The popularity of e-sports has increased significantly over the past few years, with millions of people now tuning in to ESPN, Twitch, and other streaming services to watch their favorite teams and players virtually compete. These passionate fans, much like fans of traditional sports, are often willing to spend hundreds of dollars to support their favorite league, team, or player. With over 300 million estimated frequent e-sports viewers, companies know that one of the best ways to make money is to create and sell e-sports merchandise.
Understanding e-sports licensing
Both the licensor (team/league/player) and the licensee (company) benefit financially from an e-sports licensing deal. As the licensor, the team leases its rights to the company, who will then create the agreed upon products. For every licensed product sold, the team will receive a royalty. The company will also generate revenue from product sales.
Name and logo are some of the most common forms of licensed media affixed to various types of merchandise such as apparel (e.g., hats, sweatshirts, t-shirts), uniforms (e.g., jerseys), and gaming equipment (e.g., controllers). For example, Riot Games, creator of League of Legends, and high-fashion designer, Louis Vuitton, entered into a license agreement and collaborated on various products, including a case for the League of Legends World Championship trophy.
The intricacies of e-sports licensing are often hard to understand, especially because the world of e-sports is still in the early stages of growth. Fortunately, there are business law attorneys in Indiana with e-sports expertise that can help you finalize your agreements.
