Insight

TMT Looking Ahead Report 3: Interactive Entertainment and Metaverses

Emerging new interactive entertainment technologies and metaverses are creating opportunities for companies to scale and diversify their businesses. With this watershed moment comes the need for companies to consider how to manage heightened regulatory scrutiny vis-a-vis consumer protection, antitrust, data and more.
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The emergence of new interactive entertainment trends and technologies have resulted in opportunities. At the same time, the regulatory pressure on in-game microtransactions, particularly loot boxes, is increasing. Video gaming companies have experienced heightened regulatory scrutiny from a consumer, youth protection, antitrust, data protection and consumer law perspective, including around the use of big data, adtech, evaluation of player behavior, chat monitoring and novel ways of engaging with end users.

We assist the world's leading mobile gaming companies, game distribution platforms, app distribution platforms, game developers, game publishers and AR/VR companies. Our experience means that we combine genuine specialism with a thorough understanding of key issues and market disruptions across the interactive entertainment sector.

How we can help

  • M&A and fund raising. Significant investment in the interactive entertainment sector has resulted in the emergence of new trends, technologies, business models and opportunities. It is important to understand what the touchpoints are, the issues that may impact deal momentum and how to move forward in a beneficial manner. We provide a complete transactional service covering all M&A and corporate legal issues, and approach your transaction in a holistic manner, in targeted sequenced steps and timed to identify and mitigate risks and achieve cost efficiency.
  • Regulation of microtransactions. The regulatory pressure on in-game microtransactions, particularly loot boxes, is increasing and it is essential to keep ahead of regulation and develop new future-proof monetization models. Consumer law questions are also raised around terms and conditions, right to withdrawal, information obligations, geoblocking regulation, indication of prices and currencies, and virtual currencies.
  • Regulation and compliance. Video gaming companies have experienced heightened regulatory scrutiny from a consumer, youth protection, antitrust, data protection and consumer law perspective, among other compliance areas. We provide multijurisdictional advice on contentious and non-contentious youth protection matters, including due diligence on youth protection and age-gating requirements, advertisement restrictions and appeals of age-rating or other youth-protection-related classification decisions.
  • Data protection and security. Data protection is a crucial issue for interactive entertainment companies. We work with video gaming companies on all fields of data protection law globally, including around the use of big data, adtech, evaluation of player behavior, chat monitoring and novel ways of engaging with end users. This includes advice on GDPR compliance, processing of personal data of minors, policy drafting and local law amendments, data transfer agreements, cyberattacks, and data protection issues in an employment context.
  • Intellectual Property. As an industry based on art and creation, every video gaming company has IP protection as a primary concern. We advise a wide range of interactive entertainment companies across the globe on contentious and non-contentious patent and trademark, copyright, trade secret and licensing matters. We have advised on development agreements, brand strategy, merchandising agreements, assignments of IP, licensing, copyright, designs, IP issues in relation to the use of cheats, use of NFTs, notice and takedown procedures and IP enforcement, among others.

Episode 68: Protecting Your Interactive Entertainment and Metaverse Assets

The arrival of the metaverse presents opportunities for companies, as it is quickly becoming a platform for the distribution of products and services. The opportunities come with unique and complex legal challenges, given the relative novelty of this concept. In this episode, Teresa Michaud, Jose Maria Mendez, and Marcela Trigo* focus on the possible issues that companies may face when it comes to the protection and enforcement of intellectual property rights in this interactive space. For more helpful insight on these and other topics on the interactive entertainment sector, please read our short articles in Report 3 of TMT Looking Ahead 2022.


*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law


Episode 66: Outlook for M&A and Financing Transactions in the Interactive Entertainment Sector

Last year was a landmark year for the Interactive Entertainment sector with record M&A and financing deal values amounting to USD 85 billion, but this was easily exceeded by even higher deal values in the first few months of 2022. In this episode, Teresa Michaud, Lisa Fontenot, and Tino Marz discuss the key developments that defined the M&A and investment market in recent few months and the possible outlook they see for transactional activity in the IE sector. For more helpful insight on these and other topics on the Interactive Entertainment sector, please read our short articles in Report 3 of TMT Looking Ahead 2022.


Episode 65: How the Cloud is driving Interactive Entertainment

The adoption of cloud services is essential for Interactive Entertainment companies that are looking to expand their businesses by offering content on demand and cloud-based games. In this episode, Teresa Michaud, Carlos Vela-Trevino and Dominic Edmondson look into the factors that will affect the demand for cloud services and the issues and challenges that have an impact on this sector's cloud adoption strategies. For more helpful insight on these and other topics on the interactive entertainment sector, please read our short articles in Report 3 of TMT Looking Ahead 2022.

Episode 57: Consumer Protection in Video Games - Age Rating (Spanish version)

TMT Talk continues to focus on consumer protection in video games. In this episode. Harry Valetk, Carlos Davila-Peniche, and Daniel Villanueva discuss, specifically, the intricacies of age ratings, how to comply to them, and if there are international standards that apply to them.


Episode 56: Consumer Protection in Video Games - Advertising (Spanish version)

In this episode of TMT Talk, Harry Valetk and Cecilia Maspero look into the advertising aspect of consumer protection in video games.


Episode 54: Gaming on the Rise: Market Levelling Up in Latin America (Spanish version)

In this episode of TMT Talk, Harry Valetk and Carlos Vela-Trevino focus on the important market and legal trends in the video game industry in Latin America.


Episode 51: Consumer Protection in Video Games — Age Rating

In this episode, Harry Valetk, is joined by Carlos Dávila-Peniche, based in Mexico City and Daniel Villanueva, based in Guadalajara, to discuss consumer protection in video games with a special focus on age ratings. Join us to hear more about how to meet challenges around age ratings, global classifications, localization expectations, how to comply with age ratings in app stores or console purchases, and much more.


Episode 50: Gaming on the Rise: Market Levelling Up in Latin America

In this episode of TMT Talk, Harry Valetk, is joined by Carlos Vela, a technology partner located in Mexico City, and Flavia Rebello, an IP partner based in São Paulo to discuss what's going on in the LatAm region with respect to the video game industry, its size and the legal and market trends. In addition, our partners will talk about the key trends in the region, including around investment, regulation and localization, and much more.


Episode 48: Consumer Protection in Video Games – Advertising

In this episode of TMT Talk, Harry Valetk is joined by Renata Amaral, Head of the Environment, Climate Change and Sustainability Practice Group at Trench Rossi Watanabe in Brazil, to discuss consumer protection in the video gaming industry with a special focus on advertising. Learn what makes video game consumers a special category of consumers, who acts as providers according to the law and court decisions, how the law considers children video game consumers and much more.


Episode 46: Monetization Challenges in Video Games – Loot Boxes (Spanish version)

TMT Talk continues to focus on the interactive entertainment sector in Latin America. Harry Valetk discusses trends and issues relevant to monetization in video games with Carlos Davila-Peniche.


Episode 44: Monetization Challenges in Video Games – Loot Boxes

In this episode of TMT Talk, Harry Valetk, is joined by Tiago Zapater, a litigation partner at Trench Rossi Watanabe in Brazil, to discuss the monetization challenges in video games. Listen in to learn how video games sell and make money, loot boxes and their significance in the region, recent decisions and class actions in Brazil and much more.


Episode 36: EU Digital Markets Act

The EU Digital Markets Act has been proposed in order to further regulate the digital economy. In this episode of TMT Talk, Carolina Pardo is joined by Paul Johnson and Laura Philippou to discuss the potential scope, approach, and effectiveness of this new legislation. Our panel of experts will also give their perspective on the current status of the DMA, and what next steps the Technology, Media & Telecoms industry can expect.


Episode 35: EU Digital Services Act - What are Your Obligations?

On December 15, 2020, the European Commission published the first draft of the Digital Services Act ("DSA"). In this episode of TMT Talk, Carolina Pardo discusses this impactful legal development with Ben Allgrove, Rebecca Bland, and Julia Dickenson. Our TMT industry experts highlight the key points of the DSA, give their perspectives on the new obligations included in it, who they apply to and provide updates on progress relevant to this new law.

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Our interactive entertainment expertise encompasses a full-service solution, including important areas such as IP, data privacy security and e-commerce. We have worked with a wide range of interactive entertainment companies across the globe,  advising clients on all fields of data protection law, including GDPR compliance, processing of personal data from minors, policy drafting and local law amendments, data transfer agreements and cyberattacks in different jurisdictions. We have a deep understanding of the evolving e-commerce space for digital items and can advise on consumer requirements in multiple jurisdictions, geoblocking regulations, terms and conditions, right to withdrawal, information obligations and indication of prices and currencies.

In its editorial, Chambers commends Baker McKenzie as a “full-service international firm with a strong profile in digital media” with “significant expertise in relation to online content exploitation and other areas at the cutting edge of technology . . . and very active in new tech convergence.”

Our interactive entertainment lawyers know to play the interactive entertainment industry well and on a global level. We are recognized for our expertise and experience in areas that develop and drive interactive entertainment forward.

In the TMT space, we are ranked high in the following areas:

  • Band 1 in TMT – Chambers Global, 2008 to 2021
  • 85 M&A lawyers ranked globally – more than any other law firm (Chamber Global 2021)
  • Largest data and technology group in the world with an integrated network of local lawyers in 40+ countries across four regions
  • Top 20 elite firm according to Global Data Review – the only legal global ranking in the field of data

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