It may look like fun and games, but China’s livestreaming industry has quickly become a multibillion-dollar business filled with everything from self-made stars giving beauty advice to real-time gamers in multiple locations squaring off in the virtual realm.
As the big bucks roll in, lawyers are also finding a lucrative place as legal eagles in a complex universe where disputes can occur in many places.
That less-glitzy side of the business was the subject of a white paper published by a Beijing court on Thursday detailing the many places disputes can occur, while also emphasizing the importance of signing proper contracts to lessen the likelihood of such clashes.
Livestreaming can be broken down into three basic activities: Gaming, shopping, and entertainment shows hosted by individuals who can sometimes take on celebrity status. Among those, hosted shows are easily the largest source of disputes, accounting for two-thirds of cases heard, according to the court in Beijing’s Chaoyang District.
Typical disputes involve such things as revenue sharing between show creators and the platforms they use, fees paid by the former to the latter, and refund requests from consumers dissatisfied with virtual currencies they purchase from channel operators.
A recent report by China’s internet regulator showed the country had 560 million users engaged in livestreaming through March this year, up 41% from the previous year and accounting for nearly two-thirds of China’s internet users. Livestream gamers and shoppers totaled about 260 million users each, while users associated with livestreaming shows totaled 207 million, the report said.
Related: Xiaomi CEO Lei Jun Makes $30 Million in Sales in Livestreaming Debut
Contact reporter Yang Ge (geyang@caixin.com)
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