-AMG PETRONAS Formula One
- Twitch
- BLAST
- ESL FACEIT Group
- Chess.com
- Electronic Arts
- Ubisoft
- City Football Group
- Visit Raleigh
- Team Liquid
- Moonton
- Visit Qatar
- OG Esports
- Wasserman
- & many, many more
Sam Cooke, Co-Founder and Managing Director at Esports Insider, said:
“We are thrilled to launch ‘Play By The Rules’ in partnership with Leonid Shmatenko of Eversheds Sutherland and Rodolphe Ruffié-Farrugia of Clifford Chance as part of ESI Lisbon 2024. Our new esports legal forum represents a first and important step in addressing the complex legal challenges within the esports industry, providing a dedicated forum for discussion, innovation, and actionable solutions. By bringing together the brightest minds in esports law, we aim to set a new standard for legal excellence in this rapidly evolving sector.”
Leonid Shmatenko, Senior Associate at Eversheds Sutherland and Founder of Esports Legal News, commented:
“After an extensive search for a comparable event in the market, I found numerous conferences that addressed video games law but none that focused specifically on the unique legal challenges in esports. Esports is a rapidly growing field with its own set of legal considerations, and it is high time we had a dedicated platform to address these issues. I approached ESI with this concept and their enthusiasm and commitment to excellence made them the perfect partner. Together, we aim to set new standards in the esports law conference world, providing invaluable insights and fostering a deeper understanding of the legal landscape in esports.”
Rodolphe Ruffié-Farrugia, Counsel at Clifford Chance and co-founder of Esports Legal News, said:
“For years now, esports has been a booming industry and we have witnessed the emergence of a wide variety of professional stakeholders, including the players themselves, their teams, the leagues, tournament organisers… Yet, the legal industry has not been as quick in adapting to the unique needs and high stakes at play in esports, no doubt because lawyers and gamers tend to evolve in different worlds. Knowing well these communities from within both personally and professionally, I have made it a mission years ago to build bridges between them. I feel very lucky to have found like-minded peers in Leonid and ESI to create this first-of-its-kind summit, a turning point in bringing esports and the law together.”
Tickets to B2B esports, games and creator economy event and industry festival ESI Lisbon are still available. Early bird tickets offering 33% off are available until August 23rd. For more information and to purchase a ticket, click here.