KeSPA and Blizzard near an agreement.

Milkis

5003 Posts

May 09 2011 20:06 GMT

Since there's a lot of misinformation and bad information spreading about the entire process, here's a brief summary of the entire situation, up to the "most recent" speculative stuff.

So where to start? I guess I'll start at the end of the KeSPA - Gretech negotiations.

Basically, KeSPA and Gretech were really close to reaching an agreement up till about November. KeSPA claims

KeSPA has put together a negotiation team and met around 10 times now and continued to advance the negotiations. Through negotiations and by narrowing the difference in opinions, there was a complete agreement with the exception of 2~3 articles, and in reality negotiations were very close to being settled.

It's not certain of course, but on November 25th, Blizzard apparently stepped in and demanded that KeSPA agree to Blizzard's original demands with respect to derivative works -- that is, Blizzard owns 100% of the rights. This leads to the lawsuits and leds to MBC/OGN's stance during the law case: They want to see how much rights Blizzard actually have over derivative works as the original author. This isn't too far fetched given that Blizzard announced that legal action would be the best move on October after suing MBC and OGN. Overall, however, the lawsuits didn't really reveal that much, other than a few troublesome articles within the Blizzard - Gretech contract that were called out on.

Gretech then gives up their exclusive rights to Brood War broadcasting. There's two possibilities here. One is the original interpretation -- which is that this is a result of Blizzard complying to the results of the third court case where the judge ordered only Blizzard or Gretech be represented as the plaintiff. The second interpretation, given the new speculation is that Blizzard wanted to renegotiate with KeSPA.

DES, on April 20th reported from an "Blizzard insider" that Blizzard had contacted a company that is a member of KeSPA asked the company to mediate Intellectual Rights negotiations. Essentially: the crux was that Blizzard Korea does not have the manpower to deal with this situation anymore -- since Riot Games opened up a Korean branch and absorbed many of the core Blizzard Korea members. Essentially, according to DES, Blizzard Korea is in a pinch and needs the broadcasting stations more than ever.

Il-Gan Sports reported today that the negotiations are finally settled. The fourth court case that was due on the 13th has been pushed back, and according to an insider this is because they have reached an agreement.

The fine details are still in the works, according to Il-Gan Sports. But what was agreed on was that Blizzard is recognizing the rights of KeSPA, the Progaming Team, MBC and OGN with respect to running Starcraft 1 Tournaments and ownership rights of derivative works. That is, KeSPA and the broadcasting stations can run tournaments as they please, and Blizzard will not restrict the sales of any derivative works that is created from tournaments.

Meanwhile, KeSPA and the broadcasting stations will pay Blizzard a licensing fee for Starcraft 1, as well as putting in Blizzard's logo during the contests. The license fee will be a yearly fee paid to Blizzard by KeSPA, OGN, and MBC Game separately.

An e-Sports insider has said that this was a result of a request Mike Morhaime and other Blizzard higher ups made to KeSPA. KeSPA's executive officer said that while they are not able to reveal anything in detail at this point in time, there will be good news very soon.

So, other than the fine details, it looks like the situation is beginning to settle. We will wait for official statements, but it looks like both parties have reached a preliminary agreement.

However, please note that this only applies to Brood War, and there isn't anything about Starcraft 2 yet (not to mention Gretech still holds exclusive rights to SC2 for 2 more years). Please keep speculation about Starcraft 2 Leagues to a minimum.

Sources for the overall situation.
+ Show Spoiler +

2007: KeSPA begins charging OGN and MBC for licensing fees
http://www.teamliquid.net/forum/viewmessage.php?topic_id=50641
http://www.teamliquid.net/forum/viewmessage.php?topic_id=50648

What Happened: KeSPA sells IEG rights to Proleague. IEG then charges a license fee to OGN and MBC. After some struggle, OGN and MBC give in.

Why does it matter: Blizzard begins contacting KeSPA because they felt as if their rights are violated. The negotiations begin. This plants the seeds for everything.

2007~2009: GOM drama

Official Story: KeSPA stops sanctioning Gom's Starleagues, claiming that it overworks the players (and likely also had to do with the poorer qualities), and gives teams the options to participate. A few of the teams stop participating, and GOM leagues get canned.

Speculation: KeSPA does not like GOM and "kills" them out of spite. Blizzard gets mad cause GOM recognized Blizzard's rights first. Huzzah.

April 2010: Negotiations End. Blizzard breaks off negotiations
http://www.teamliquid.net/forum/viewmessage.php?topic_id=121471

Essentially, Blizzard states that they are breaking off negotiations because they have made no progress in the three years.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=123275

KeSPA responds (and breaks NDA). According to KeSPA, Blizzard was asking for

1. Set the contract term for using its games to 1 year
2. Prior approvals about all league operations such as contracting sponsorship, marketing materials, broadcasting plan
3. License fee for running of league and all license fee of sponsorship inducement
4. Ownership of all broadcasted programs, program videos
5. Right to audit KeSPA

KeSPA also stated in this response that they were willing to pay a "reasonable" fee, so it wasn't as if KeSPA wasn't willing to pay.

May 2010: Blizzard gives exclusive rights to BW and SC2 to Gretech
http://www.teamliquid.net/forum/viewmessage.php?topic_id=127674

Basically, Blizzard gives Gretech exclusive rights to BW and SC2 for three years. KeSPA.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=128517

KeSPA responds to this overall situation through a press conference.

June 2010: Gretech initiates contact

http://www.teamliquid.net/forum/viewmessage.php?topic_id=130136

Gretech initiates negotiations. KeSPA and OGN and MBC ignores them. Gretech gave everyone a grace period until August to renegotiate.

August 2010: Negotiations begin

http://www.teamliquid.net/forum/viewmessage.php?topic_id=142560

KeSPA and Gretech enter into an NDA.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=142743

OGN signs an agreement for Korean Air OSL Season 1.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=142903

MBC Game says it's too much and ends both of their running leagues before August.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=162136
MBC's official stance.

August~October 2010: Negotiations Break Down

Raw Sources:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=148991
http://www.teamliquid.net/forum/viewmessage.php?topic_id=148946
http://www.teamliquid.net/forum/viewmessage.php?topic_id=157963

Summary:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=150858

Essentially: there's been a huge debate over PL. Gretech didn't want GSL to compete with PL, and wanted prime time slots. KeSPA says no.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=160353
Gretech warned KeSPA that they will no longer negotiate if KeSPA starts PL. KeSPA starts PL. Gretech "ceases negotiations"

http://www.teamliquid.net/forum/viewmessage.php?topic_id=161189
Gretech's official stance.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=164368
Gretech claims negotiations over, KeSPA claims otherwise.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=164545
http://www.teamliquid.net/forum/viewmessage.php?topic_id=164504
KeSPA's official stance.

http://www.teamliquid.net/forum/viewmessage.php?topic_id=161549
Gretech and KeSPA restarts negotiations.

November 2010: Before the Lawsuit
http://www.teamliquid.net/forum/viewmessage.php?topic_id=168749
Gretech's supposed final offer to the broadcasting stations.

December 2010: Paul Sams

http://www.teamliquid.net/forum/viewmessage.php?topic_id=173542

Paul Sams press conference

http://www.teamliquid.net/forum/viewmessage.php?topic_id=173841

KeSPA responds to Paul Sams

Court Cases

Blizzard Sues MBC Game:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=163043

Blizzard Sues OGN:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=166260

First/Second Court Session:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=188322

Third Court Session:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=202467

GOM TV gives up exclusive rights:
http://www.teamliquid.net/forum/viewmessage.php?topic_id=207018

Blizzard contacts KeSPA to mediate between OGN/MBC
http://esports.dailygame.co.kr/news/read.php?id=42894 (speculative + typical DES spin)

Blizzard - KeSPA reach an agreement?
http://isplus.joinsmsn.com/article/743/5465743.html?cloc=

TheWoodLeagueAllstar

United Kingdom617 Posts

May 09 2011 20:12 GMT

as an outside to bw and the scene does this solely effect broodwar or is the outcome good for sc2 aswell?

Milkis

5003 Posts

May 09 2011 20:13 GMT

On May 10 2011 05:12 Frack wrote:
as an outside to bw and the scene does this solely effect broodwar or is the outcome good for sc2 aswell?

Overall, it'll likely get GSL broadcasted on OGN and MBC in the long run, which could be a great thing for SC2. However, that's likely a fine detail that will be hammered out.

hyperioNsin

92 Posts

May 09 2011 20:14 GMT

wonder how will it end

tofucake

Hyrule19215 Posts

May 09 2011 20:14 GMT

Though I don't really follow BW anymore, it's nice to see this is all getting resolved.

Yoshi Kirishima

United States10366 Posts

May 09 2011 20:14 GMT

Really nice summary, thank you for good organization!

(Glad this got resolved rather quickly!)

MuffinDude

United States3837 Posts

May 09 2011 20:14 GMT

Lol. Riot games taking blizzard workers.

TheWoodLeagueAllstar

United Kingdom617 Posts

May 09 2011 20:15 GMT

On May 10 2011 05:13 Milkis wrote:

Show nested quote +

Overall, it'll likely get GSL broadcasted on OGN and MBC in the long run, which could be a great thing for SC2. However, that's likely a fine detail that will be hammered out.

would kespa get involved as they have with sc1? with the proteams and such

Milkis

5003 Posts

May 09 2011 20:16 GMT

On May 10 2011 05:15 Frack wrote:

Show nested quote +

would kespa get involved as they have with sc1? with the proteams and such

Unlikely.

Heyoka

Katowice25012 Posts

May 09 2011 20:16 GMT

#10

Interesting to see unfold, GSL on real TV would be pretty huge.

OnFire

324 Posts

May 09 2011 20:18 GMT

#11

Superdanielman said this on his twitter:
"Once Kespa embraces SC2 things will be a lot different, SC2 will get much bigger around the world, and let's not forget brood war folks!!!"

also this, when a couple of people responded that they didn't want kespa to "ruin" SC2 (not much to ruin in Korea, from what i've heard):
"well guys for one, there could be bunch of corporate teams, osl, mbc leagues, more exposure for players, it goes on and on and on and on..."

Kipsate

Netherlands45349 Posts

May 09 2011 20:20 GMT

#12

Hmm, as I am fairly certain that BW attracts more viewers then SC2 does currently, it will be difficult regarding timeslots and broadcasting time even IF SC2 is to be broadcasted on OGN/MBC, since I think BW airs during prime-time, and as a tv channel you obviously want the most viewers during this.
However that would mean GomTV would be screwed, as they would have to give up exclusive SC2 rights.

If this happens then perhaps OGN/MBC commercials and sponsors will be enough, no longer paying is needed for SC2(subscription like GomTV), and both the BW and the SC2 scene will profit from it, which would be awesome but sounds like an utopia

).

On the other hand could it also mean nothing at all, it could just be buisness as usual with OGN/MBC broadcasting BW(now 100% legal and without problems) and GomTV broadcasting SC2.

Nevertheless, today is a good day.

echO [W]

United States1495 Posts

May 09 2011 20:23 GMT

#13

On May 10 2011 05:18 grudgeStar wrote:
Superdanielman said this on his twitter:
"Once Kespa embraces SC2 things will be a lot different, SC2 will get much bigger around the world, and let's not forget brood war folks!!!"

also this, when a couple of people responded that they didn't want kespa to "ruin" SC2 (not much to ruin in Korea, from what i've heard):
"well guys for one, there could be bunch of corporate teams, osl, mbc leagues, more exposure for players, it goes on and on and on and on..."

SC2 doesn't need KeSPA, and in fact doesn't need Korea.

It would be nice, but we don't need it. Question to those who follow this whole KeSPA v. Blizzard. (and KeSPA in general) People generally don't like KeSPA and how heavy handed it can be. Does this whole lawsuit and legal action and just the fact that someone decided to stand up to KeSPA foreshadow any possible change in how KeSPA as an organization conducts business from here on out?

Milkis

5003 Posts

May 09 2011 20:24 GMT

#14

On May 10 2011 05:23 echO [W] wrote:

Show nested quote +

Let's not turn this into a a pro KeSPA/anti KeSPA discussion please

Vansetsu

United States1454 Posts

May 09 2011 20:25 GMT

#15

On May 10 2011 05:16 heyoka wrote:
Interesting to see unfold, GSL on real TV would be pretty huge.

I agree. Would be cool to see this on something like G4 or maybe Spike. Having high level high quality SC2 on television would be a great way to share the scene with others out here.

masterbreti

Korea (South)2711 Posts

May 09 2011 20:29 GMT

#16

This is fairly good news for BW, basically I see it as Blizzard finally backing down and letting KeSPA do its thing. Which I must say is wonderful, and have done wonders for the proscene.

The KeSPA staff themselves are great, they answer questions, and work with everyone in a fair and equal manner.

though is ogn and mbc do air sc2, we'll know bw is dead. But since that does not seem like something that will happen for many years, I don't see bw dying anytime in the next 5-10 years

barth

Ireland1272 Posts

May 09 2011 20:30 GMT

#17

Sure, KeSPA has made some questionable decisions to say the least but to have a remote chance of "ruining" SC2 to any degree they would have to have a monopoly on it as they do with BW and it's certainly not going to happen. KeSPA/OGN/MBC taking up SC2 could only mean good things, for SC2 at least.

It would be great to see BW and SC2 coexist peacefully for a long time and this news makes it so much more probable.

_Quasar_

Russian Federation4405 Posts

May 09 2011 20:31 GMT

#18

Good job, thanks for the effort of putting all the necessary info down in such a brief fashion Milkis.

And yo, almost no arguing there.

Let this be left for the original topic in "BW general" section.

nbaker

United States1341 Posts

May 09 2011 20:34 GMT

#19

I'm glad Broodwar isn't in danger anymore. Truth be told, I haven't actually felt it was in trouble since the very beginning of litigation, but it's very nice to know for sure that Broodwar can continue as it is. Thanks, Milkis!

HaFnium

United Kingdom1078 Posts

May 09 2011 20:35 GMT

#20

Long Live BW!!!

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