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Source: http://www.etnews.co.kr/news/detail.html?id=201010270134
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In 27th, Gretech, KeSPA, Progamer teams, and broadcasting stations came together for another round of IP rights negotiation, but it has come to an end without any solution. Due to both sides unable to compromise their opinions, it is expected that the lawsuits will come next.
Up till right before the negotiation, both sides successfully agreed on the cost and the division of Proleague and individual leagues. However, 'Involvement of KeSPA in negotiation when negotiating individual leagues' and 'Negotiation for all Blizzard games including StarCraft 1 and 2' had differing opinions that could not be resolved.
There was hope that if Proleague-related agreements were concluded successfully, it would lead to successful future individual league negotiations -- leading to the end of IP rights negotiation. But, due to the negotiation failing, as Blizzard revealed, a lawsuit is to be expected soon.
Blizzard and Gretech will show up together for this lawsuit, and the target of the suit is most likely to be MBCGame. Blizzard already stated they will do so, and they see that MBCGame is not being cooperative or active in the negotiation process.
In regards to IP rights lawsuits, most of the time, the court will accept cease and desist request right away. That can lead to canceling the leagues. But, this time, it involves the viewing rights of many viewers, so it remains to be seen how the courts will decide.
MBCGame Jo Jeong Hyun stated, "We will continue to try our best to negotiate and to create a good outcome, but if they want to bring on a lawsuit, then we must deal with it. They are saying our attitude is a problem, but MBCGame has always been active in the negotiation process and will continue to do so with open mind."
He also stated, "Lawsuits are, in the end, only end up bringing negative impact on both sides. We must be quick to find a middle ground to successfully end the negotiation."
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Edit: Here are some additional information from Yonhap's version.
Source: http://news.naver.com/main/hotissue/read.nhn?mid=hot&sid1=105&gid=321647&cid=303948&iid=328816&oid=001&aid=0004731591&ptype=011
I will give you a brief condensed note of the article:
Blizzard has sent MBCGame and OnGameNet a note requesting them to stop broadcasting. MBCGame refused to follow. So, MBCGame is being targeted for the lawsuit.
KeSPA countered by saying, any and all games that are being used for e-sports purposes are all public property, and cannot have their IP recognized by anyone. So, despite the threat of lawsuits, StarCraft leagues continue with blessings from KeSPA.
This is happening because e-sports is a new field where there is no precedent set in law, and the explanation of controversial IP rights differs from person to person.
The core of this controversy is the IP rights, and neighboring rights. The problem is that these two rights are likely to be given to two different entities.
Current law sees the broadcasting rights of copyrighted property to be part of the rights for the original IP holder. This means, if the developer of the game has the IP rights, then the right to broadcast also belongs to the developer.
A law professional commented, "Even if it is a large e-sports scene where a lot of people are involved, the right to broadcast is part of the IP rights, and it belongs to the IP rights holder. There is IP rights violation if broadcasting stations broadcast without negotiation with Blizzard, only because of negotiation with KeSPA."
But, the neighboring rights -- including the rights to performance -- is likely to be seen as a rights belonging to KeSPA. Although this rights to performance generally is about taking music, then performing it, it can be explained that it is a right acknowledged by spreading the news about the private intellectual property through performance.
This means, progamers that are part of KeSPA could have the neighboring rights acknowledged due to unifying a game into the e-sports culture.
An industry insider said, "This dispute can only produce more controversy even if it goes to the courts. It is important to leave a good precedent, as a leading nation of e-sports, through Blizzard and KeSPA coming to an agreement in the negotiation.