Riot Games, the developer of popular titles such as Valorant and League of Legends, has officially launched a Dispute Resolution Mechanism (DRM) to address legal disputes within its esports ecosystems in the EMEA region. This new system aims to facilitate quicker resolutions for contractual and financial conflicts among players, coaches, and teams participating in Riot’s Tier 1 and Tier 2 leagues for League of Legends and VALORANT.
Riot Game Launches Dispute Resolution Mechanism in EMEA
As of November 7, 2024, the DRM is live and ready for use. It specifically targets issues such as unpaid prize money, salaries, transfer fees, and bonuses. However, it does not cover disputes involving Riot Games itself. The DRM is designed to streamline conflict resolution while maintaining fairness.
The DRM will be managed by Martens Rechtsanwälte, a law firm based in Munich that specializes in dispute resolution. This firm will oversee the administration of the DRM and appoint independent arbitrators to handle each case.
Alberto Guerrero, Riot Games’ Head of EMEA Esports, stated during a press conference at Worlds 2024, “Many legal disputes arise in our esports scenes between teams and talent — but it is legally difficult for Riot Games to deal with those incidents. This solution allows us to remain neutral.”
EMEA Teams Participation Voluntary
Participation in the DRM is entirely voluntary. Stakeholders can choose whether to resolve their disputes through this mechanism or through traditional legal channels such as local courts. Riot Games has been actively encouraging teams, players, and agents to integrate the DRM into their contracts.
Engaging with the DRM involves certain costs. Claimants will pay a Handling Fee ranging from €500 to €4,000, depending on the dispute’s value. Additionally, both parties will share an Arbitrator’s Fee of €1,000 to €5,000. David Menz, a sports lawyer for Martens Rechtsanwälte, explained, “This system would by default involve one round of written submissions, and no hearing… decisions are taken on purpose specifically to keep costs down.”
While these fees may seem significant, Menz argued that using the DRM is often cheaper than pursuing legal action through national courts due to the international nature of esports.
Legal Aid Fund for Financial Support
To alleviate financial burdens on participants, Riot Games has established a Legal Aid Fund. This fund aims to assist individuals who may not have sufficient means to access the DRM. Although Riot has not disclosed the total amount available in this fund, it has outlined eligibility criteria for applicants.
Valérie Horyna, EMEA Esports Rules and Compliance Manager at Riot Games, emphasized that the DRM is “setting a new standard for esports” during the press conference. She added, “Esports continues to evolve and we believe maintaining contractual stability and integrity is becoming more important.” Horyna also noted that resolving contractual disputes has historically been complex due to varying legal processes across many countries in EMEA.
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