Esport law
Proper setting of the conditions of cooperation between the team and the player is important for both parties. There are 2 basic ways to design a contractual relationship – employment or self-employment.
For any esports organisation to operate successfully, a positive relationship with
partners and sponsors is crucial. Therefore, it
is important to pay attention to a few basic
aspects, such as setting contractual obligations or contractual penalties.
Although the esport environment is very
specific, in our experience, esport investing
follows similar rules as venture capital investments in startups or classic M&A
transactions. As a rule, it will therefore need
to be determined whether the transaction will
be a debt financing (convertible loan) or an
equity investment.
Choosing the right form for the game organization is important in terms of future
intentions of the founders. In the Czech Republic we most often encounter gaming
organizations in the form of registered associations or limited liability companies.
Or stat or ability upgrades with various forbidden assistants, aimbots, radars or other cheats. In the world of professional esport, however, their use presents a potential
disaster for the entire club.
Like mainstream sports, esports are plagued by problems with players who use illegal substances. Not only cheating, but doping can also significantly affect the promising career
of a player or an entire club.
Every avid football or hockey fan will occasionally bet on his or her favorite.
However, it should be remembered that betting is an activity regulated by the
Gambling Act and therefore certain aspects need to be watched out for.
Building a true lovebrand should be the goal of every esports organization or gaming
startup. Protect your brand with a trademark.
Our firm has long focused on law of the digital age and the new trends it brings. This undoubtedly
includes esport, whose meteoric growth and rapid inclusion in the mainstream never ceases to
amaze and entertain us. Given that esport is a highly specific and ever-evolving industry, a number of
unique legal issues arise within it. To help navigate these legal issues, we have decided to compile an
overview of the top eight legal challenges we perceive as the most important in esports, based on
our experience and discussions with our clients and friends active in esports, while summarizing the
most anticipated trends and predictions for 2021. We believe that our publication "Esport law" will
be useful for esports organizations and other members of the Czech esport ecosystem and will
contribute to the further development of the industry.
