The Legal Facet of Indian Esports: A Reality Check

Among the stories of prosperity and growth potentials of esports in India, there are some grappling legal issues that are quite prevalent. Dr. Mitsu Chavda, an actively practising esports lawyer shares her take on the esports legal puzzle.

Esports is a rapidly growing industry. While we, as a country, may be just beginning to understand the industry, we cannot ignore the fact that even at this nascent stage the industry is facing internal and external legal issues.

The newness of the industry, the lack of a central regulatory body along with the law to govern it, the lack of awareness among the players and other stakeholders, the lack of acceptance and the taboo surrounding esports; the reasons for the arising legal issues are just too many to even list down.

To understand what issues are currently prevalent in the esports industry in India, we connected with Dr. Mitsu Chavda, an esports lawyer, a legal advisor and a social activist. She shared her take on the legal puzzle of esports, the loopholes and the day-to-day legal issues she comes across as an active practitioner in the field.

Tell us about the different legal aspects of esports in India?

Esports is a catching-up field. We

By Amarylisa Gonsalves

have seen the advent of video games since the times of Sega, Atari and 16-bit, 32-bit games but with the advent of better internet facilities, 5x growth is visible since 2005. It is at a considerable level at this point in time. Laws such as cybersecurity law, contract law, criminal laws, IPR, and copyright apply to e-sports just as they apply to other areas of the society. We should pay close attention to any changes in laws and emerging trends to ensure we are never offside.

What do you do as an Esports lawyer?

- Drafting, review, and management of e-sports contracts; - Advice and consultation on sponsorship; - Right of publicity (intellectual property) - Governance, integrity, and supervision; - Rules, regulations and management of competition/ competition organisation; - Drafting related to esports constitution of the association; - Dispute resolution Dr. Mitsu Chavda, Esports Lawyer and Legal Advisor

When we talk about esports, tournaments play a vital role. What are the different legalities of esports tournaments?

Tournaments are engaging spaces of various stakeholders and hence it is a bit of a multi-

stake affair. On the organizers’ side, there are organizers and game companies along with their various sponsors. On the players’ side, there are team relationships and internal relationships duly regulated by their vantage. Additionally, in-game they are regulated by contractual obligations as entered into and duly applied. There are contracts between players and their vested interest parties, which are regulated by the Indian Contract Act. These relationships are about sponsorships, endorsed benefits and share to benefits as accrued.

Another important factor is esports organisations and player contracts. Does India have any specific laws for the protection of players against adverse contracts? If yes, tell us a little more about it.

If you consider specific laws to esports, there is no code specifically regulating esports but the various laws from the various domains regulate commerce and relationships come into play in esports. It’s at a nascent stage. Every player, group, alliance, and competition needs to have a lawyer with incredible comprehension/knowledge of the contract and agreement law. It will help them in drafting, arranging, marking, settling, and understanding the agreements. Players on their part must try not to sign agreements without lawful direction i.e legal guidance, no matter how lucrative the offer is. Players should look for legal assistance to secure themselves and guarantee that they do not transfer ownership of their privileges for little advantage. Escaping such lawful responsibilities can be extremely hard or inconceivable.

What laws or legalities do esports organisations need to follow to make a player contract?

Three phases regulate the relationship when it comes to player contracts - when a player is not playing but is on rolls of a company, during a tournament and general endorsement. One has to understand that tournaments are time-limited and so are the rewards, exposure and benefits. The endorsement a player undertakes and what he/she portrays becomes a decision of the company that manages the players off the game. Also, contractual obligations if entered into apply when a player plays on his own. The ambit of ongoing tournaments is limited by contracts or organisation which organizes and the player caretaker organisation. The third part is generally applicable to stand-alone payers or those who opt for their specific rights under one or two esports contracts. These are not different from regular contracts but have specific regulations and mentions under ID, login rights and web presence as applicable from case to case basis. Contract negotiation for groups/ teams/organisations is essential. They guarantee the groups get the best arrangements that address each person of the group, individually and collectively. Single individuals are in more need of such contracts and arrangements since they are often helpless, organisations may generally exploit such players/gamers. This is where the players require the contracts and agreement law considerably more. Hence, lawyers with esports knowledge are the need of the hour.

Similarly, what laws come into place while forming an esports organisation?

One has to clarify what kind of esports organisation one is making - a company, a society, a trust or any other legal/ non-legal body as well as the areas of functioning. The only difference between esports organisations and traditional sports organisations is the virtual presence, the functions are the same.

What are the most common legal issues regarding esports in India currently?

The most common legal issues regarding esports in India are contracts, salary disbursement and player poaching, to name a few. Apart from these, rights of creators of games, stakeholders, organisers and players; interorganizer rights; player sponsors and player organizer rights are also some common legal issues in Indian esports.