Russian legislators have proposed a revolutionary approach to esports competitions. They aim to exclude major intellectual property holders when operating esports competitions within Russia.
This news, first reported by kommersant.ru and Esports Legal News’ Leonid Shmatenko, could potentially shake the foundations of the global esports industry.
Details of the Meeting and Proposal
In a meeting of the State Duma’s Committee on Physical Culture and Sports, with representatives from the Ministry of Digital Development and the Russian Esports Federation, a plan was introduced to organize esports tournaments without needing permissions or direct licensing agreements from major game developers like Riot Games, Activision Blizzard, Ubisoft, Epic Games, and others.
A Response to International Sanctions
The legislation is likely a strategic move by the Russian government to boost esports and circumvent international sanctions amidst the ongoing war with Ukraine.
The proposed public law company (PLC) would manage licensing rights, holding money for a three-year period. The ambiguity surrounding the determination of fair market value for these licensing fees, without consulting external esports stakeholders, raises significant questions.
Potential Consequences and Concerns
There are concerns that this move could lead to a domino effect, potentially isolating Russian teams and players from international competitions.
The proposed legal framework introduces the term “innovative sports” for physically-involved esports, like virtual reality games, and suggests “free use,” possibly as a countermeasure to foreign rights holders’ reluctance in licensing software technology for Russia’s 2024 Future Games.
Future Games and Game Titles
The proposed legislation seems to be a reaction to sanctions impacting international business within Russia, and in preparation for the Future Games, announced by Russian President Vladimir Putin and Chinese President Xi Jinping.
While popular games like Dota 2 and Counter-Strike could feature in these events, Riot-owned titles are less likely, despite Tencent’s ownership. Titles from Tencent, like Honor of Kings, are more probable candidates.
Professional Teams’ Participation
Reports from Russian news outlet Tatar-inform indicate ongoing negotiations with teams like Team Spirit, Virtus.Pro, and Fnatic for participation in these events.
Broader Implications in Entertainment
This move aligns with broader legislative trends in Russia, considering allowing the open broadcasting of pirated entertainment in cinemas and TV networks.
A Groundbreaking Proposal in the Esports Industry
Russia’s proposal to organize esports tournaments without the consent of intellectual property holders marks a significant departure from established norms.
It reflects a broader strategy to adapt to international sanctions and reshape the esports landscape within its borders.
The success of this initiative and its implications for the global esports industry remain to be seen, but it undeniably signifies a pivotal moment in the relationship between esports and intellectual property rights.