By Meelad Sadat
In 2011, two prominent game industry lawyers took it upon themselves to collectivize their colleagues and establish an organization for anyone interested in practicing law in games. David Rosenbaum, whose private practice has represented game clients for 20 years, and Patrick Sweeney, a thirteen year veteran of both in-house and outside counsel to game companies, founded the Video Game Bar Association (VGBA).
As Rosenbaum put it, it was an idea whose time had come.
“When Patrick and I first started talking about forming the VGBA, we noted that while there are various ‘legal’ activities organized in conjunction with industry conferences and industry organizations, [such as] the ESA and IGDA, until we started the VGBA, there wasn’t an organization that provides a community for lawyers working in the industry to discuss issues of common interest to all lawyers around the world – regardless of which side of a transaction or litigation a lawyer finds his or her client,” says Rosenbaum.
“The lawyers that tend to practice in this industry all have one common trait – our clients,” says Sweeney. “We all are intricately tied to the business and legal issues pertaining to games because of the way these issues impact our clients.”
A primary goal of the organization is education, according to Sweeney. To that end, the VGBA is organizing its first conference, “Game Business and Legal Affairs,” taking place May 20-21 at University of California, Los Angeles. Well-known industry pundit Michael Pachter and ESA president Michael Gallagher join a lineup that includes lead counsel from major players such as Activision-Blizzard, Sony, Take-Two and Zynga. Among topics being discussed is the debate around video game violence. However, as Rosenbaum and Sweeney point out, the overarching goal of this inaugural VGBA gathering is to bring to the forefront the growing complexity of practicing game law. That includes how the industry’s expansion into digital platforms is introducing new legal challenges.
We talked with them about the event.
Is the conference intended for lawyers only or are you trying to expose a broader audience to the legal issues that games face?
Rosenbaum: The conference is intended for both “experienced” game industry lawyers as well as lawyers interested in representing clients in this space. For our members, this conference is another way that we want to provide a community for lawyers to discuss issues of common interest to all lawyers without regard to positions on specific matters. As Patrick mentioned, the lawyers who regularly practice in the games industry have our clients as a common trait. We all do business in the same industry and new developments in distribution and platforms and IP law impact the larger industry and conferences like this one give attendees exposure to larger industry issues so that they can apply what they learn to the specific needs of their clients.
Sweeney: Similar to the goal of the organization, this event is designed as an in-depth program for legal and business issues facing games companies. At its core, the conference is focused on legal issues and l expect the audience will be attorneys that practice or are interested in this field. However, we also have some terrific speakers from the business side of the industry. Their perspectives will help to frame the legal significance of our topics.
Two topics seem to anchor your conference — doing business in China and the issue of violent games. What are other hot button issues you’ll be covering?
Rosenbaum: Our goal is to discuss current developments in each session. A number of sessions are of the type that one would expect to find at any entertainment legal conference, e.g., the session on IP matters, but we will focus on current developments in IP, employment law and other areas. Doing business in China and the issue of violence in the media are long-standing topics which remain important: China is a leading market in many industries and lawyers have been suing entertainment companies over violent content for decades, but current events keep these issues very topical. Other “hot” issues include complaints over copying/cloning of games, rights or celebrities and athletes to control the use of their likenesses in games, privacy and data protection, online gambling and gaming and virtual transactions.
Sweeney: Echoing David’s perspective, I think that we’ve put together a terrific set of panels. Any one of them could be viewed as an anchor in its own right. We put a lot of effort into covering all facets of the legal world as it relates to the games business.
How has practicing law in games become more complex in the past 5 years; has it been affected by the growth of digital distribution and digital platforms?
Rosenbaum: It certainly has become more complex. The industry used to be a “console-centric” business where developing AAA games for the major platforms drove the business. Work was plentiful for independent developers fighting for many “work-for hire” jobs with major publishers. While the AAA console game remains a significant segment of the industry, the work for hire jobs have largely disappeared and one of the by-products of the growth of digital distribution and digital platforms has been to provide new opportunities for independent developers to transition from console to digital products and remain in business and thrive. With development costs for digital platforms, especially mobile/smartphone, being less than the AAA titles, more companies are self-funding and self-publishing their titles and becoming publishers of their own content. Those practitioners who used to handle what was once a high volume of console development deals for their clients must now be knowledgeable of the regulatory landscape, especially privacy laws.
Sweeney: The nature and structure of these deals has changed dramatically. Along with that, the goals and concerns of our clients has changed as well. David mentioned privacy, which is more important than ever. In addition, things like the ongoing service component of digital platforms, marketing obligations, etc. are also evolving.
We’ve had yet another milestone week with crowd funding and Brian Fargo’s Kickstarter. What do you (or VGBA) see as potential legal ramifications on the horizon for crowd funded games?
Sweeney: Kickstarter has provided a terrific alternative funding model to get some games into production. What Brian has done, along with Tim Shafer at Double Fine, Feargus Urquhart at Obsidian and many others, is very cutting-edge and entrepreneurial at its core and very good for the industry as a whole. From a legal perspective, there are a lot of issues that should go into any funding exercise, whether Kickstarter or otherwise. Tax and corporate planning, liability issues and the ongoing clarification of the JOBS Act all are potential considerations as crowd funding models continue to evolve beyond just Kickstarter.
Rosenbaum: As Patrick mentioned, there are many issues to be reviewed when advising clients on taking a crowdfunding approach. There are still many “unknowns” however, and we haven’t yet seen the release of many of the “successful” projects, where success is, so far, only measured by meeting the goals of the fundraising campaign, not the actual success of the product. Eventually, disappointment will rear itself and we will start seeing reports of litigation or regulatory action against what are perceived as abuses of these approaches, which will then require lawyers to revisit their previous guidance.