Legal Issues In Esports Roger R. Quiles, Esq. S League Issues S Ownership of Intellectual Property Rights S Game developers and publishers own the underlying intellectual property, not teams or players S Broadcasting/Distribution Rights S LCS - $300 million streaming deal with MLB’s BAMTech S OWL - two-year, $90 million deal with Twitch S ESL’s Pro League – Facebook; ESL One, IEM, Dreamhack - Twitter S Player discipline S Violations of the League’s Player Code of Conduct can result in fines, suspensions, etc. League Issues: Venue Team-Side Issues S Establishing a business entity S Investment S Franchising/Slot/Asset Purchases S Sponsorships S Exclusivity Rights S Employee vs. Independent Contractor Employee vs. Independent Contractor S Employees usually work for one employer on hours set by the employer S Typically receive employment benefits like health benefits, sick leave, vacation, etc. S Independent Contractors work for a set project or length of time, can set their own hours, and have the authority to decide how to go about accomplishing tasks. S Usually receive no employment benefits S Recently, the California Supreme Court made it harder for employers to classify their workers as independent contractors. S (1) free from the control and direction of the employer; S (2) performs work that is outside the hirer's core business; S (3) and customarily engages in "an independently established trade, occupation or business." Professionalization of Players S Player contracts S Sponsorships S Licensing S Exclusivity S Branding S Intellectual Property issues S Immigration S Difficulties for associations/unions in Players’ esports Associations S Association v. Union S Collectivization attempts: S CSPPA S Potential OWL association What is PASPA? S Professional and Amateur Sports Provision Act of 1992 S Made it unlawful for a state to sponsor, operate, advertise, promote, license or authorize sports betting S Four states were grandfathered in and were allowed to operate full-scale sports betting (Nevada) or limited sports lotteries (Delaware, Montana, Oregon) Murphy v. National Collegiate Athletic Association S Ruled PASPA was unconstitutional, citing the “anticommandeering principle” of the 10th Amendment S Individual states now have the power to legalize and regulate sports betting just as they already do with many forms of non-sports gambling. Esports: Post-PASPA Landscape S Many states have already taken action to legalize sports betting in their state S Five states offer full scale sports betting now S Three states have recently passed bills allowing it S Fourteen states have introduced a bill allowing it but have not passed the bills S New revenue stream for businesses/sponsorships S Problems that may arise in esports S Age issues S Integrity S Match-fixing S Doping Thank you! Questions? Roger Quiles [email protected] (917) 477-7942.