Video games

• Artificial intelligence and games. Games with dead-eyed, scripted non-player characters (NPCs) will soon be a thing of the past. Life-like characters with realistic features (story, responsiveness, emotions) powered by AI will become the norm. New AI-generated environments will mean that games can be customized to the preference of individual gamers. We advise clients on the use of software to analyze player behavior and preferences and to tailor the gaming experience. We also provide advice on the use of AI tools to aid the game design process, create new gameplay mechanics, balance game elements or detect and deter cheating.
• Child safety. We advise clients on compliance with age rating and other laws that mandate that video games be rated according to their content. Our data privacy professionals advise game publishers on compliance with the Children’s Online Privacy Protection Act and other laws that restrict the collection of personal information from children or that limit screen time or game access for children.
• Content crossovers. The incorporation of characters, costumes, maps, vehicles and other unique or distinguishing features from one game into another, or from movies or manga into games, is becoming increasingly popular. We advise on the risks and opportunities when the content from different franchises is combined.
• Copyright. Understanding copyright is critical to games. Our team comprises some of the best copyright lawyers in the market with experience dealing with EU, U.S., UK, French, Spanish, German and Chinese copyright rules, among others. Our copyright lawyers include law academics who regularly author thought leadership pieces about copyright issues and who teach international and European copyright law at the university level. We are known by clients, regulators and academics in the copyright sector as a law firm of reference for sophisticated copyright issues, policy work and innovative and strategic thinking in the field of copyright.
• Data privacy. Every game publisher collects, stores and uses personal data, either directly or indirectly. Publishers are frequently subject to conflicting laws, regulations and standards in different jurisdictions. We advise clients on the full life cycle of data management and protection – from the conception of a game or service through its launch and operation. We provide advice on the handling, disclosure, transfer and deletion of the information that a game or service collects, including guidance regarding compliance with EU and UK General Data Protection Regulations, China Cybersecurity Law, Singapore’s Personal Data Protection (Amendment) Act, California Consumer Privacy Act, California Privacy Rights Act, Illinois Biometric Information Privacy Act and other emerging state and national laws.
• Development. Navigating the legal issues that arise during the early stages of game development can be tricky; strategies for overcoming regulatory hurdles must be formulated at the outset. Leveraging our international presence, we help our clients address potential legal issues from the early concept stage – whether that involves identifying necessary clearances; advising on territory-specific regulations on national issues, such as the depiction of blood or religious symbols; or navigating esoteric rules applicable to the in-game treatment of famous architecture and national monuments.
• Distribution and sale. We know the world of digital distribution inside out, including App Store, Play Store, Steam, GOG Galaxy and “humble bundle”-style digital distribution solutions. Knowing these distribution platforms ensures we get the best deal for our clients. For clients seeking a direct relationship with their customers, we field our team of technology and consumer law experts to ensure they are able to roll out robust and compliant consumer-facing distribution platforms.
• Financing. We have acted on a number of deals for the financing of video games for various platforms (including traditional consoles, mobile and virtual reality). For example, we act for a well-known UK bank that lends to video games developers against the UK tax credit for video games production.
• Gambling, sweepstakes and contest rules. Reed Smith provides strategic and regulatory advice to video game publishers and other stakeholders regarding the legal restrictions on loot boxes, entry fees for tournaments, sweepstakes and play-to-earn business models.
• Intellectual property protection. We advise on trademark and copyright protection for games, characters, leagues, logos and soundtracks and help devise strategies for monitoring infringement and enforcing IP rights. Our copyright practitioners provide advice on fair use and derivative works in game development and marketing.
• Live entertainment in the game. In-game collaborations and events like virtual concerts will continue to allow artists to reach larger audiences on gaming platforms. We work with platform providers on music licensing and talent services.
• Litigation and dispute resolution. We represent clients in the gaming industry in disputes over IP rights, contract breaches, accounting and audit terms and payment defaults. We handle cases for game publishers related to patent, trademark and copyright infringement and consumer complaints, including class actions. Our lawyers who are skilled in mediation and arbitration seek to resolve conflicts quickly and efficiently.
• Mergers and acquisitions. We advise clients on the acquisition of game publishers and individual game titles. In this area, our services include due diligence and risk assessment; negotiating terms and structuring deals for mergers or the acquisition of games; and post-merger integration and regulatory compliance.
• Merchandise and trademark licensing. We provide advice on the sale of physical merchandise and the sale of digital, in-game merchandise, like avatars, character skins and player icons. Our experience includes all aspects of a transaction for officially licensed merchandise, including the scope of rights granted, duration, territorial limits, royalty payments, procedures to address infringement and counterfeiting and quality control measures.
• Movies to games and games to movies. When adapting movie characters and content into a video game, or video game characters and content into a movie, intellectual property issues play a critical role. Our lawyers have years of experience in protecting the characters, settings, plots and other elements of the original creators or rights holders, and also protecting the innovations and efforts of the creators of a new work.
• Music licensing. We have a long history of counseling clients in every aspect of the traditional music business. Our professionals have guided the successful careers of Grammy-winning, multi-platinum artists, iconic record producers, legendary songwriters and highly successful promoters, executives, and entrepreneurs in the business. We are uniquely qualified to represent both creative talent and companies in the digital era. Some of the most sophisticated rights issues in games arise when music is used. We help our games clients navigate the complexities that come with music use. This includes using preexisting music, commissioning new music and hosting in-game performances. We regularly advise clients on collecting society music licenses for platforms, including games stores.
• Patent litigation. Our U.S. patent team is highly skilled at games-related patent litigation with a proven track record for some of the most influential games companies in the market.
• Private equity. Our client teams integrate private equity practitioners seamlessly with our finance, tax, regulatory and entertainment and media industry lawyers through our global network of offices, including in the United States and the United Kingdom.
• Publishing and licensing. We understand that publishing agreements can be an important component in creating a successful relationship between the studio and the publisher. From clear milestones and delivery, to fees and royalties, to addressing the complex web of background and foreground IP, we ensure that our clients’ contractual position is watertight.

Esports

• Design and strategy. We provide blueprints that can be used to build a new esports league from the ground up, as well as advice on league economics and how to structure the league to minimize the risk of loss for the game publisher.
• Franchised leagues. Our lawyers have helped to create the legal structures for global, franchise-based esports leagues. As part of our work process when structuring these leagues, we have drafted team participation agreements, charters, rules, player agreements and player streaming policies.
• Outsourced operations and sponsored events. Many game publishers outsource the operation of tournaments and esports events to third-party event production companies. Our experience in dealing with these third-party tournament organizers includes drafting “major event licenses” for large events and community licenses for player-organized tournaments.
• Player agreements and employment law advice. The formation of an international esports league can create many employment issues for players, coaches and staff. Our lawyers have drafted form player agreements for use in international leagues and have provided advice to game publishers on “deemed employer” issues.
• Regulatory and antitrust compliance. The launch of a new esports league can create antitrust risks for a game publishers, especially if the league makes use of a player draft, salary caps, transfer fees or a competitive balance tax. Our antitrust lawyers can provide advice on all aspects of esports league formation and operation.
• Sale and licensing of media rights. Our lawyers have represented game publishers in transactions that seek to monetize esports video content from its distribution on streaming services such as Twitch and YouTube. We have also worked on television broadcast transactions for esports clients.