BUSINESS LAW &TAX
AUGUST 2024 WWW.BUSINESSLIVE.CO.ZA
A REVIEW OF DEVELOPMENTS IN CORPORATE AND TAX LAW
It’s all fun and games until commercial, legal risks bite
VIRTUAL REALITY
Sport simulation technologies offer exciting •possibilities for entertainment and athletic training Isaivan Naidoo & Alexander Powell ENS n recent years, sports simulation technologies have revolutionised how sporting fans and athletes engage with and experience traditional sports. From realistic video games to advanced training simulators, these technologies are designed to provide immersive experiences that replicate real-world sporting activities and scenarios. However, as the industry grows, it brings with it a range of legal risks and commercial considerations for both the end users and the developers of these technologies. In this article, we explore current trends in
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sports simulation technologies and the potential risks involved in their use. Sport simulation technologies cover various applications and mediums designed to replicate realworld sporting activities and scenarios. Some of the main sports simulation technologies include: ● Sports video games such as Fifa, NBA 2K and Madden NFL provide highly detailed
FITNESS AND EXERCISE APPLICATIONS USE GAMIFICATION AND SIMULATION TO MAKE WORKOUTS MORE ENGAGING
and realistic representations of real-world sports, allowing players to control and manage their favourite teams and athletes; ● Training simulators use a combination of virtual reality, augmented reality and other technologies to create realistic environments which can simulate sporting challenges at various difficulty levels. Examples of training simulators include 3D play visualisations, virtual reality batting cages for baseball or augmented reality golf simulators; and ● Fitness and exercise applications use gamification and simulation to make workouts more engaging. Cycling application Zwift, which simulates cycling routes and races, allows users to parti-
/123RF — PLANKTONCG cipate in races remotely using Zwift bicycles. However, there are legal risks that must be well understood. Let’s look at some of them. ● Licensing and sponsorship agreements Companies that develop sport simulation technologies must ensure that they have
VIDEO GAMES SUCH AS FIFA, NBA 2K AND MADDEN NFL PROVIDE REALISTIC REPRESENTATIONS OF REAL-WORLD SPORTS
proper licensing agreements in place which grant the company the right to use relevant branding in respect of clubs, teams, athletes and other logos or branding. Unauthorised use of branding without proper licensing from the proprietary owner of the intellectual property (IP) in question may lead to claims being instituted against the company as well as potential reputational damage. Furthermore, companies must ensure they have appropriate sponsorship agreements which address the right to commercialise and use “player likeness” or other branding in their sports simulation technologies.
● Data privacy and security Sport-simulating technologies often collect extensive personal information, including biometric and/or healthcare information. Companies should ensure they have all the necessary data subjects’ consent to collect, store and process personal information through their technologies. In the absence of express data subject consent, companies should ensure one of the other grounds for the lawful processing of personal information is present, for example, the legitimate interests or the performance of obligaCONTINUED ON PAGE 2