A. What are a few legal issues that arise in esports law?
Gambling issues
Gambling in esports take on a unique framework. While there are avenues
that allow monetary betting, there are many platforms that allow game
cosmetics and items to be used to bet. Some platforms allow these
cosmetics and items to be converted into cash. While there are many legal
issues that can be discussed in this area, one very worrying problem is that
of regulation in terms of age. In betting for sports, there is usually a need
to verify the age of the bettor before he or she is allowed to bet. However,
in esports, because the game can be played by those under the age of 18,
there is also the possibility for them to use their cosmetics and items to
bet. To me, this is one serious issue which publishers must put their foot
down and tackle.
Investment
Investment in esports can take many forms, for example forming a
professional team or organisation, merchandising, organising tournaments
or even sponsorships. Due to esports being largely in the digital realm,
there is definitely a need for contracts to specifically spell out each parties’
obligations. Another legal issue in terms of sponsorship is the difficulty in
proving that the obligations have been met. For example, Company A
enters a sponsorship agreement with Company B, promising USD
$500,000 and in return Company B must play Company A’s advertisement
for 10 seconds every interval with a minimum viewership of 100,000.
Firstly, it is difficult for Company B to guarantee that they will be able to
achieve such a number of viewership. Secondly, it is difficult to ascertain
the number of viewers at the precise moment in which the advertisement
is aired. Thirdly, there is a possibility of inflated numbers, i.e. the usage of
bots or shell accounts to boost the number of viewers.
IP protection
The question of IP can only be answered by first establishing whose IP
right we are referring to. In esports, there are many stakeholders, each
with their own rights. Game publishers have the IP right over the game
itself. Tournament organisers also have IP rights to their broadcast,
designs, names, etc. Organisations and teams have IP rights to their
merchandise, brand, design, logo, etc. One thing to consider is the
enforcement of these rights. Say Team ABC’s logo is registered for IP
protection in Brazil. Can a team in Malaysia use that logo? How does IP
laws extend across international waters? These are issues that
practitioners in esports law would have to deal with when it comes to IP.