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Yearly Wrap Up & 5 Trending Esports Legal Topics For 2024

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A digital collage representing five trending esports legal topics for 2024. 1) A video game controller with a legal gavel superimposed on it, symbolizing player and team name disputes. 2) A pile of gold coins and a contract, depicting franchise fee payment disputes. 3) A salary cap with esports logos, representing additional player salary caps. 4) A passport and a visa stamp with an esports theme, illustrating immigration hurdles for foreign players. 5) A document titled 'Community Tournament Guidelines', with a licensing stamp, signifying licensing changes.

Yearly Wrap Up

As 2022 continued into 2023 and the “esports winter” in the United States arrived, there was a myriad of shifts in the business and legal landscape including esports organization FaZe Clan famously going public at a nine-figure valuation, receiving a Nasdaq delisting warning; and eventually being purchased at a fraction of its initial listing price by the owners of the esports organization Complexity, GameSquare. This purchase was in addition to other esports organizations and event operators being acquired including NRG Esports buying Counter Logic Gaming, Shopify purchasing a League of Legends spot from TeamSoloMid (TSM), and the Savvy Gaming Group acquiring Electronic Sports League (ESL), Dreamhack, FACE-IT, and Vindex including Esports Engine. There was also a highly publicized franchise fee payment arbitration dispute, disclosed and undisclosed salary “caps” as well as an esports players’ association initiated “walkout.” Finally, Microsoft received approval for its purchase of Activision-Blizzard which is set to shift the entire esports space in ways yet to be seen. Accordingly, while there are many legal topics that are currently trending, here are five ones to monitor as the esports global industry continues to grow and evolve in 2024.

I. Continued player (gamer-tag) and esports team name disputes

Riot Squad Esports sued by Riot Games, Valorant team Squirtle Squad changing its team name, and streamer and content creator Digitalprincxss agreed upon rebrand from “Pokeprincxss” are just some of the recent examples of improper brand building and legal due diligence causing individuals to have to alter their entire established gamer-tag and associated personal “brand” as well as companies being involved in a trademark infringement lawsuits and other costly name disputes.

II. Franchise fee payment disputes

After a highly publicized compelled arbitration and eventual settlement, the Overwatch League eliminated all the outstanding fees owed by the participating franchise teams as well as agreed to absolve the esports organizations of any future franchise league payments. While the exact specifics and reasoning for the settlement are undisclosed, the Overwatch League did not seem to live up to expectations after nearly two dozen teams spent several million dollars in franchise fee buy-ins paid to the league operator Activision-Blizzard as well as expended additional substantial sums on player and personnel salaries, training, and other related team operational costs. While the Overwatch League seems to have disbanded, it will be interesting to see if any other esports franchise leagues that previously required and collected a buy-in payment will be subject to a similar fate with compelled alternative dispute resolution (ADR) by disgruntled franchisees. If so, this additional quarrel will be an interesting situation to monitor to see if it is resolved in a similar fashion or if litigation is necessary to effectuate a resolution.

III. Additional player salary “caps”

This past year, Activision-Blizzard settled a Department of Justice (DOJ) lawsuit for unlawfully implementing an undisclosed salary “cap” described as a “competitive balance tax” in its two franchise leagues. This undisclosed tax “penali[zed] teams that spent more on player salaries than an amount decided by Activision Blizzard.” Accordingly, the DOJ sued Activision-Blizzard for “suppress[ing] the wages of esports players” in both the Overwatch and Call of Duty leagues “in violation of the Sherman Act.” Conversely, league operator Riot Games instituted agreed upon player salary “caps” in both the LCKand LECfranchiseleagues for League of Legends esports, including capping an organization’s total player salaries to “70 percent” of the team’s annual revenue. Additionally, the franchise league also imposed a “‘luxury tax’” payable by any team that spends “over the maximum” amount. After the North American League of Legends Championship Series Players’ Association’s (NALCSPA) successful stance, it will be interesting to see if a salary “cap” and “luxury tax” implementation is on the horizon for the North American league. If so, this action may be ripe for dispute and discussion by the NALCPA and other interested parties including potentially the DOJ as a potential restraint of trade or other anti-trust violation. While each country has its own labor and employment laws, implementing a concerted effort to impair esports professional players’ wages could be a similar DOJ violation as the one that Activision-Blizzard encountered (U.S. v. Activision Blizzard, Inc., No. 1:23-cv-00895 (D.D.C. Apr. 3, 2023)).

IV. Continued immigration hurdles for foreign esports players and teams

In the United States, there has been a series of highly publicized esports players and teams missing competitions, league matches, and other events as the result of failing to timely obtain proper work authorization in the form of a “visa” to enter the country. As noted, a visa is required for any foreign citizen wishing to come to the United States to earn some form of income, including receiving a salary from a U.S.-based esports team or earning prize money from a U.S.-based esports tournament organizer. This year has been no different, as the currently existing visa classifications and corresponding application criteria act as continued hurdles to the seamless issuance of visas for professional esports players, coaches, casters, and other personnel. While some independent organizations, such as the Esports Trade Association (ESTA) created services to assist in fulfilling some of the visa requirements, the currently existing legislation and statutory framework does not seem to adequately address and account for the unique needs specific to the competitive video game industry. As a result, similar to Germany, it might be appropriate for the federal legislature to create and carve-out a unique visa category classification for esports and competitive gaming in an effort to streamline the application process for the government officials handling the cases as well as for the individuals and businesses applying for work authorization. If not, there is sure to be a continued trend of players, coaches, and other individuals missing lucrative competitive opportunities as well as more large-scale esports events occurring outside the United States due to these hurdles.

V. Continued “community” tournament guidelines licensing changes

Since a game publisher or developer owns the exclusive copyright in the game, the company determines all usages of a title, including any commercial ones. However, many game entities have created “community” events or tournament guidelines that permit the hosting of certain commercial events without obtaining a license and paying a licensing fee to the game publisher or developer. While each company issued its own criteria, some companies have recently enacted stricter guidelines than others companies, including Nintendo and Capcom. Accordingly, these stringent procedures might potentially negatively impact some existing event operators whose current events might not fit into the revised and potentially arbitrarily determined criteria causing them to cease operations due to the lack of potential profitability. As a result, the unfettered discretion by the game developers and publishers in implementing the prize pools limitations, imposing branding and event marketing guidelines, and other articulated restrictions could potentially be challenged. As a result, similar to other entertainment industries such as music, it could be argued that there might be a need for a third-party royalty board or other similar tribunal to weigh in and potentially establish a uniform statutory rate or compulsory license system as it relates to third-party event operations. While this might not necessarily be a legal battle on the horizon or one that may ever exist, there are many business ventures that are impacted by game publisher and developers’ community tournament guidelines as these rules can be changed at a company’s leisure. For instance, these alterations impact the establishments that these events occur at, the players competing in them, the casters commentating for them, as well as the companies involved in the production, marketing, and other aspects of the events.

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VI. Conclusion

As evident by the above and by the many other potential legal matters that may spring up in the coming year, it is clear that there will be many new issues and disputes for esport legal practitioners to engage with and learn from. It will be interesting to see if existing players’ associations continue to grow in power and influence as Rocket League launched its own association which added to the growing list of independently created player advocacy associations. Accordingly, the sustained growth of these organizations will be especially important and applicable to the esports legal field in light of the potential restructuring of franchise leagues as well as due to the agreed upon player compensation limitations enacted in esports leagues outside the United States. In addition to potential anti-trust issues related to a game publisher or developers’ ownership and unfettered discretion as it relates to third parties utilizing their protected works, there are immigration and intellectual property law matters that require ample attention and focus in order to ensure that all the individuals and companies in the esports industry are operating in the most efficient and economical fashion to grow the entire field. Overall, it will be interesting to see if there are additional mergers and acquisitions with many existing gaming companies exploring their potential long-term viability along with what the best course of action is going forward.

Disclaimer: This article is not intended as legal advice, as an attorney specializing in the field should be consulted.

Image: DallE

Author

  • Justin M. Jacobson ELN

    Justin M. Jacobson, Esq. is an entertainment and esports attorney located in New York City. For the last decade, he has worked with professional athletes, musicians, producers, DJs, record labels, fashion designers, as well as professional gamers, streamers, coaches, on-air talent, and esports organizations. He assists these creative individuals with their contract, copyright, trademark, immigration, tax, and related business, marketing, and legal issues. He is a frequent contributor to many industry publications and has been featured on a variety of entertainment, music, and esports publications and podcasts, including Business Insider, The Esports Observer, Esports Insider, Tunecore, and Sport Techie. Justin has positioned himself as a top esports business professional working with talent in a variety of franchise leagues including the Overwatch League, Overwatch Contenders, and Call of Duty Pro League as well as in many popular competitive titles such as Fortnite, CS:GO, Gears of War, Halo, Super Smash Brothers, Rainbow 6, PUBG, Madden, and FIFA and mobile games such as Brawlhalla, Clash of Clans, and Call of Duty mobile. Previously, he worked with various esports talent agencies as well as in an official capacity on behalf of several esports teams and brands. He currently is an Adjunct Professor of Esports at University of North Carolina Wilmington, a member of the industry board for the International Journal of Esports and has authored “The Essential Guide to the Business & Law of Esports & Professional Video Gaming.” View all posts

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Tencent’s Light of Motiram – Innovation or Imitation?

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The line between inspiration and imitation in the gaming industry has again sparked debate, this time involving Tencent’s title, Light of Motiram, and Sony’s Horizon Zero Dawn. The controversy highlights the ongoing tension in intellectual property (IP) law within gaming, echoing past cases like Palworld vs. Pokémon. Here, we explore these issues, their legal implications, and what they mean for the future of game development.


The Allegations Against Light of Motiram

Tencent’s Light of Motiram, bears striking visual and thematic similarities to Sony’s Horizon series. Both games feature post-apocalyptic settings where players navigate lush environments populated by mechanical animals. Critics have pointed out uncanny resemblances, from the aesthetic of mechanised creatures to thematic overlaps like “nature meets machine”​. For a side by side comparison, see here .

While Light of Motiram distinguishes itself by introducing survival mechanics, such as team-based gameplay and base-building, it doesn’t escape comparisons. This raises the question: at what point does inspiration become actionable under IP law?

Fans have drawn parallels between this situation and the ongoing legal battle between Nintendo and Pocketpair over Palworld, suggesting Sony might consider legal action for intellectual property infringement. While Light of Motiram incorporates some original features, the resemblance in core design has led many to accuse Tencent of unoriginality and blatant copying. Neither Sony nor Tencent has officially commented on these accusations or hinted at legal steps so far.


A Familiar Pattern: Palworld vs. Pokémon

Tencent’s predicament mirrors the legal battle between Nintendo and the creators of Palworld. The latter faced allegations of patent infringement (among other IP infringements). Their game, which shares visual and mechanical similarities with Pokémon, has been called “Pokémon with guns” due to its concept of capturing and using creatures in combat and other tasks.

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Nintendo and The Pokémon Company filed a lawsuit in September 2024 in Japan, claiming that Palworld infringes on patents related to mechanics like capturing creatures using a throwable object, visual indicators for capture success rates, and riding creatures in an open world. These patents stem from a broader set filed in 2021, before Palworld’s official release

There’s growing speculation about potential legal issues between Sony and Tencent. Given Sony’s history of protecting its intellectual property and the attention this controversy is garnering, a legal dispute similar to the Nintendo-Pocketpair case could emerge, especially if Light of Motiram proves successful upon release. For now, the gaming community is watching closely to see if Sony takes action or if Tencent modifies the game to address the criticisms.


Concluding Remarks

Legal disputes like these, underscore the challenges of fostering creativity while protecting original work. Developers tread a fine line when drawing inspiration from popular titles. While derivative works can expand genre boundaries, they risk infringing on protected IP, leading to costly litigation.

Whether or not Sony files a lawsuit (most probably will do so), the discourse surrounding this case will likely influence stakeholders’ understanding of the balance between innovation and IP protection—a critical issue as the esports and gaming industries continue to grow.

Tencent’s Light of Motiram – Innovation or Imitation?

Light of Motiram – Steam

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  • Tencent’s Light of Motiram – Innovation or Imitation?

    Despoina, a pivotal member of Esports Legal News, seamlessly blends her fervour for Intellectual Property and Internet law with a specialised focus on the vibrant Video Game industry. In her current role as the Programme Element Leader for Pre-Masters and Lecturer at Brunel University London Pathway College, she navigates the realms of academia and legal practice, with a particular emphasis on the digital domain. Despoina’s commitment to advancing the legal understanding of the video game industry is evident in her Ph.D thesis, titled “The Interpretation of Copyright Protection in Video Game Streaming in Europe” which delved into the intricate relationship between copyright protection and the emerging phenomenon of video game streaming in the European context. Her dedication to this field ensures that she remains at the forefront of legal developments. With a Master of Laws (LLM) degree in International Commercial Law from Brunel University London, Despoina has solidified her expertise in the legal facets of the global business environment, providing a sturdy foundation to navigate the legal challenges within the esports and video game industry. At Esports Legal News, Despoina not only brings her academic rigor and legal expertise but also plays a crucial role in the coordination of a major ELN project, which, while still confidential, promises to be a significant contribution to the esports industry. She ensures that the intersection of Intellectual Property, Internet law, and the video game industry is navigated with precision, depth, and foresight, contributing to the ethical and legal progression of the esports industry. View all posts

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Book Review: The Routledge Handbook of Esports

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The Routledge Handbook of Esports edited by Seth Jenny, Nicolas Besombes, Tom Brock, Amanda Cote and Tobias Scholz, offers a comprehensive and interdisciplinary exploration of one of the fastest-growing sectors in contemporary sports and entertainment. This handbook is an essential resource for students, researchers, and industry professionals alike.

The structure of the book is both logical and engaging, divided into ten key themes that address the multifaceted nature of esports. Each of the 62 chapters, authored by 93 leading academics and industry specialists, presents rigorous research, practical examples, and case studies that illuminate the current landscape of esports. The themes range from foundational definitions and historical context to critical discussions on players, business management, and the future directions of esports.

Book Review: The Routledge Handbook of Esports

Chapter-by-Chapter Analysis of the The Routledge Handbook of Esports

Section 1: Introduction to Esports

The opening chapters provide a solid grounding in the subject, notably Chapter 1.2, which tackles the complex task of defining esports. Nothelfer, Jenny, and Besombes navigate the nuances of this definition with finesse, distinguishing between recreational gaming and competitive esports. Their proposed definition serves as a cornerstone for the entire handbook, establishing a clear framework for subsequent discussions.

In exploring the history of global esports, Jin and Besombes highlight significant technological milestones and cultural shifts that have propelled esports from niche competitions to a global spectacle. Their chronological account, pinpointing key transitions since the late 1950s, contextualizes the evolution of esports within broader societal changes.

Further enriching this exploration is Chapter 1.4, which meticulously outlines the diverse stakeholders within the esports ecosystem. Carrillo Vera and Antón’s depiction of the interdependencies among players, publishers, broadcasters, and fans emphasizes the complexity of this burgeoning industry. This holistic view is crucial for understanding how various entities collaborate and compete in the esports landscape.

Chapters focusing on esports genres and the role of game developers provide valuable insights into the mechanics of the industry. Hamer and Besombes categorize game genres with precision, while Ashton delves into the evolving responsibilities of game publishers, notably their transition to the “Game as a Service” model. These discussions reflect the dynamic nature of esports and its continual adaptation to technological advancements.

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Section 2: Esports Research

The second section of the handbook shifts focus to esports research methodology, a particularly notable feature as it addresses the nascent state of academic inquiry in this field. Baker, Sharpe, and Jenny’s overview of current research topics emphasizes the multidisciplinary nature of esports studies and suggests a robust framework for organizing future research efforts. While Jenny, Harris, Scholz and Besombes discuss the organisations, Labs/Centres and Journals related to Esports research, Campbell, Jenny, Cregan and Smithies provide general recommendations for Esports research. The call for more rigorous methodologies, including randomized controlled trials and qualitative approaches, is both timely and necessary as the field matures, as Cote, Foxman and Law highlight in 2.5.

Each chapter contributes to a greater understanding of the methodologies employed in esports research, providing practical recommendations and critical insights. For instance, Macey and Hamari’s examination of survey methodologies, along with DiFrancisco-Donoghue and Varga’s focus on experimental designs, equips researchers with essential tools to explore this vibrant field.

Section 3 – Esports Players

This section of the handbook highlights the vital role of players in the esports ecosystem, examining various facets crucial for their development, support, and sustainability. Featuring insights from both industry experts and academics, it presents evidence-based strategies aimed at enhancing player performance while prioritizing overall wellness. Chapter 3.2 by Hong and Wünsch offers an in-depth look at the daily routines and pressures faced by esports players, providing a comprehensive overview of their professional lives and the expectations from various stakeholders.

Jenny explores the essential skills required for elite esports performance, emphasizing the importance of physical coordination, mental acuity, and teamwork in competitive environments. Chapter 3.4 by Varga, Scholz, and Tan delves into the use of data to assess and improve player performance, highlighting both the strengths and limitations of analytics in capturing the nuances of communication and team dynamics. Watson, Jenny, and Johnson discuss the multifaceted roles of esports coaches, offering practical advice on coaching philosophies and educational pathways to enhance coaching effectiveness. Chapter 3.6 by Swettenham, Abbot, and Leis emphasizes the significance of mental fortitude in esports, presenting strategies for improving team communication and guidance on seeking psychological support. Migliore provides practical recommendations for physical activity, sleep, nutrition, and mental health, addressing common issues like stress and gaming addiction.

Chapter 3.8 by McGee, Ho, and Jenny highlights common injuries in esports and advocate for ergonomic practices to enhance player safety and performance. Meissner shares valuable insights on how to support children through various stages of their esports journey, from early involvement to professional aspirations. Chapter 3.10 by Fisackerly outlines the journey from casual to professional play, noting the impact of collegiate esports systems and the challenges players face in their careers.

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Section 4 – Esports Business and Management

Section 4 of the handbook dives into the commercial landscape of esports, examining the business and management practices that underpin this rapidly growing industry. While esports have attracted entrepreneurs and investors, it has also faced challenges, leading to calls for more sustainable business models. This section seeks to bridge traditional business principles with the unique dynamics of esports, offering readers valuable insights into various aspects of the field.

Chapter 4.2 by Parshakov and Barajas explores the financial frameworks and business models that drive the esports industry. It highlights diverse revenue streams and cost structures, alongside the evolution of prize money, showcasing the financial maturation of esports and investment opportunities within publicly traded companies.

Gentile introduces the discipline of esports management, emphasizing the need for effective managerial and leadership practices in this burgeoning landscape. The chapter reviews organizational structures within esports teams and leagues, providing a solid foundation for aspiring managers.

Chapter 4.4 by Helmefalk, Berndt, McCauley, Borg, and Erlandsson serves as a practical guide to orchestrating offline esports events. It covers key processes and stakeholder expectations, equipping readers with insights to successfully plan and execute tournaments.

Kauweloa explores the evolving architecture of esports venues, categorizing them into three types. The chapter addresses the design and technical considerations that influence venue management, urging future research to rethink conventional definitions of esports arenas. Chapter 4.6 by Becka, Antón, Vera, and Ruera examines the intersection of esports and tourism, identifying how esports events can enhance city branding and attract tourists. It highlights nine global “esports tourist capitals” and the potential for integrating esports within the hospitality sector.

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McCauley and Baker dissect the marketing strategies shaping the esports landscape. They analyse consumer behaviours and innovative branding techniques, offering a comprehensive overview of team and player branding as well as digital marketing practices. Chapter 4.8 by Pizzo and Hedlund delves into the critical role of sponsorships in esports, examining the relationship between endemic and non-endemic brands. It emphasizes the importance of authentic engagement to resonate with esports audiences and provides recommendations for maximizing sponsorship effectiveness.

Mitchell, Möglich, and Ritacco explore the evolving field of public relations within esports, discussing challenges and best practices. They highlight effective communication and crisis management strategies that are essential for navigating the complex PR landscape. Chapter 4.10 by Büßecker, Lenke, Ruhland, Vitale, and Scholz investigates unique HR management practices in esports, from talent acquisition to organizational culture. It emphasizes the need for tailored HR approaches to foster engagement and adapt to the industry’s distinctive demands.

Section 5 – Esports Media and Communication

Section 5 of the handbook delves into the pivotal realm of media and communication within esports, illustrating how digital athleticism is conveyed to audiences worldwide. This segment combines insights from seasoned practitioners and scholars, providing a thorough exploration of esports journalism, production, streaming, spectatorship, and fandom.

Chapter 5.2 by Wolf and Cote traces the evolution of esports journalism, detailing its transition from niche forums to mainstream coverage. The authors examine the challenges faced by traditional media, such as ESPN and Yahoo, in grasping the esports narrative, while also highlighting the rise of content creators as an alternative source of news and insights.

Knutson and Liebig discuss the intricate processes behind esports broadcasts, focusing on the livestreaming ecosystem. They outline the various roles involved in production and draw comparisons with traditional sports broadcasting, emphasizing the unique elements of digital content creation, audience engagement, and the technologies that drive profitability.

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Smethers provides a deep dive into streaming platforms like Twitch and YouTube, along with traditional TV networks. Smethers explores monetization strategies, rights management, and the engagement dynamics unique to each platform, shedding light on the financial structures that support esports broadcasting.

Välisalo, Brock, and Law examine the evolution of esports audiences, from casual gatherings to structured events. They analyse demographics, motivations, and engagement practices, emphasizing the importance of real-time interaction and data insights in enhancing the viewer experience for both in-person and online audiences.

Jarrett explores the profound influence of fandom on the esports ecosystem, highlighting the symbiotic relationship between the industry and its fans. He discusses the origins of esports genres from fan adaptations and introduces theoretical frameworks from cultural studies to analyse fan identities, creativity, and the dynamic interactions that define esports fandom.

Section 6 – Esports Education

Section 6 of the handbook explores the integration of esports into educational settings, addressing both instructional and competitive dimensions. As a relatively new phenomenon, this section presents cutting-edge insights into how esports can motivate learning, improve student retention, develop digital literacy skills, and enhance essential life skills such as communication and teamwork.

Chapter 6.2 by Jenny, Gawrysiak, O’Hagan, and Besombes provides a global perspective on esports education at both secondary and higher education levels. The authors clarify a common misconception that esports education solely focuses on gaming skills, emphasizing instead the importance of acquiring knowledge relevant to various esports and gaming industry careers, such as management and media. They present a detailed inventory of academic programs, noting that most focus on preparing students for business-related roles in esports. The authors outline essential characteristics of effective programs, including qualified faculty and industry connections, while acknowledging existing scepticism about esports education’s sustainability.

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Foxman, Jenny, Cote, King, and Becka discuss the environment and challenges faced by collegiate esports teams, highlighting both student-driven clubs and institution-supported varsity programs. Key issues include diversity, equity, and inclusion, as well as the lack of standardization across programs. The authors provide practical advice for establishing a collegiate esports program, along with insights from interviews that capture different regional perspectives.

Harvey offers a practical guide for developing competitive esports programs in primary and secondary education. The chapter emphasizes how esports can foster digital literacy and provide a low-risk environment for students to engage with technology while having fun. As students advance, competitions become more structured, and considerations such as staffing, resources, and game selection become crucial. Harvey advocates for a balanced approach that combines education, sport, and gaming, empowering students through their participation in esports.

Section 7 – Critical Concerns in Esports

Section 7 of the handbook tackles the complex challenges and pressing issues within the esports ecosystem, shedding light on eight key areas that demand further research and attention from both participants and organizations. This section provides a comprehensive overview of the critical concerns that shape the future of esports, including governance, ethics, inclusion, and environmental sustainability.

Chapter 7.2 by Abanazir and Shinohara addresses the rapid growth of esports outpacing its regulatory frameworks. The authors highlight the intricate relationship between game developers and third-party organizers, noting the lack of established governing bodies and the resulting fluid legal environment. They suggest that supranational entities like the EU could play a pivotal role in establishing coherent guidelines for esports governance.

Jenny, Schelfhout, and Besombes explore the potential inclusion of esports in the Olympic Games, outlining the challenges and opportunities involved. The authors stress the fragmented nature of the esports landscape, which lacks a legitimate international governing body, a significant hurdle for integration into the Olympic framework. However, they remain hopeful about the possibility of esports participating in the 2028 Games in Los Angeles.

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Brock and Johnson investigate the role of gambling in esports, particularly focusing on contentious practices like loot boxes and skin betting. These forms of gambling raise ethical concerns and have led to public scandals and regulatory scrutiny. They emphasize that new technologies complicate the gambling ecosystem, introducing both opportunities and challenges.

Partin discusses the ethical dilemmas surrounding cheating in esports, arguing that it undermines the integrity of competition. The chapter examines the socio-technical factors that contribute to cheating, suggesting that players’ social and economic circumstances can influence their decisions.

Chapter 7.6 by Frommel and Mandryk delves into the pervasive issue of toxicity within esports communities. The authors highlight the ambiguity of the term and the challenges it presents in creating effective enforcement mechanisms. They discuss efforts by organizations to categorize toxic behaviours and explore the role of AI moderation in promoting safer online environments.

Friman, Ruotsalainen, and Ståhl tackle the cultural barriers that alienate women and minorities in esports, challenging the stereotype of the “esports athlete” as predominantly white and male. They advocate for initiatives that promote diversity and equity, highlighting organizations working to support underrepresented players.

Chapter 7.8 by Hassan, Baltzar, and Kämäräinen examines the barriers faced by gamers with disabilities and the need for accommodations. The authors argue for a more nuanced understanding of disability that considers intersecting factors such as socio-economic status and race, and they draw parallels to the Paralympics as a potential model for inclusivity.

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Hiltscher and Möglich situate esports within broader environmental challenges, advocating for corporate social responsibility (CSR) to drive sustainability in the industry. They encourage esports organizations to invest in renewable energy and align with the United Nations’ Sustainable Development Goals (SDGs) to reduce their carbon footprint.

Section 8 – Global Esports Cultures

Section 8 of the Routledge Handbook of Esports offers a fascinating exploration of the diverse esports ecosystems around the world. While esports is often viewed through the lens of its origins in East Asia and North America, this section emphasizes the unique cultural, social, and economic factors shaping esports in various global regions. Each chapter provides critical insights into how esports is developing and operating differently across the globe, highlighting both commonalities and distinct differences.

Chapter 8.2 by El Borno and Mokhtar traces the evolution of esports in the MENA region, from grassroots tournaments in cyber cafes to its current professional landscape. The authors discuss significant challenges faced, such as infrastructure and investment, while also showcasing success stories like the Intel Arabian Cup, illustrating the region’s potential for growth.

Focusing on East Asia as the heart of the esports industry, Jin and Kim expand the conversation to Southeast and South Asia. The authors emphasize regional nuances, fan culture, and emerging esports markets, offering a holistic view of Asia’s complex esports landscape beyond just the established powers like China and South Korea.

Koskimaa examines the dual trajectory of European esports: its integration into broader digital entertainment and the sportification of competitive gaming. The chapter highlights regional variations, popular titles, and the impact of local fandoms, providing a comprehensive picture of Europe’s diverse esports culture.

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Micallef and Formosa discuss the mixed history of esports in Oceania, particularly in Australia and New Zealand, noting both advancements and setbacks, such as the cancellation of the Oceanic Pro League. The authors identify unique challenges, like geographic barriers and market size, while emphasizing the growth of university esports programs as a bright spot.

Chapter 8.6 by Scholl and Stout offers a critical analysis of the North American esports scene, detailing the influential role of organizations like Major League Gaming. It explores the intricate relationships among game publishers, streaming platforms, and traditional sports leagues, highlighting the interconnectedness of esports cultures in the U.S. and Canada.

Focusing on Brazil, Argentina, Peru, and Chile, Macedo, Kurtz, and Becka discuss the growth and diversity of esports in South America. They address challenges such as governance and gender equity while identifying trends that could shape the future of esports in the region.

Overall, this section effectively captures the rich tapestry of global esports cultures, emphasizing that while esports is a worldwide phenomenon, its expression is deeply influenced by local contexts. The inclusion of tables summarizing key leagues, publishers, and games further enhances the readers’ understanding of each region’s esports landscape.

Section 9 – Esports Future Directions

Section 9 delves into the uncertain future of esports, acknowledging the inherent unpredictability of the industry. Jenny, Brock, Scholz, Cote and Besombes provide a thought-provoking analysis of potential trends and sustainability challenges facing esports, encouraging readers to engage in discussions about its direction.

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The chapter begins by reflecting on recent developments, such as the dissolution of the Overwatch League and changes in collegiate esports structures. These events exemplify the volatility within the esports ecosystem and the difficulty of making long-term predictions. By examining past predictions, the authors provide a foundation for understanding how external factors, such as the COVID-19 pandemic, can drastically alter the trajectory of esports. The authors emphasize the need for sustainable practices across economic, social, and environmental dimensions. They argue that without addressing these sustainability challenges, the future of esports remains precarious, echoing concerns about overreliance on sponsorship and the need for diversified revenue streams. Predictions regarding future technological advancements in esports venues, streaming, and training highlight the importance of adapting to evolving consumer preferences and market demands.

Section 10 – Key Terms Definitions

Section 10 offers essential definitions of key terms relevant to the esports field, providing a valuable resource for both newcomers and seasoned professionals. This section enhances the handbook’s accessibility and understanding, ensuring that readers are equipped with a solid foundation of terminology as they engage with the broader discussions presented in the previous sections.

Conclusion

The Routledge Handbook of Esports provides a comprehensive examination of the esports industry, from its diverse global cultures to the challenges and uncertainties it faces. The insights and analyses presented are essential for understanding the current state and future possibilities of esports, making it a vital resource for anyone interested in this rapidly evolving field.

While the handbook touches on esports governance and law in Chapter 7.2, a more comprehensive examination of esports law could be beneficial. For example, adeeper dive into how intellectual property laws affect game developers, players, and tournament organisers, contractual agreements, labour law considerations, legal implications of streaming and content creation, and dispute resolution mechanisms would provide a more thorough analysis of the legal challenges and frameworks within the esports industry.

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Author

  • Book Review: The Routledge Handbook of Esports

    Despoina, a pivotal member of Esports Legal News, seamlessly blends her fervour for Intellectual Property and Internet law with a specialised focus on the vibrant Video Game industry. In her current role as the Programme Element Leader for Pre-Masters and Lecturer at Brunel University London Pathway College, she navigates the realms of academia and legal practice, with a particular emphasis on the digital domain. Despoina’s commitment to advancing the legal understanding of the video game industry is evident in her Ph.D thesis, titled “The Interpretation of Copyright Protection in Video Game Streaming in Europe” which delved into the intricate relationship between copyright protection and the emerging phenomenon of video game streaming in the European context. Her dedication to this field ensures that she remains at the forefront of legal developments. With a Master of Laws (LLM) degree in International Commercial Law from Brunel University London, Despoina has solidified her expertise in the legal facets of the global business environment, providing a sturdy foundation to navigate the legal challenges within the esports and video game industry. At Esports Legal News, Despoina not only brings her academic rigor and legal expertise but also plays a crucial role in the coordination of a major ELN project, which, while still confidential, promises to be a significant contribution to the esports industry. She ensures that the intersection of Intellectual Property, Internet law, and the video game industry is navigated with precision, depth, and foresight, contributing to the ethical and legal progression of the esports industry. View all posts

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CMS Advises on Inaugural Esports World Cup in Riyadh

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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,

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“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

Author

  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

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