Esports: A Legal Guide for Competitive Gamers and Content Creators
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We all like to play video games, however, playing games with your legal needs is ill-advised (just ask the players over at Cloud9). Esports and content creation for games is a billion-dollar industry. This means that more and more companies are going to take notice of the industry, and they all want a piece of the pie. This is a good thing for the industry, and it can be a great thing for esports players and content creators in the gaming space.
However, the entrance of new players (the companies, not actual players) in the space creates more complications. The Esports industry has been compared to the Wild West because it is so new, and for the most part, the industry standards do not exist yet. Players are signing bad contracts and sponsorship deals because there is a lack of player education. We are seeing the same thing happen to gamers that happened to others in different creative spaces long ago, but we have a chance to make the industry safer and more profitable for everyone involved by demanding and implementing ethical business practices. At Hendley & Goodwyn we want to remove the veil covering legal services and support players and content creators in the space.
Here are some things that you, the gamer or content creator, need to know:
1. You are allowed to push back on terms of a contract.
There is this common misconception that you are going to lose out on a deal that you have been offered if you push back on terms within the contract. This is simply not true. For example, let’s say that a popular energy drink wants to sponsor your stream on Twitch, Mixer, or Facebook Gaming. They are likely going to send you a contract to sign laying out the things you are required to do as part of the sponsorship agreement. They are generally going to structure these agreements to maximize their exposure and benefits through the partnership, even if that means you, the player, are not getting the best deal. The key here is to remember that they approached you. They know that what you are offering can bring value to their brand. This means that they do not hold all the power even if it feels like they do because they are a massive company and you are just you. If there is something in the agreement that you do not want to agree to, let them know. They will do their best to accommodate your needs, but only if you ask! This brings us to my second point.
2. Do not let your excitement lure you into a bad deal.
To illustrate this point, I am going to tell you a story about my friend and his moped. In college, my roommate became enthralled with mopeds. He would spend hours on Craigslist looking for a good deal on a moped. He found a listing that looked like a good deal, and as he was going out to meet the person selling the moped, I gave him some unsolicited advice. I said, “Hey, I know you are excited about getting a moped, but don’t let your excitement trick you into buying the first moped you see.” He promised me he wouldn’t and that he was smarter than that. Two hours later I see my friend zooming towards our apartment on an old, beat-up moped with an ear to ear grin on his face. Here are a few notable facts about my friends moped:
He did not obtain the title to the moped.
It started up almost every time you turned the ignition.
The moped had a key to start it, but if you had a penny, that would do the trick too.
What was the fate of my friends moped? He traded it for a PlayStation 3 after it sat broken in the parking lot for several months. The moral of the story here is that doing things because you are excited about it does not mean that it is the best decision for you to make. This applies to gamers and content creators as well. You are going to get offers from teams and sponsors with promises to grow your brand, and it may turn out to be the best thing for your career, but not every time. Do not allow the excitement of the opportunity take advantage of your decision-making process. Be strategic. Be wise. Be calm. Long term success is more important than short term excitement.
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3. Protect your intellectual property rights.
Trademark and copyright are extremely important for esports players and content creators. Look at it from a consumer’s perspective. When they are looking through the list of players and content creators that are currently streaming, they are much more likely to click on the person that has TSM, NRG, or something familiar to them in their name. You are building a brand and you want people to become loyal to your brand, but building that brand can easily be undermined by someone appropriating your intellectual property. Ensure that you are registering your trademark and copyright as early as possible to maximize your protection.
Beyond protecting your IP rights, it is important to be aware of the IP rights of others. If you are streaming music that you have not licensed or is not royalty-free, Twitch can take down your stream and hand out temporary or permanent bans depending on how many times you infringe. There are playlists on Spotify that include a catalog of music that streamers can include in their stream without fear of infringing on someone else’s IP rights. Here is one such playlist from Spinnin Records that you can find on Spotify.
4. Avoid oral contracts and good-faith handshake deals.
Unfortunately, a lot of the deals that are made early on in a player’s career are done on a handshake basis. This is bad for several reasons:
It is difficult to understand exactly what you are agreeing to.
“Good-faith” becomes less “good” when the money starts to come in.
It is a litigation nightmare if you ever must go to trial.
How long are you bound to this agreement?
The terms of an oral contract are not clearly defined.
How is compensation going to work?
The list could go on and on. When you put something in writing, it does not mean that you do not trust that person. It is adding a layer of protection to you and the other party. Nine times out of ten you are not going to need your seatbelt, but that time you do need it, you really need it because it can be the difference between life and death. Similarly, a solid contract can be the difference between your career flourishing or dwindling. If there is any amount of money being exchanged, get it in writing!
5. Attorneys are your friends, and we are not scary!
This one seems self-serving, but I promise it is not (alright, maybe a little). Navigating the terms of a contract can be confusing and time-consuming, and looking over a contract is not how you want to spend your day after pulling a 14-hour stream. This is what attorneys are here for! We know the law, and we are ready to read your contract and explain it to you in simple terms. We will be able to tell you if the deal you are being offered is standard or not. We also have a duty to make sure that we are looking after your best interests, and it is a duty that we take seriously (because our law license depends on it!). Please, if you have a contract waiting for your signature, contact an attorney. It will be worth it!
Let’s wrap it up.
Esports and videogame content creation is your career and it deserves every bit of legal attention and care that any traditional career gets. An attorney can help you leverage your opportunities, advise your decision making, and further your vision in the safest way possible. Contact us today with any questions you have regarding your career. Also, feel free to add me on PS4 or PC (lil-_-esquire) if you need to fill your squad on Apex Legends.
If you have any questions feel free to DM me on Reddit at /u/fullheadofha1r.
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*The material and information in this blog is for general informational purposes only. In no way is this information to be construed as legal advice for a particular situation.*