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Russia’s Controversial Esports Law: Bypassing Game Publishers in Licensing Agreements

In a move that has sparked controversy and debate within the global esports community, Russian lawmakers have drafted a groundbreaking proposal. This initiative, which circumvents the traditional process of obtaining licensing agreements directly from game publishers, could significantly alter the esports landscape in Russia and potentially influence global esports practices.

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Esports Tournaments Without Direct Licensing

The proposed legislation is designed to allow esports tournament organizers to conduct events without the need to enter into direct licensing agreements with intellectual property holders. This shift in the legal framework could have far-reaching implications for how esports tournaments are organized, potentially changing the power dynamics between game developers and event organizers.

The Three-Year Holding Mechanism

Central to the proposal is the creation of a public-law company (PLC), tasked with managing the licensing fees associated with the use of games in esports tournaments. These funds will be held for a period of three years, after which unclaimed money could be redirected to support Russian game developers or the Russian Esports Federation. This aspect of the proposal has raised concerns about the potential disregard for the rights of intellectual property holders.

State Duma’s Pivotal Role in Esports Future

During a significant meeting of the State Duma Committee on Physical Culture and Sports, key representatives from various sectors, including the Ministry of Digital Development and the Russian Esports Federation, convened to discuss the implications of these legislative changes. The meeting underscored the complexities involved in altering the current licensing framework within the esports industry and highlighted the potential for significant impact on both domestic and international levels.

Defining ‘Innovative Sports’ and Free Use

The proposed amendments introduce the term “innovative sports,” encompassing sports that integrate physical activity with digital technologies, and suggest a regime of free use of software in Russia for such sports. This legal redefinition raises questions about the balance between encouraging innovation in esports and protecting the intellectual property rights of game developers.

Implications for International Game Publishers and Esports Athletes

With the “Games of the Future” scheduled for 2024, featuring popular games like CS:GO and DOTA 2, the proposed changes have significant implications for international game publishers and Russian esports athletes. The potential for restricted access to international competitions and the broader use of games without explicit permission from rights holders are among the contentious issues being debated. The proposed amendments could potentially impact Russian esports athletes’ access to international competitions and create ambiguity in the legislation regarding the definition of video games, leading to broader use of various objects without the permission of rights holders.

Legal experts in the field of sports law, such as Vsevolod Rozhkov of Game-in-Law, have highlighted the traditional ways tournament organizers interact with intellectual property holders: through open license conditions or direct agreements. Rozhkov points out that violating open license conditions can lead to prohibitions on game use and legal disputes, adding a layer of complexity to the proposed legislative changes.

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The Future of Russian Esports Amidst Global Tensions

The necessity for this legislative mechanism is partly attributed to the current geopolitical climate, particularly the sanctions and strained relations between Russia and certain other jurisdictions. This has led to difficulties in organizing esports competitions using video games from intellectual property holders in these unfriendly jurisdictions, who often ignore or refuse licensing requests from Russian organizations.

Industry Reactions and Ongoing Negotiations

The “Games of the Future” organizers are currently in negotiations with key publishers, navigating the complex landscape shaped by these proposed legislative changes. The esports community, both in Russia and globally, is closely watching these developments, which could set a new precedent in the relationship between esports tournament organizers and game publishers.

Via: kommersant.ru

Image: L-BBE, CC BY 3.0 https://creativecommons.org/licenses/by/3.0, via Wikimedia Commons

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  • Leonid Shmatenko

    Founder of Esports Legal News, Leonid Shmatenko, stands at the forefront of legal innovation in the esports domain, crafting pathways through its unique regulatory and technological landscapes. With a rich tapestry of experience in esports and blockchain, Leonid provides astute legal guidance to esports associations, clubs, and entities, ensuring they navigate through regulatory, data protection, and technology law with finesse and foresight. Leonidโ€™s expertise is not merely recognized within the confines of his practice but is also celebrated in the legal community. Who’s Who Legal extols him as “an innovative thinker and an expert in CIS and esports disputes,” further describing him as an “outstanding arbitration practitioner with diverse experience and a broad network.” These accolades underscore his adept ability to navigate complex disputes and regulatory challenges, particularly in the vibrant and fast-evolving esports industry. At Esports Legal News, Leonid is not merely a founder but a pioneering force, ensuring that the esports industry is navigated with strategic legal insight, safeguarding its interests, and propelling it into a future where legal frameworks are not just adhered to but are also instrumental in shaping its evolution and growth. View all posts

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