Russian Lawmakers Propose Cutting Out Esports IP Holders

Key insights

5 slides

Managing fees

A public-law company would manage licensing fees for unauthorized IP use.

The proposal includes creating a public-law company (PLC) to manage licensing fees. These fees would be held for three years.

Risk of isolation

The policy shift may lead to the exclusion of Russian esports teams and players from international competitions.

This policy shift carries significant implications for the Russian esports ecosystem. It risks isolating Russian teams and players from global competition.

Potential impact. The policy shift may negatively impact Russian esports teams and players by potentially causing their exclusion from major international competitions.

1 / 5

Ask AI about this article

Summary

Russian lawmakers have introduced a legislative proposal that would permit the operation of esports tournaments within the country without the authorization or licensing agreements of intellectual property (IP) holders. This initiative, discussed during a meeting of the State Duma Committee on Physical Culture and Sports, aims to bypass international sanctions and facilitate domestic esports events, specifically in preparation for the 2024 Games of the Future. The proposal seeks to establish a legal framework for the free use of software technology, effectively disregarding the rights of major Western and European game developers.

The proposed legislation includes the creation of a public-law company tasked with managing licensing fees. Under this structure, fees would be held for three years; if unclaimed by the original IP owners, the funds could be redirected to the Russian Esports Federation or domestic game developers. While the mechanism for determining fair market value for these fees remains undefined, the move reflects a broader trend of Russian authorities considering the legalization of unauthorized entertainment content to mitigate the impact of international business restrictions.

This policy shift carries significant implications for the Russian esports ecosystem. Beyond the potential for legal conflict with international publishers, the move risks isolating Russian teams and players from global competition. By creating a category of "innovative sports" to encompass technology-driven physical activities, the government intends to secure a path for its planned international gaming events. However, the proposal has drawn criticism for its disregard of intellectual property rights and its potential to exclude Russian organizations from major international tournaments.