How Do Name, Image, and Likeness (NIL) Rights Apply in Esports?

The global appeal of athletes, entertainers, and other public figures has long been a driving force in brand marketing. As esports and video games become deeply embedded in mainstream entertainment and popular culture, celebrity endorsements present significant commercial opportunities. However, leveraging name, image, and likeness (NIL) rights in gaming requires careful legal navigation to mitigate potential risks.

The Power and Legal Complexities of NIL in Gaming

The strategic use of celebrity NILs in esports and video games can enhance brand visibility, attract new audiences, and create compelling marketing narratives. However, failure to properly secure usage rights and adhere to applicable laws exposes companies to litigation, financial penalties, and reputational harm.

Individuals generally retain exclusive rights to monetize their NIL unless they grant a license to a third party. A high-profile example arose in 2018 when the Egyptian Football Association (EFA) featured Mohamed Salah’s likeness on its official team plane. The aircraft was sponsored by WE, a telecommunications provider that competes with Vodafone—one of Salah’s key endorsers. In response, Salah and his legal team objected, threatening to withdraw from the national team. Ultimately, the EFA conceded.

To avoid similar disputes, companies integrating NILs into their esports and gaming strategies should consult experienced counsel to address critical legal considerations, as outlined below.

Essential Components of an NIL Licensing Agreement

An NIL licensing agreement ensures that all parties align on the terms of use, financial arrangements, and legal protections. Key provisions include:

• Consent: Securing explicit, written authorization to use an individual’s NIL, specifying the scope, duration, and permitted contexts.
  
  
• Compensation: Determining appropriate financial terms based on the individual’s market value, usage scope, and projected commercial impact.
  
  
• Confidentiality: Safeguarding sensitive contract details and proprietary information exchanged during negotiations.
  
  
• Intellectual Property Rights: Clarifying whether trademarks associated with the individual are included and outlining ownership rights over newly created assets.
  
  
• Transformative Use: Defining how modifications of an NIL, particularly in video game settings, comply with legal standards for transformative works.
  
  
• Defamation and False Endorsement Protections: Preventing misleading portrayals and ensuring proper disclaimers to avoid consumer confusion.
  
  
• Term and Termination: Establishing agreement duration, renewal options, and conditions for early termination.
  
  
• Dispute Resolution: Specifying mediation, arbitration, or litigation procedures, including governing law and jurisdiction.

Comprehensive agreements incorporating these elements protect all parties and mitigate the risk of costly legal conflicts.