Video Game Law
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Video Game Law 2019 Edition LawPracticeCLE Unlimited All Courses. All Formats. All Year. ABOUT US LawPracticeCLE is a national continuing legal education company designed to provide education on current, trending issues in the legal world to judges, attorneys, paralegals, and other interested business professionals. New to the playing eld, LawPracticeCLE is a major contender with its oerings of Live Webinars, On-Demand Videos, and In-per- son Seminars. LawPracticeCLE believes in quality education, exceptional customer service, long-lasting relationships, and networking beyond the classroom. We cater to the needs of three divisions within the legal realm: pre-law and law students, paralegals and other support sta, and attorneys. WHY WORK WITH US? At LawPracticeCLE, we partner with experienced attorneys and legal professionals from all over the country to bring hot topics and current content that are relevant in legal practice. 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CHECK US OUT ON SOCIAL MEDIA Facebook: www.facebook.com/LawPracticeCLE lnstagram: www.instagram.com/lawpracticecle Linkedln: www.linkedin.com/company/lawpracticecle Twitter: www.twitter.com/LawPracticeCLE Zachary Strebeck Video game and board game lawyer representing small and medium-sized game companies throughout the industry. • runs the Game Lawyer Blog • hosts the Legal Moves podcast • spoken at a number of games industry conventions and events • taught multiple video game law CLE programs Contact: [email protected] 01 - the games industry 02 - video game law? AGENDA 03 - company formation 04 - intellectual property 05 - game contracts 06 - privacy law 07 - terms of use/EULAs AGENDA 08 - gambling law 09 - esports “In 2018 the industry was worth just shy of $135 billion. The $134.9 billion market value marks a 10.9% increase over 2017.” - Newzoo, market analyst firm, as shared with GamesIndustry.biz 60% of Americans play video games every day number of video game players 150 million in the US worldwide video game players 2.2 billion 1/3 of total global population average player age 34 (72% are over 18 years old) Video Game Law? • Corporations/business law • Securities law • M&A • Intellectual property and Licensing • Contract law • Employment law • Regulatory law • Privacy law • Tax law page 010 Marketing to Game Clients • Content Marketing • Blogging/Guest Blogging • In-person at Game Conventions • Panels and Q&As • Reddit, other forums • Social Media Marketing page 011 Learning about the industry • gamasutra.com • gamesindustry.biz • kickstarterlessons.com • reddit.com/r/gamedev page 012 Your clients • What kind of clients do you work with in video games? • What are your client’s goals? • What are they looking for in a lawyer? page 013 Forming a game studio • Different business entities • What kind of entity to form? • Where to form the entity? • Limiting liability page 015 Forming a game studio • Dividing ownership in a game studio • Even split? • “Dead Equity” issues • Dynamic Equity splits • The importance of Vesting ownership page 016 Forming a game studio • Before you draft – make sure everyone’s on the same page • Shared and Secret questionnaires • What is the company’s business model? • How will it be financed? • What are each member’s responsibilities? • How will ownership be divided? • What’s the exit strategy? Is there one? page 017 Forming a game studio – Red Flags • Do the founders trust each other? • Do they have a solid business plan? • Is there good communication between founders? • Do they all understand the target market and the costs involved in developing the game? • Do they have different answers to the questionnaire questions? • Are each founders’ expectations realistic? page 018 Forming a game studio – Financing • What do they need money for? • Types of financing • Crowdfunding • Publishers • Securities Issues page 019 Intellectual Property • What is Intellectual Property? • Types of IP and what they protect: • Patents • Trademarks • Copyright • Trade Secrets page 021 Intellectual Property - Patents • Protect ideas, inventions, processes, etc. • Must be 1) useful, 2) non-obvious, and 3) novel • Not really common with game startups, unless they do hardware or some novel software • Usually, there really isn’t any novel technology in video games that’s worthy of patent protection • Alice Decision page 022 Intellectual Property – Patent Costs • Extremely Simple Patent - $7,000 to $8,250 • “Software Related” - $16,000 and up • Plus drawings, filing fees, etc. • Provisional Patent – much cheaper, gives you 12 months to file your Non-Provisional Patent • Confidentiality agreements and invention assignments page 023 Intellectual Property - Trademarks • Two-fold protections – consumers and trademark owners • Protects words, slogans, and logos • Word or Design marks, as well as certification marks, service marks, trade dress • Why is it so important? page 024 Intellectual Property - Trademarks • Benefits of trademark registration • USPTO and state registrations • International registrations page 025 Intellectual Property - Trademarks • Trademark distinctiveness scale: • Fanciful • Arbitrary • Suggestive • Descriptive • Generic • Is your client’s trademark registrable? • Counseling clients on choosing a trademark page 026 Intellectual Property - Trademarks • What can you register? • Game name • Company name • Game logo • Company logo • Slogans associated with the game or company page 027 Intellectual Property - Trademarks • Trademark Clearance Search • USPTO • EU • WIPO Brand Database • Google • Steam • App Stores • Itch.io, Game Jolt • Board Game Geek page 028 Intellectual Property - Trademarks • USPTO registration tips: • Video games are in Class 9 • Role Playing Game books in Class 16 • Board games/toys are in Class 28 • Online services (online games) in Class 41 • Video game development services in Class 42 page 029 Intellectual Property - Trademarks • USPTO registration tips: • How to describe your client’s goods/services • Logo/design mark descriptions • Intent to use applications page 030 Intellectual Property - Copyright • What does copyright