Legal Insights: Supporting eSports Dreams and Navigating the Law in Hong Kong
Recently, a captivating feature story has emerged involving local eSports underdog “Shed Skin” (蜥皮), who, with the sponsorship of philanthropist Mr. Lai Ching Lung (黎青龍), achieved a world title in Pokémon GO. This uplifting tale of achieving dreams through community support inspires many in the digital age. However, as we celebrate such accomplishments, it is essential for the general public to consider how legal frameworks impact sponsorship, gaming, and related activities, especially in Hong Kong.
Understanding Sponsorship and the Law
Sponsorship in eSports, like Mr. Lai’s support for Shed Skin, involves financial or material assistance given to players or teams. Legally, such sponsorships are often formalized in contracts that outline obligations, expectations, and protections for both parties. The Law of Contract in Hong Kong (largely based on common law principles) governs these agreements, providing remedies if disputes arise. It is advisable for any sponsor or recipient to enter into a written, clearly stated agreement. Any misunderstandings or informal arrangements can lead to protracted legal disputes.
Taxation and Prize Money
In Hong Kong, gaming prizes and sponsorships can have tax implications. According to the Inland Revenue Ordinance (Cap. 112), individuals receiving substantial prize money or regular sponsorship income as part of a trade or business may be liable to Profits Tax. Both sponsors and players should keep records of all financial transactions and seek professional tax advice to ensure compliance.
eSports and Intellectual Property
eSports competitions rely heavily on copyrighted games, logos, and character likenesses. Organizers and participants must respect intellectual property rights under the Copyright Ordinance (Cap. 528). Unauthorized reproduction or live broadcasting of game content may constitute copyright infringement. If planning to stream or post event footage online, always verify that you have the necessary permissions from game publishers.
Conduct and Fair Play
With the rise of competitive gaming, unsportsmanlike conduct—including cheating and the use of unauthorized software—could result in not only tournament bans but potential legal consequences, particularly if such actions result in financial loss or reputational damage to sponsors. Hong Kong’s Crimes Ordinance (Cap. 200) and other laws relating to fraud may apply in serious cases.
Legal Advice for the Public
1. Sponsors: Always use clear, formal contracts when sponsoring eSports players or events.
2. Players: Understand your tax obligations and comply with event rules.
3. Audience and Fans: Avoid infringing intellectual property—do not distribute unlicensed game footage.
4. All Parties: When in doubt, seek legal advice to protect your interests and reduce the risk of disputes.
eSports is a growing field in Hong Kong, filled with opportunities and pitfalls alike. By understanding relevant laws and best practices, everyone—from philanthropists and players to fans—can enjoy and contribute to this vibrant industry with peace of mind.
#LegalAdvice #HongKongLaw #eSports #PokémonGO #Sponsorship #IntellectualProperty #TaxLaw #ConsumerAwareness
