Empowering gaming and esports in Wales

Author: Alex Cater

Key Contact: Declan Goodwin 

In recent years, the video game industry has experienced significant growth, now valued at over $250 billion globally, with nearly three billion consumers engaging in virtual adventures worldwide. It should then be no surprise that Wales is looking to take advantage of this growth and make itself more attractive to developers and their affiliates. We take a look at video games in Wales and their increasingly important role in the Welsh business landscape.

Government support and funding

Speaking at an event hosted by Esports Wales and Ygam, Jack Sargeant MS, the Minister for Culture, Skills and Social Partnership, stated that “Gaming (including esports) is a priority sector for the Welsh Government and I’m keen to do all I can to support its growth and gain an international reputation for Wales as a centre for this rapidly growing industry.”

Since 2020, the Welsh Government has demonstrated this commitment by allocating £28 million to support the creative industries, contributing to the employment of over 35,000 people in Wales. Creative Wales, the government’s spearhead organisation, actively seeks out and offers funding to support production, games, and animation development companies based in Wales. The organisation also showcases Welsh talent at an international level, such as at the Game Developers Conference in San Francisco.

Notable success stories include: Wales Interactive, a Penarth-based studio that gained international acclaim with its gothic horror game, Maid of Sker; and the arrival of Rocket Science Group Cardiff in 2023, which has been involved in high-profile projects such as Fall Guys and has worked with developers of hit game Fortnite.

Challenges and the future

Despite the industry’s growth in Wales, challenges remain. The global gaming market has shrunk due to the decline in sales post-pandemic and tougher financial conditions, leading to significant layoffs from industry giants like Activision and Epic Games. However, these factors have spurred the formation of smaller indie studios, with many developers transitioning from larger firms to start their own companies – which Wales will be hoping to entice. 

As such, developing a home-grown workforce will become an increasing priority for the sector in Wales. Initiatives like The Games Developer Foundry Wales, funded through the Creative Skills Fund, offer boot camp-style courses in key disciplines such as coding and self-publishing. Even now, Welsh universities are expanding their offerings of undergraduate courses in Computer Games Design with access to modern tools like Unreal Engine, preparing students for careers in game design. 

Start-ups in Wales will need to navigate complex IP landscapes to protect their new creations. Preparing to address issues related to copyright, trademarks, and patents is essential for maintaining competitive advantages and surviving early growing pains in a field dominated by much larger companies.

Finally, AI has become nearly inescapable and presents exciting new opportunities within game development. Its use may increase efficiency and help cut costs, but developers should consider questions such as: who takes liability for its misuse; who really owns the output of the technology; and how can they ensure compliance with emerging regulations – not just for AI but for data protection as well.

A blossoming creative future

The gaming industry in Wales is on the up, driven by government support, a growing number of successful companies, and a focus on talent development. While challenges may emerge, we consider it likely that the sector will continue to grow as Wales nurtures and supports its blossoming creative sector.

We can help your gaming business navigate the legal landscape in Wales and beyond. Drop us a line to find out how we can help your business thrive.

The UK Government launches a consultation on a text-and-data mining copyright exception

Key Contact: Declan Goodwin

As artificial intelligence continues to revolutionise countless sectors, there are tensions between the rights of content creators and the ambitions of AI developers. At the heart of this conflict lies the use of copyrighted works for AI training and the legal framework governing text-and-data mining (TDM), now to be explored in a government consultation.

The battle between IP owners and AI developers

Content on the internet is often used to train AI systems to create new content or improve machine learning models. However, rightsholders contend that this use often occurs without proper compensation or acknowledgment, potentially undermining their economic and creative interests.

On the other hand, AI developers argue that access to vast datasets, including copyrighted material, is crucial for innovation. Restricting this access, they claim, could stifle technological progress and diminish the global competitiveness of AI research and development.

The tension between these perspectives has led to a critical policy discussion: how can the rights of copyright holders be balanced with the need to foster AI innovation?

UK Government’s proposed solution

The UK Government has  launched a consultation to explore new frameworks for text-and-data mining. The proposed approach aims to align the UK more closely with the European Union’s copyright laws while attempting to accommodate the needs of AI developers.

Under the government’s proposed TDM exception, copyrighted works could be used for AI training by default unless the copyright holder explicitly opts out. This approach marks a shift from the current framework and seeks to strike a balance between accessibility and control.

What would this look like?

If implemented, the TDM exception would allow AI developers to mine datasets, including those containing copyrighted material, without seeking prior permission. This would significantly reduce barriers for AI researchers and developers, enabling faster progress and more innovative outcomes.

For copyright holders, the system would establish a mechanism for reserving their rights. Instead of requiring proactive consent for TDM, they would need to take specific steps to opt out and prevent their works from being included in datasets used for AI training.

By adopting a similar approach to the EU, the UK hopes to create a more consistent regulatory landscape while fostering innovation within the AI sector.

The consultation explains how the default permission and opt-out process could work, as well as the differing rules that could apply to commercial and non-commercial use.

Visit here for full details on the consultation and how to respond.

For advice on exploiting and protecting your IP portfolio, contact our Intellectual Property team.

Acuity Law Reveals Role In £1.13 Million Seed Funding For London-Based Healthtech, HealthKey

Acuity Law has advised HealthKey,  a London-based healthtech that aims to transform how healthcare is paid for, in its £1.13 million seed funding round.

Acuity acted for HealthKey in the funding round, in which Aviva Ventures led an investment consortium including Ascension, Oxford Capital and Cur8 Capital.

HealthKey, which provides easy access to affordable, specialised health services, will use this substantial investment to expand and enhance its platform, as well as grow the number of vetted health providers included on it. At the moment, these include companies providing neurodiversity care, LGBTQ+ wellbeing, pain management, fertility, addiction and more.

London-based Acuity Law partner Andrew McGlashan said: “We are delighted to have supported HealthKey in securing this substantial seed funding. HealthKey’s innovative healthcare platform is an important tool for improving access to preventative healthcare, and we are very pleased to be able to support the company as it grows and expands its services.”

Co-founder and CEO David Joerring said: “Andrew and the rest of the team at Acuity have been an incredible support in reaching this next phase of growth at HealthKey. We look forward to working with Acuity as we continue to change the way healthcare is paid for and widen access to health-related information and life-improving services so that people can be proactive about their health.”

Start-Ups Need Time Out Too…

We explore 5 reasons why start-up founders and small business owners fear taking some time out… and why they shouldn’t.

If this sounds like you, read on…

Key Contact: Tom Saunderson

When you’re a start-up or small business owner, letting go of the reins can be difficult – even for a well-deserved break or vacation. No one wants to be the founder whose interim CEO crashed the company or the HR director who missed an employment tribunal deadline while they were on annual leave.

Equally, taking some time out, even infrequently, is essential for your wellbeing: your business needs the best you, after all.

“Sometimes I think it’s quite similar being a parent to being an entrepreneur. Even when you’re away from your child, you’re talking about and thinking about your child. If the business is your baby – and founders put blood and sweat and tears in – then switching off, is incredibly difficult,” says Andrew McGlashan, Corporate partner at Acuity Law.

“But,” he adds, “that’s a highway to burnout.”

So, what are the worries preventing small or micro-business leaders from enjoying a week or two offline?

1. You have concerns over business continuity

Top of the list is simply that business doesn’t stop just because you’ve got an appointment by the pool. Clients and employees still need to be attended to, deadlines need to be met, and someone needs to make sure things are ticking over.

2. You’re mid-investment round

If you’re a start-up business leader, an investment round and a holiday just don’t mix. Not only are you central to the daily running of the business, but you’re now juggling involve multiple presentations, emails and calls with investors as well. And the investment round can run for months.

3. You’re worried about looking uncommitted to the business

The investors could take a dim view of an absent CEO and any seeming lack of commitment to the business could shake their confidence.

4. Some things just need director sign-off

For some things, only a director will do. A company director has legal and fiduciary duties that other employees do not, and delegating certain responsibilities could be considered negligent, or a dereliction of duty.

5. You have a skills gap

Perhaps your number two is great at marketing. But can they handle HR? They’re a whizz with a balance sheet. But can they reassure a client? In a small enterprise, your stand-in might not have an identical set of skills and qualifications.

Nevertheless, the fact is that no one should be irreplaceable. If you have a few staff members and you still feel as though the business can’t cope without you, you should consider whether you need to structure your operations and resources more effectively.

Top tips for keeping the ship (and your mental health) afloat

1. Choose your number two (and three and four…)

You’ll need to delegate, and you’ll naturally choose a number two. Don’t be afraid to use them and tell key stakeholders who to contact while you are out of the office, but don’t leave everything to one person.

“The chances are your number two is already busy doubling up. If they become sick or something unexpected happens, you don’t want to have put all your eggs in one basket,” warns Claire Knowles, Employment partner at Acuity Law.

Consider what issues are likely to come up and spread them across the business – leaving the oversight to your number two, but not all the responsibility.

2. Make sure your stand-ins are properly trained

Ideally, your stand-ins will be trained and experienced. If there is no one competent within the business, consider using a mentor from outside the business – take a look at your contacts. But above all, make sure that if you need support for regulated areas – such as legal or financial matters – you have sourced professionals with the right training, qualifications, accreditations and insurance. A high-quality law firm or firm of outsourced financial experts can really take a load off your mind for the most crucial matters – keeping you protected (and relaxed).

3. Leave clear instructions

It’s essential to leave unambiguous and comprehensive instructions to those you are handing over to. Make sure your handover instructions don’t simply include information about the last thing that happened – but the last few steps leading up to it. Those you have delegated to need to understand context and background, and not face having to handle issues blind.

4. Plan clearly for the big decisions/business-critical events

Compile a clear list differentiating that which should be handled at home and the bigger decisions that require escalation to the founder/business leader – so that those you have delegated to are in no doubt of any areas that are beyond their remit.

Then make sure people know how to get hold of you. But also manage expectations about the timeliness of your response. Ideally taking a break would mean you were completely zoning out, but some people choose to block out an hour in the morning and an hour in the evening to check in on their business, logging off completely for the rest of the day. However, you also need to manage expectations about how contactable you intend to be, to avoid any unnecessary delays in decision-making.

“There’s no point in someone waiting on an email from you if you know you’re going to be up Mount Kilimanjaro,” says Claire Knowles.  

And, if you’re taking business devices away with you, be careful to avoid falling foul of data protection laws by taking computers and mobile phones outside the EU.

Taking the downtime you need is vital, and will keep productive in your business for the long term. Help is available and, with planning, you really can put your feet up.

For more information about legal support for your small or start-up business, drop Acuity Law a line.

Top 3 Tips For Start-Ups

Our Acuity Start-Ups team picks out three top tips for start-up founders to consider when launching, growing and scaling their business.

Author: Andrew McGlashan

Key Contact: Tom Saunderson

1. Be proactive, not reactive

Start-ups often originate in the ideas-driven realm of academia. On entering the business world, however, there are many red flags and legal traps waiting for an unsuspecting entrepreneur to fall into. It’s hard to know what you don’t know, so be proactive. Investigate. It’s much easier to scope out potential issues in a short call before committing to a decision, than to unpick complicated missteps later on.   

2. Legal advice is not a one-size-fits-all subject

It’s tempting to re-use documents borrowed from other companies to save time and cost. But a document prepared for one company won’t necessarily cover all the areas your unique business requires – particularly if your enterprise is founded on innovative technology. Many founders run afoul of data protection and GDPR issues, for example. Be careful to make sure your documentation fits your business and doesn’t leave you exposed.

3. Don’t give away too much equity too soon

A major part of the investment process is having that conversation about what is a fair equity split or dilution during funding rounds. If an early-stage investor takes too big a stake, this will limit later investment appeal. Even if an interested investor could be a great source of revenue or support, giving away a hefty chunk of equity at seed or pre-seed stage could eventually constrain your options. Fortunately, information that sets out ranges for a fair equity split at different points along the start-up journey is available. Always do your research or get advice before signing away a portion of your company.    

At Acuity Law, our Start-Ups team is experienced in supporting early-stage businesses throughout the start-up lifecycle – from founders and shareholders agreements, investment rounds, early-stage employee and incentive schemes, EMIs, IP and data protection to commercial terms and conditions, and more. The team also has a wide network of investors, professional advisors and service providers that they are happy to share in order to help any start-up grow to the next level.

What’s more, our suite of custom-built products and services are designed for fast-growing businesses.

For more information about how we can help your start-up, or on any Acuity products and services, get in touch.