Page 24 - LA Games Conference Materials

FAQs Regarding VR Arcade Legal Issues
Virtual Reality (VR) and VR arcades are rapidly growing. As the cost for owning high performance VR hardware platforms and content remain high, it may be more practical for avid players to visit VR arcades to experience what this burgeoning technology has to offer. Even as the costs come down, there likely will be a business case for VR arcades, just as there was a case for video game arcades despite economical home-based game systems.
Entertainment giants such as IMAX and start-ups alike are jumping into the space. Additionally, hardware and content companies will develop products and services for the VR arcade operators. As this ecosystem grows, unique legal issues will arise for each of the stakeholders, including arcade operators, hardware providers and content producers.
The meteoric rise of eSports, competitive gaming and real-money skill-based gaming may create opportunities for some unique and lucrative business models for innovative VR arcade operators. These business models, however, pose a host of thorny legal issues. Careful structuring and legal advice is needed to avoid crossing the line into illegal gambling. Developing comprehensive IP strategies may be critical to protecting these innovations. Many other creative business models and legal issues will emerge.
This paper addresses frequently asked questions concerning legal issues with VR arcades. It highlights some of the important issues, but only scratches the surface. Other legal issues may be applicable depending on the facts associated with your IP and business model.
The key takeaway from this paper is that unique legal issues, spanning various legal disciplines, will arise with VR arcades. It is important to find legal counsel that has the breadth and depth of experience necessary to advise you on these issues. Sheppard Mullin has unique capabilities in this area. It has one of the largest groups of interactive entertainment lawyers focused on games, VR, virtual worlds, entertainment venues and the IP and other legal issues that arise in this field.
If interested, click here to request a complimentary initial legal consultation with or custom presentation from Sheppard Mullin’s lawyers who practice in the relevant areas.
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