August 2020

The COVID-19 pandemic has had a large effect on our entertainment consumption. Some entertainment industries have taken significant hits, while others have been more fortunate in their rise. Videogame streaming is one such industry on the rise. During the pandemic, the global viewership of popular streaming platforms Twitch and YouTube Gaming increased by 10% and 15%, respectively. This increase in viewership appears to be directly correlated with the local severity of the pandemic. For instance, when Italy was experiencing the worst outbreak in Europe, the hours of live gaming content streamed in that country increased by an estimated 66%.

It is clear that the business of videogame streaming is increasing. And like other big businesses, videogame streaming is subject to complex legal issues. Because videogame streaming is a relatively nascent industry, many of its legal issues have yet to be decided in a court of law.

The California court of appeals recently allowed a defamation claim to proceed against a company’s CEO for libelous social media posts made about a former employee after her termination. According to her complaint, the employee had been the company’s only female senior executive during her tenure. Following a brief, rocky stint with the company, the employee was terminated, and she filed a lawsuit against the company, asserting claims for gender discrimination, retaliation, and harassment.

On June 17, 2020, the Southern District of New York issued an opinion and order in a complex matter between a social media gaming celebrity and a contract he signed with an esports and entertainment company. (Faze Clan, Inc., v. Tenney, 19-cv-7200 (JSR) (S.D.N.Y. July 17, 2020) (2020 WL 3318209).)