Challenges of Ownership in Esports Contracts

TLDR

• They may be presented with standard contracts covering exclusivity, revenue shares, intellectual property and use of their image.
• An esports organisation should have properly constituted ownership, founder agreements and contracts with key personnel.
• An investor may walk away from a company if a former founder could claim ownership of its principal product or if contractors were never required to transfer intellectual property.
• A dispute involving game licences, tournament rights, cheating allegations, player contracts or digital content may be difficult to explain to a decision-maker unfamiliar with the industry.
• Esports companies often spend more time choosing logos than reviewing contracts.