Jean-Sébastien Mariez |
French Government is
currently engaged in a number of initiatives in the area of internet
governance, including net neutrality, open data, e-privacy, connectivity, and
e-sport. All this is within the framework of the so called République Numérique initiative.
Last week, French
Parliament adopted a draft regulation on e-sport. Katfriend Jean-Sébastien
Mariez (De Gaulle, Fleurance
& Associés) explains what this is about.
Here's what Jean-Sébastien
writes:
"On 30 June 2016, the French Parliament put the finishing
touch to the French regulation on e-Sport. This new regime is inserted into the
so-called French Digital Republic Bill (the Bill) that is expected to enter into force
within the coming weeks.
The key provision of the Bill in regards with e-sport clarifies
the conditions that have to be satisfied by 'video game competition' organizers
not to fall within the legal regime that prohibits the organization of
lotteries' (ie principle of prohibition of gambling and games of chance – the
Principle of prohibition).
Indeed, under the current law, there is a substantial risk for
e-sport competitions to be prohibited under that Principle of prohibition
(please see below b)). With the objective to ease the development of video game
competitions, the Bill provides - subject to certain conditions - for a
derogation to the Principle of prohibition (the Derogation).
The Bill establishes 2 different regimes, depending on whether or
not the competing gamers are physically present in the place where the video
game competition takes place:
a.
Video game competition requiring the
gamers to be physically present: in
this first scenario, the organizer willing to benefit from the Derogation would
have to satisfy the following conditions:
o
file a specific declaration with the French administration;
o
such a declaration will detail the measures and processes set up
by the organizer in order to satisfy the following conditions:
·
ensure that the amount corresponding to the cost borne by gamers
participating to the competition does not exceed a certain percentage of the
total cost related to the organization of the competition itself. The exact
percentage not to exceed has yet to be determined by a decree;
·
ensure that the total amount corresponding to the prices (either
cash prices or other type of prices) is effectively returned to the participant
gamers, except in the situation where the total amount corresponding to the
value of the prices does not exceed a specific threshold. The amount
corresponding to such a threshold has yet to be determined by a decree.
b.
Video game competition taking place
online: the
above mentioned Derogation does not apply to this second scenario.
Therefore, the legality of such kind of video game competition
will still have to be assessed in light of the four steps test applicable to
lotteries. In accordance with that test, the Principle of prohibition applies
only when four cumulative conditions are verified: (i) the gamer hopes for
a gain/a price; (ii) the offer to join the competition is public; (ii) the
outcome of the competition depends, at least in part, on luck; (iv) the
participation to the competition involves a financial contribution from the
gamer.
This being said, the Bill brings something new in respect of the
last condition ie financial contribution. Indeed, the Bill specifies that the
cost related to the access to the internet (A) and to the price of the video
game itself (B) cannot be considered as a financial contribution as such. As a
consequence, its seems like the Principle of prohibition might be set aside
every time a competition would not require from the gamer other financial
contribution than A and B. In such a case, condition (iv) would not be
satisfied and therefore, the competition would be authorized.
Note also that the Bill specifies the conditions for minors to participate to e-sport competitions
either as amateur or professional gamers. It also clarifies the conditions
under which a professional gamer can be hired in compliance with
employment law. This said, the Bill does not provide any specific rules
regarding to the ownership and/or the transfer of IP rights related to the e-sport competition.
My own recommended next steps are as
follows:
o
closely monitor the drafting of the expected decree;
o
ensure that e-sport events to which you may be associated with will
comply with the conditions applicable to scenario a) or b)."
Thanks
for this update Jean-Sébastien!
e-Sport in the French Digital Republic Bill
Reviewed by Eleonora Rosati
on
Monday, July 04, 2016
Rating:
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