Partner Q&A: Fenwick

We're delighted to announce that Fenwick & West returns as one of this year's partners of the Summit. Fenwick's involvement in the industry began a long time ago, and the firm's games team is a representative of that rare breed whom we call "the elders of the community village": lawyers who, through the decades of experience, have accumulated a wealth of the industry's best practices – so that now all of their clients, old and new, can benefit from this insight.

We spoke to partners Jennifer Stanley and Joseph Schenck about how Fenwick started, and where it's heading these days:

?? Jennifer, Joseph, let me start with a bit of trivia: here's a page from the diary of Trip Hawkins, and what we see marked there is “Fenwick law firm”, responsible for incorporating Electronic Arts. It seems like the relationship between you and video games goes back ages?

– We’ve always been a tech-focused law firm, from the very beginning, dedicated to helping tech companies thrive at every stage of growth. We’re all about the technology. We incorporated Apple, we incorporated EA. Our practice has grown as the footprint of Silicon Valley has evolved beyond Northern California to other tech hubs around the world, and the games industry has been a large part of it almost from the start.

?? What changes have you observed in this period?

– On the one hand, there’s been a lot of changes in the industry – especially in how the games industry has flourished to become a global industry. We’re a US-based law firm, but our practice is now truly global. Even if one of our clients is based in San Francisco and not, say, in Helsinki or in Seoul, their audience is always international, and our focus is worldwide rather than at one particular region.

On the other hand, the fundamental challenge of integrating technology and entertainment remains the same. The specifics change, but the challenges surrounding the company’s lifecycle, from a startup to an IPO, is essentially the same, and this is where our years of experience really help. These days, every company is a tech company, and we are the tech firm, from our inception.

?? How would you define your strongest suit?

– We have experience both in law, and in business. When you work on dozens of industry deals each year, you develop an understanding of what is “normal” and what is “outstanding”, what’s “fair” and what’s “unfair.” Clients benefit from both our legal and business counseling based on years of experience looking around corners and working with the next big thing where the law may not yet be fully established. Bringing innovative and commercially minded solutions to even the most complex matters has been Fenwick’s hallmark in the gaming industry for over 40 years.???

It’s always up to the client on how they choose to act, and what we aim for is arming our clients with information to make better decisions. It can be our opinion on whether the offer is reasonable, or an evaluation of risks for a startup made at its very early stages. In both cases, we deliver the expertise??needed to further the company’s strategic objectives.

?? How big is Fenwick’s games team these days?

– We have about 65 people in the games team.

?? Are they all California-based?

– Not at all. Beyond ???? Silicon Valley, ???? San Francisco and ???? Santa Monica, the team, and others with whom we collaborate, is also based in our ???? Seattle, ???? New York, ???? Washington, D.C. and ???? Shanghai offices.

?? This sounds like a network that grew around the games industry’s needs?

–?Indeed, as a firm we grew together with our clients, so to a large degree our footprint reflects the footprint of the games industry. For example, we opened the DC office when we saw the regulatory issues becoming more and more important for the industry.?

Because of our position in the industry, we have the benefit of being ahead of the curve – and we develop the capacities that we see in demand, so that we already have the specific expertise when our clients need it.

?? What do you do for your games industry clients? Licensing? Litigation? Something else?

– We cover the whole cycle: from the early stages, when startups are only getting funded, to exits like IPO or, say, divestment (for example, we helped spin off Niantic from Google, and later helped the studio on Pokémon Go).

In addition to capital markets, corporate, IP, privacy and cybersecurity, regulatory and litigation, we also handle advertising issues, tax issues, contracts, and investments. We do very well in the M&A space, where we have experience at every stage, working with both small and large companies, whether it’s about the acquisition of content like a standalone game, or a tech deal, or a buyout.

?? And who are your typical clients?

– It’s hard to say what is “typical”, really. We represent pioneering companies in all stages of growth throughout the industry’s global ecosystem— Epic Games, Gearbox, Jam City, Nexon, Niantic, Razer, Riot Games, Supercell, Tencent, Twitch—from cross-border strategic alliances to cutting edge deals. Both tech and games are such creative spaces that most of our clients are unique – and we love that!

?? What, in your opinion, makes your clients recommend the firm to peers?

– When we work on a deal, we strive to offer a balanced view of the situation. For all the billions in the global revenue, the games industry can ultimately comprise a small community, and very often you meet the same people on different sides of the table, in different deals. People move from place to place, but you keep your reputation, and this is often the key to making things run smoothly. We believe that when people trust you; everything becomes so much easier.

Think about a licensing deal, as an example. The IP owner wants to control the integrity of the IP and of course to make a profit. The developer wants to bring to life a own vision of that IP. They negotiate, sometimes very hard… and yet all the while they share the same goal: making that awesome game happen! If that game ships, and does well, we have all done well.

Our goal is not to win every battle no matter the cost. Rather, we see our goal in building a lasting partnership. Therefore quite often we end up working with the client who was on the other side of another deal, because we hope they see the value that we bring to the transaction.

?? If you had a motto on the wall of the games team, what would it say?

–?“We help bring fun to the world!”

?? Talking about the world, which section of your work do you see growing faster than others these days?

– Probably, AI. There’s a lot happening in that space, and we are lucky to already have experience in the area (we represent OpenAI, among other AI clients). This is one of the prime examples of where our tech synergies kick in: we know both the AI and the games industry and can orient our clients at the intersection of both areas.

?? Final question: who’s the best first point of contact at Fenwick? And will you be at GDC?

– It’s us,????? Jennifer Stanley ?and????? Joseph Schenck , and yes, we’re very much looking forward to being at GDC in just a few weeks’ time!?