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Tips for drafting an eSports contract

On Behalf of | Jul 4, 2023 | Business Law

The field of eSports has exploded in recent years, resulting in many business opportunities that require the drafting of complex agreements or contracts. Whether you are a business owner, player, promoter or sponsor, you will probably be involved with a contract at some point.

There are various types of contracts involved in eSports. Some of these include endorsement, player or sponsor contracts, or license agreements designed to protect intellectual property rights.

Always check the current regulations

The eSports environment changes often, with new rules and regulations being implemented as the field continues to evolve. Although basic Indiana contract rules apply when creating an eSports contract, there are some important and unique things to consider in an eSports contract.

Make sure all contract terms are as clear and unambiguous as possible. Vague contract terms are almost guaranteed to lead to future problems and confusion over interpretation. A contract should also be thorough, detailing everyone’s complete roles, responsibilities and legal rights.

Don’t forget termination language

Clear terms regarding contract termination are very important. Contracts may end due to unexpected events, or circumstances may simply change, which makes the contracts impractical or impossible to perform. This is especially true in the relatively new eSports industry.

An eSports contract should do more than simply state when or under what conditions the contract can be terminated. Terms specifying the exact steps to be taken in the event of termination should be included.

Endorsement agreement considerations

If you are drafting an endorsement agreement, check the Federal Trade Commission guidelines. There are various rules that must be followed, and it is important to research the most current rules, so you know what language to include in the contract.

This is just a basic overview of things to consider when drafting an eSports contract. As in any contract, the details are extremely important. Essential information that is missing or inaccurate can cause many complications and problems. Working with an experienced business attorney can help you prevent any potential problems when drafting your contracts.

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