Practical Aspects of Rights Management and Licensing Agreements in eSports Game Development

Practical Rights Management in eSports Games

With the rapid growth of the eSports market, many game development companies are considering new entries into the field.
In game development, it is essential to organize various rights-related matters, with the handling of intellectual property rights being particularly important.

Relationship with Other Intellectual Property Rights

When using personalitys from other companies, it is necessary to obtain permission for Japanese copyright and trademark rights. Additionally, when using the design of real products such as automobiles, it is recommended to secure protection through contracts due to the relationship with Japanese design rights and other related rights. Furthermore, when featuring real athletes or celebrities in a game, a license agreement concerning Japanese publicity rights is essential.

When utilizing such third-party intellectual property rights, it is crucial to thoroughly verify the scope of rights and any restrictions. Special attention should be paid to Japanese trademark rights, particularly regarding product classification and regional limitations. Moreover, concerning Japanese publicity rights, it is common to require detailed arrangements regarding the manner of using likenesses and the method of payment for compensation.

Basic Framework of Copyright Management

Considering these rights relationships, managing the copyright of the game content itself is also crucial.
Games are complex works that combine multiple copyrighted materials, such as programs, illustrations, text, and music.
For works created by employees as part of their duties, the copyright belongs to the company as a corporate work under Article 15 of the Japanese Copyright Act. However, when commissioning external creators, it is essential to establish clear agreements regarding the ownership and use of copyrights.

Consideration for Performers’ Rights

Additionally, performers of music and voice actors are granted neighboring rights under Japanese law. It is crucial to establish comprehensive licensing agreements that take into account events and media developments. For instance, it is necessary to define the scope of permissions for using music at large-scale events or utilizing voice actors’ performances in player commentary.

When contracting with performers, it is essential to clearly stipulate terms regarding the secondary use of recorded audio and performances. This is particularly important in the context of eSports tournaments, where audio may be used in various scenarios such as live game commentary or highlight videos. Therefore, obtaining appropriate permissions for these uses is necessary.

Types and Importance of License Agreements

In such situations, there are two specific types of contract forms to consider: a copyright transfer agreement from the creator to the production company, and a license agreement.
Particularly when opting for a license agreement, it is essential to specify in detail the usage conditions, such as use in eSports tournaments, online distribution, and international expansion.

Operation and Management of License Agreements

Finally, it is crucial to establish an internal system to properly manage these rights relationships.
In particular, when multiple licensors are involved, it is necessary to ensure the consistency of each contract’s content.
Additionally, if considering overseas expansion, attention must be paid to the differences in the legal systems of each country.
Since the protection periods for copyrights and neighboring rights, as well as the scope of rights limitations, may vary by country, it is essential to design contracts based on the legal systems of the countries or regions where expansion is planned.