ESports, i.e. the competitive practice of video games, was recognised by French Law 2016-1321 of 7 October 2016 for a Digital Republic. The popularity of eSports has been growing steadily over the past fifteen years or so, and video game publishers play a leading role in this context.
The state of the law on video game competitions :
- In France, video game competitions were authorised by the Law for a Digital Republic in 2016 (Article L. 321-9 of the Internal Security Code). Before that, these competitions were considered as gambling. One of the conditions for organising a competition is that the total amount of entry fees paid by players must not exceed the total cost of organising the competition. It is therefore not possible for the organiser to make a profit solely from the players' entry fees.
- Today, online competitions requiring an entry fee are still prohibited as they fall under the gambling regime.
Publishers' intellectual property rights:
- As holders of the intellectual property rights to their video games, publishers can impose rules on the use of their games in competitions. In addition, tournament organisers must obtain permission from publishers to use their games in a competitive context.
- To this end, publishers will grant licences to video game tournament organisers, imposing certain rules on the use of the said video games. These rules may relate to the banning of certain sponsors, the use of the publisher's trademarks or the dates of the competition.
The role of publishers in organising video game competitions:
- Most publishers will be involved in organising eSport competitions for their games, for example by deciding on the number of tournaments to be held each year and also by publishing a rulebook, i.e. a set of rules designed to govern the competitions organised. These rules cover such matters as player eligibility, remuneration, competition rules and penalties for non-compliance with said rules.
- Conversely, other publishers allow third-party companies greater freedom to organise competitions and create their own circuit, subject to compliance with a licence granted by the publisher.
May 2024 report by the General Inspectorate of Education, Sport and Research on eSports governance in France
- This report makes 12 recommendations, including one relating to an assessment of the legislative provision on employment contracts for professional video game players (eSports players). France’s Digital Republic Act also introduced a fixed-term employment contract for eSports players (Article 102 of the Digital Republic Act). However, in practice, this fixed-term contract is not used because it is not suited to the specific characteristics of eSports, which means that eSports professionals enter into contracts for the provision of services. The drafting of such contracts is particularly important, both for players to protect them and for their team to avoid any reclassification as an employment contract.
Our services
- Support in negotiating and entering into contracts with professional video game players;
- Support in drafting and reviewing publishers' rulebooks;
- Support in drafting licences for the organisation of video game tournaments.
