Dealing with sponsorships and endorsements in eSports can be challenging, especially for professionals and businesses new to the industry. Learning the main legal points can help you avoid costly mistakes and build better eSports partnerships.
Key legal considerations
Be aware of the following legal considerations in eSports sponsorships and endorsements:
- Clear contracts: Make sure your sponsorship agreements clearly state the expectations and obligations of both parties. This means writing down how long the deal lasts, what each party needs to do, and how payment works. Clear contracts help avoid misunderstandings and disputes.
- Intellectual property rights: You must protect your brand and content. Your agreements should state who owns any content made during the partnership, such as logos, trademarks and any promotional materials.
- Compliance with advertising laws: In Indiana, as in other states, you must comply with advertising laws and regulations. This includes ensuring that all promotional activities are truthful and not misleading. The Federal Trade Commission (FTC) also says you must clearly indicate when content has sponsorship.
- Exclusivity clauses: Many sponsorship agreements include exclusivity clauses that prevent you from entering into similar agreements with competitors. While these can be beneficial, they can also limit your opportunities. Carefully consider the implications before agreeing to such terms.
- Dispute resolution: Including a dispute resolution clause in your sponsorship agreements can save time and money if conflicts arise. This clause should outline the dispute resolution process through mediation, arbitration or litigation.
Knowing these legal considerations can help you avoid signing unfavorable contracts or agreements against the law.
What to do when signing sponsorships and endorsements
Before signing sponsorships and endorsement agreements, consider doing the following:
- Consult a lawyer: Working with a lawyer who understands the eSports industry can help you draft and review contracts to ensure they meet your needs and follow Indiana laws.
- Stay updated with new laws and industry changes: eSports laws keep changing. Stay up to date so your contracts follow the rules.
- Negotiate for fair terms: Don’t be ashamed to ask for terms that protect you. A fair and balanced agreement benefits both parties and fosters a positive working relationship.
When you handle these legal points early, you can build strong sponsorships and endorsements that help your eSports business or career grow. If you need help with legal matters, consider contacting an experienced lawyer who can guide you.
