Current Legal Issues and Future Prospects in eSports

Legal Challenges Facing the Japanese eSports Industry

In Japan, once known as a gaming powerhouse, the development of eSports faces several legal challenges.
The cautious approach towards hosting large-scale eSports tournaments is influenced by multiple legal issues.
While hosting tournaments with substantial prize money could potentially enhance the recognition of eSports and increase both spectators and participants, various legal constraints currently make this difficult to achieve.

One of the primary legal challenges surrounding eSports tournaments is related to Japanese copyright law.
Unlike traditional sports, which are held in stadiums or baseball fields, eSports tournaments project the gameplay onto screens or displays similar to those in cinemas.
Spectators watch the game screens as if they were watching a movie, necessitating careful consideration of copyright issues.
Additionally, when filming or broadcasting the competition, appropriate measures must be taken regarding the portrait rights of players and spectators.
Addressing these rights management issues is a crucial aspect of tournament operations.

Legal considerations regarding prize money systems also present significant challenges.
If tournaments offering substantial prize money to winners, similar to tennis or golf, could be held, it is believed that attention to eSports would increase, and its recognition as a competitive sport would advance.
However, the provision of prize money by tournament organizers may be considered a prize under the Japanese Act against Unjustifiable Premiums and Misleading Representations, and if applicable, it would be subject to the law’s upper limit regulations.
Particularly when game companies offer prize money for competitions featuring their own titles, there is a possibility that the prize money could be viewed as a premium for purchasers of the software, necessitating careful consideration.

Furthermore, the relationship between collecting participation fees from participants and the payment of prize money is a significant topic of discussion in relation to gambling offenses under the Japanese Penal Code.
If prize money is paid to winners using participation fees as the source, there is a possibility that these fees could be considered as having the nature of a bet.
Therefore, a clear understanding of what constitutes a gambling offense is required.
Detailed legal examination is particularly necessary regarding the nature of the competition, the source of the prize money, and the nature of the participation fees.

Future Prospects for the Development of eSports

In recent years, eSports has garnered significant global attention due to its economic impact and potential as an industry. It has transcended the realm of personal entertainment and is establishing itself as an event that captivates many people, similar to traditional sports tournaments, drawing large audiences. In Japan, there is also an expectation for an increase in the number of participants and viewers.

In this context, to move beyond the traditional negative image of gaming and develop eSports as a competition that inspires people, akin to baseball or soccer matches, it is essential to consider the legal challenges specific to eSports and engage in constructive efforts to address them. This requires examining how to operate within the existing Japanese legal framework and, if necessary, implementing new legal measures. A comprehensive examination from various perspectives is needed.