A few minutes ago, Riot Games, the publisher of League of Legends (LoL) and VALORANT, two of the world's biggest esports titles, which also organizes the Tier 1 competitions in these titles, announced that a voluntary and independent arbitration court is being introduced in the EMEA region with immediate effect. The arbitration court is called “The Dispute Resolution for Riot Games’ Esport (EMEA)” (The DR) and is under the independent administration of the law firm Martens Rechtsanwälte.

During the League of Legends World Championship in London last weekend, Riot Games presented the DR to a small number of selected journalists and lawyers, including the esports team of SKW Schwarz, during a media brunch.

By introducing the arbitration court, Riot Games EMEA is pursuing the goal of improving the stability and sustainability of its competitive ecosystems and creating more mutual trust. This makes sense, since a not insignificant number of disputes have not yet been able to be resolved. The press release states: “The initiative will bring a whole new level of professionalism, contractual stability and integrity to Riot Games' esports in EMEA.” Valérie Horyna, EMEA Esports Rules & Compliance Manager at Riot Games, continues: “Solving contractual disputes has historically been very complex, especially in EMEA, which has different legal processes across many countries. We're seeking to help solve these issues, providing an easy-to-access platform for our stakeholders.”

Who/What?

The DR can be invoked with respect to all contractual and financial disputes between

(1) teams,

(2) players, and

(3) coaches

in Tier 1 and Tier 2 competitions in LoL and VALORANT.

This includes the League of Legends EMEA Championship (LEC), the VALORANT Champions Tour EMEA (VCT EMEA) and the approximately 20 regional Tier 2 leagues in the EMEA region (e.g. the LoL Prime League Div. 1 in the DACH region). Currently, more than 200 teams and over 1,500 players as well as approximately 400 coaches are active in these leagues. The DR does not deal with disputes between the above-mentioned stakeholders and tournament organizers that have been licensed by Riot Games to run one of the regional Tier 2 leagues. In these cases, Riot Games itself will take action.

The respective parties can bring all contractual and financial disputes before the DR, including long-running issues such as outstanding salaries, bonuses and prize money, as well as transfer disputes.

How?

As is typical for arbitration proceedings, the DR aims to achieve quick and cost-effective solutions for the above-mentioned disputes. It is particularly noteworthy that the independent court of arbitration is voluntary and not mandatory. This means that the respective parties have the option of resorting to the DR, but are not obliged to do so.

Should parties decide to call on the DR, the respective arbitration proceedings will be assessed by a sole arbitrator. From a large number of applicants, Martens Rechtsanwälte has selected a closed list of 14 arbitrators for a period of two years.

The process usually consists of only one written statement from each party, without any oral hearing. Deviations from this procedure are only granted in special cases. The parties will only be provided with the operative part of the arbitral award (without the reasons for the decision). This system as well as short deadlines are intended to ensure that the matter is resolved quickly. The arbitral award will be made ex aequo et bono (meaning just and fair) without the application of national law.

In the event that a party fails to comply with the arbitral award within a specified period, Riot Games may impose sporting and/or financial sanctions. Its Rules & Compliance Team is also responsible for any "appeals".

Costs

From a financial perspective, the following applies:

Depending on the value of the claim, the claimant must pay an advance handling fee ranging from 500€ to 4,000€.
Both parties have to pay half of the arbitrator fee after the arbitration proceedings. Unlike other arbitration courts, this is not an hourly payment for the arbitrator, but a fixed amount ranging from 1,000€ to 5,000€.
Riot Games has set up a Legal Aid Fund to assist parties who can credibly demonstrate that they are unable to bear the aforementioned costs.

Implementation

The Esports team of law firm SKW Schwarz will be happy to support you in every phase of the DR arbitration proceedings, drawing on its many years of experience in legal disputes in professional esports. This includes support with the preparation (e.g. incorporating arbitration clauses into old or new contracts, concluding arbitration agreements and applying for financial support from the Legal Aid Fund), the execution (including preparing the necessary written pleadings and meeting relevant deadlines), and the period after the end (including an “appeal” to Riot Games or in special situations the conduct of proceedings before a state court) of the proceedings.

For more information, please refer to the 19th episode of our free online format Esports Lunch Lectures Germany, which will take place on November 18, 2024.
>> register now <<

Additionally, more information can be found on the Riot Games website: competitiveops.riotgames.com

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