In 2018, the esports industry experienced remarkable growth. Poised to become the next multibillion-dollar industry, the esports industry has become a part of mainstream sports. For example, the League of Legends World Championships attracted almost 100 million unique viewers for the finals. In comparison, the 2018 Super Bowl saw viewership numbers of 103 million. According to a major sports news network, more than 50 colleges now have varsity esports programs. Esports revenue grew to $865 million in 2018, according to Newzoo, a global leader in games and esports analysis, and Newzoo projects that the global esports market will exceed $1.6 billion by 2021.
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
In Part 1, we discussed how, despite widespread usage, termination in the event of bankruptcy clauses (“ipso facto” clauses) are generally unenforceable pursuant to the bankruptcy code. In this second part, we discuss why these clauses are still prevalent in commercial transactions and the exceptions that allow for enforceability in certain situations.
Why Do Ipso Facto Clauses Remain in Most Contracts?
Practically all commercial transactions, including licenses, services agreements, and supply agreements, contain a provision that triggers termination rights, without notice, to a party whenever the other party files for bankruptcy or experiences other insolvency-related event. In Part 1 of a two-part series, we discuss how the commonly used termination-on-insolvency clauses are generally unenforceable despite their widespread use.
Robotic process automation (RPA) is here and companies at the forefront of the adoption of this technology are reaping a variety of benefits.
What Is RPA?
As discussed in a previous Tech & Sourcing @Morgan Lewis blog post, RPA offers a multitude of benefits, from speed and scalability of process execution to cost savings, to freeing up employees to focus on aspects of their jobs that are intrinsically “human” in nature.
As companies continue to improve the cyber defenses of their computer systems operating key enterprise and national infrastructure, one area that presents unique challenges is the supply chain. A single asset may depend on multiple vendors around the world, some of whom may only produce a single component or piece of software, but any of which can introduce critical vulnerabilities. Please join us for a one-hour webinar to discuss best practices in supply chain cybersecurity to mitigate these risks.
Russia has amended its main laws governing the internet to allow the government to restrict access to the internet and to control internet traffic in emergency situations.
Federal Law No. 90-FZ of 1 May 2019 introduced a set of amendments to the Federal Law on Communications and the Federal Law on Information, Information Technologies and on Protection of Information (the Amendments). The Amendments are colloquially referred to as the “sovereign runet law” or the “law on the secured internet.”
The audit section in a services agreement contains the provisions that specify a party’s right to access and review another party’s information in order to determine such party’s compliance with the agreement. Depending on the scope of audit rights, the audit section can range from a single paragraph to an entire exhibit to the contract.
Many considerations go into drafting appropriate audit rights, including the types of services that the customer is receiving, and the industry in which the customer’s business operates. In many cases, the customer is the auditing party and the service provider is the audited party, but there are situations where the roles will be reversed. Below is an overview of several key issues to consider when drafting audit rights for services agreements.
China introduced a new Foreign Investment Law on March 15, which, among other things, aims to encourage cross-border technological cooperation. In this LawFlash, Shanghai partner Todd Liao discusses related amendments to various Chinese regulations that affect technology transfer deals between foreign technology owners and Chinese licensees.
Join Morgan Lewis at our Philadelphia office on April 11 for a discussion on hot topics impacting services contracts in the digital economy. Morgan Lewis labor and employment partner Sarah Bouchard, litigation partner Greg Parks, together with technology, outsourcing, and commercial contracts partners Barbara Melby and Michael Pillion, and associates Christopher Archer and Katherine O’Keefe will speak at the event.
Topics will include:
- Ethical considerations for lawyers working in a digital world
- Common issues to consider when using vendor cloud agreements
- Industry updates
- Contracting for automation solutions
A networking reception will follow the discussions. We hope you can join us!