Video Games & Esports

Video gaming – long among the web’s avant-garde of technologies, lifestyles, and ideas – is a lab of the future. We enable our clients to exploit it to the fullest.

In the rapidly evolving business of interactive entertainment, it is not enough to know the law.

Clients want lawyers who share their passion for gaming and have a deep knowledge of industry economics and the latest trends. At Reed Smith, our lawyers have worked extensively with leading game developers, publishers, platforms, esports leagues, and streaming services. We provide legal services globally on a wide range of areas, including the following.

Video games

Advertising and marketing law. We advise clients on issues relating to in-game ads, advergames, endorsements and influencer marketing, loot box disclosures, age-gating, prize promotions, and ASA/FTC/CPRA AdTech rules, including “dark patterns” risk management.

AI in games. Reed Smith’s AI team regularly advises video games clients on training data licensing, synthetic voice and likeness issues, generation of NPC content, deepfake risks, AI content watermarking, and evolving regulatory regimes.

Child safety. We advise clients on compliance with age rating and other laws mandating video games be rated according to their content. Our professionals advise game publishers on compliance with the Children’s Online Privacy Protection Act and other laws that restrict the collection of information from children and/or limit their screen time or game access.

Copyright and IP 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. We secure all necessary licenses and protect our clients’ work. Our team comprises some of the best copyright lawyers in the market, experienced in U.S., UK, EU, and Chinese copyright laws.

Development of games. Leveraging our international presence, we help our clients address potential legal issues right from the start, including identifying required clearances, advising on location-specific regulations, or navigating rules limiting in-game appearances of famous architecture and national monuments.

Data privacy. We advise clients on the full lifecycle of data management and protection, from a game’s conception 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 on compliance with all the major data protection regimes worldwide.

Distribution and sale. We know the world of digital distribution inside and out, so we can negotiate the best deals for our clients. For clients seeking a direct relationship with their customers, our team of technology and consumer law attorneys enables them to roll out robust and compliant consumer-facing distribution platforms.

End-user terms and consumer disclosures. We draft terms of service, EULAs, community guidelines and codes of conduct, acceptable use policies, and disclosures for subscriptions, auto-renewals, and refunds.

Gambling, sweepstakes, and contest rules. We provide strategic and regulatory advice on “loot boxes,” entry fees for tournaments, sweepstakes, and play-to-earn business models.

Insurance coverage. Our insurance lawyers advise on issues relating to cyber/E&O coverage for live services, event cancellation insurance for tournaments, and product liability coverage for games.

Litigation and dispute resolution. Our U.S. patent team is highly skilled at defending our gaming clients from cases alleging patent, trademark, and copyright infringement, payment defaults, and contract breaches. We also handle cases, including class actions, stemming from consumer complaints. Our mediation and arbitration lawyers are focused on resolving games-related conflicts quickly and cost-effectively. We also negotiate accounting and audit terms.

Merchandise and trademark licensing. We provide advice on the sale of physical and digital in-game merchandise. Our experience includes all aspects of transactions for officially licensed merchandise, including the scope and duration of rights granted, territorial limits, royalty payments, procedures for addressing infringement and counterfeiting, and quality control measures. Our lawyers have years of protecting the characters, settings, plots, and other elements of the original creators and rights holders of valuable work.  

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 acquisitions of games; and post-merger integration and regulatory compliance.

Music and video games. Reed Smith has extensive experience advising video games clients in all matters of music, from engaging composers and artists, advising on the administration and distribution of owned music, negotiating sync licenses and structuring music deals through to platform-wide licensing projects with collective management organizations and major rights holders.

Private equity. Our client teams seamlessly integrate private equity lawyers with our finance, tax, regulatory, and entertainment and media industry lawyers through our global network of offices, including those in the U.S. and UK.

Publishing and licensing. We understand that publishing agreements can be an important means of creating a successful relationship between the studio and the publisher. From establishing clear milestones and unwavering deadlines, to detailing the particulars of fees and royalties, we ensure that our clients’ contractual position is airtight. We also advise on the risks and opportunities of incorporating characters, costumes, and other features from one game into another.

Tax credits for game production. Our team advises developers, publishers, financiers, and investors on video game tax credit regimes. Our work includes helping to structure qualifying spend and navigating jurisdiction-specific certification processes. We also work with clients to defend awards in audits and integrate incentives into domestic and cross-border production and financing strategies.

Virtual currencies and payment processing. We advise on matters relating to in-game currencies and wallets, cash-out mechanics, stored value, money transmitter licensing, AML/KYC, sanctions screening, and PCI-DSS compliance for payment processing.

Esports

Design and strategy. We provide comprehensive 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 comprehensive process when structuring these leagues, we have drafted team participation agreements, charters, rules, player agreements, and player streaming policies.

Media rights. Our lawyers have represented game publishers in transactions that effectively monetized esports content through its distribution on video streaming platforms such as Twitch and YouTube. For esports clients, we have also negotiated transactions for television broadcasts.

Outsourced operations and sponsored events. Many game publishers outsource the operation of tournaments and other 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. Our lawyers have drafted standard player agreements for use in international leagues and advised game publishers on “deemed employer” issues.

Regulatory and antitrust compliance. Our antitrust lawyers can advise on all aspects of esports league formation and operation.

Talent agencies. We counsel clients on player representation and agent licensing matters arising under California law and elsewhere.

“The firm works at the cutting edge of interactive entertainment and developments in social media.”

Chambers UK

“Reed Smith LLP has a notable roster of major players in the video game sector and is sought after for its expertise in matters involving games regulation, creative content licensing, streaming, esports, crypto and NFTs.”

The Legal 500 UK

“The media and entertainment group at Reed Smith assists notable gaming studios, esports companies and technology corporations. The practice stands out in the market for its international focus, often working alongside teams from its global network on cross-border gaming matters.”

The Legal 500 UK

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