Tech & Sourcing @ Morgan Lewis

Dr. Sultan Almasoud, managing partner of Morgan Lewis’s Riyadh office, has been closely involved in the Kingdom of Saudi Arabia’s rapid evolution into a global hub for innovation. His insights on the questions below shed light on the trends reshaping technology and esports—and the opportunities they unlock for investors and operators entering the market.

As more and more purchases of digital content happen online, without delivery of any physical media to the purchaser, consumers may not be able to access their purchased content in situations where vendors have removed such content from their online libraries, platforms, or apps unilaterally as the result of the expiration or revocation of the content rights. In response to numerous consumer complaints about this occurred or threatened loss of access rights to content purchased online, California Governor Gavin Newsom signed AB-2426 into law on September 24, 2024. The bill will come into effect on January 1, 2025.

Last week, we started to take a look at key issues sponsors should be mindful of when entering into a sponsorship agreement, particularly for sponsorship of a team, event, venue, individual influencer or player, or similar arrangements.

With many sports, music, and other events returning to in-person attendance after a prolonged hiatus for pandemic-related reasons, and others continuing to be conducted in front of huge virtual audiences, we think it’s a good time to run through some of the most common issues we encounter in sponsorship agreements.

A Nevada senator introduced Senate Bill 165 (SB 165) on March 2 to the state legislature, which aims to form the Nevada Esports Commission to govern and regulate esports in the state within the Department of Business and Industry. This type of esports commission would be a first in the United States. The proposed bill defines “esports” as “a contest of multiple players using video games.” The purpose of the bill is to form a relationship with the growing industry of esports and to promote and protect the integrity of esports competition. Participation and viewership of esports competitions are rising, which also creates a substantial opportunity for digital advertising.