US Legal Overview of the Games
Industry
Chris Reid
Founding Partner, Chris Reid Law
ASIPI Webinar - June 20, 2017
About
Chris Reid
Founding Partner
[email protected]
@NYGameLawyer
+1 917.903.3912
[email protected]
@NYGameLawyer
Topics Covered
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5.
Overview of Games Industry Structure
User Generated Content (UGC)
Streaming Rights
Advertising Regulations (influencers)
Privacy
[email protected]
@NYGameLawyer
Who is Involved?
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Game Developers
Contractors
Game Publishers
Middleware (Unreal Engine etc)
Distribution Platforms (Steam, Apple, MS, Sony)
Streamers
Players
State Agencies (Federal and State)
[email protected]
@NYGameLawyer
Game Industry Contract Examples
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NDAs
Work For Hire Agreements
Development Agreements
Publishing Agreements
EULAs
Terms of Service
Contest Rules
IP Licensing
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IP Assignment
Company Governing Documents (Shareholders
Agreement/Operating Agreement/Stock Purchases)
Investment deal documents
Incubator terms
Streamer/Influencer agreements
Settlement Agreements (to end a dispute)
Endorsement Deals
[email protected]
@NYGameLawyer
Intellectual Property: Why?
Game components covered by IP:
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Code (copyright/sometimes patent/trade secrets)
Art (copyright)
Animations (copyright)
Music (copyright)
Characters (copyright)
UI design (copyright)
Story (copyright)
Names (trademark)
Logos (trademark/copyright)
Customer lists/IAP pricing strategies (trade secrets)
“Universes” e.g. Star Wars (copyright)
[email protected]
@NYGameLawyer
Intellectual Property: Types
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Copyright (content)
Trademarks (name/logo)
Patents (novel software/methods)
Trade Secrets (info kept secret for business
advantage)
Right of Publicity (name/likeness of real
individuals)
[email protected]
@NYGameLawyer
IP for Games in the US: Copyright
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No “moral rights” (only for very narrow set of visual
arts – can be waived)
Default: Author is owner
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Exception: “Work for Hire” (employee in scope of
employment OR contractor w/written agreement and work
falls in certain categories (applies to games)
Employees/Contractors assign all rights to Developer
 Developer licenses complete game to Publisher for
distribution
[email protected]
@NYGameLawyer
IP for Games in the US: Trademark
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Game titles CAN be registered (book or movie names
cannot)
Common Law rights
USPTO Registration
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Stronger
Broader (entire US)
Can be “incontestable” after 5 yrs
Can Register before use in commerce
[email protected]
@NYGameLawyer
Intellectual Property: Takeaways
Super Oversimplified IP Summary
Patents
TM
Trade Secrets
Copyright
Length
20 Yr
Immortal
Immortal
95/120 Yr
Cost
High
Medium
Medium
Low
Tough
Medium
Medium
Easy
Use in Games
Rare
Often
Medium
Often
Registration?
Yes
Should
No
Should
Medium
Narrow
Large
Large
Ease of obtaining
Coverage
*All information tailored to game development
[email protected]
@NYGameLawyer
User Generated Content (UGC)
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Addressed in the EULA
Who owns it?
Developer rights to re-use?
Reps&Warranties about infringement?
[email protected]
@NYGameLawyer
Streaming/Machinima
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Also handled in the EULA
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Generaly, the Developer asserts total ownership of
everything
Practically: Developers rarely block “let’s play”
videos or streaming unless there is a serious
issue (because it is good marketing)
But they maintain the RIGHT to stop it
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Some will have acceptable use policies
[email protected]
@NYGameLawyer
Advertising Regulation/”Influencers”
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Popular streamers (eg. “PewDiePie”) are huge marketing
tools
The FTC requires disclosure if streamers are paid to
endorse
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“Clear and conspicuous” notice that the content is sponsored
either spoken in video, or as text; AND
Notice “above the fold” in video description; AND
Clear disclosure in social media links (eg. #ad or #sponsored)
FTC generally fines the sponsor NOT the influencer
[email protected]
@NYGameLawyer
Privacy: Privacy Policies
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What types of data are collected
Why they are collected and how they are used
When and with whom they are shared
How users can access their data and correct it
What steps are taken to protect data
[email protected]
@NYGameLawyer
Privacy: Children Under 13 and
COPPA
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Applies if you COLLECT Personally Identifiable Information (PII)
FROM Children under 13
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Requires: Verifiable Parental Consent
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PII examples: name, address, email, geolocation, pictures, user account
names, any info that can be combined to identify someone
This could be from a 3rd party ad network; and you are responsible for knowing
what they collect if you use their service!
Costly and time consuming
Compliance
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Safe Harbors
Age Gating
Fines are very very expensive
[email protected]
@NYGameLawyer
Questions?
Chris Reid
The Law Offices of Christopher G. Reid
[email protected]
@NYGameLawyer
+1 (917) 903-3912
[email protected]
@NYGameLawyer