The big picture: A New York Times report has shed some light on why Electronic Arts is considering changing the name of its FIFA football games. There may be a dispute between EA and FIFA over the value of the name and what EA should be able to do with it.
Last week, EA celebrated the successful release of its latest FIFA game, FIFA 22. In the same post, the company said it is also considering removing the name “FIFA” from the series, which it is licensing from the series. world football governing body of the same name, with exclusive rights. Presumably, that’s because EA’s games represent a lot more football leagues in the world than just FIFA, which hosts the World Cup.
New York Times sources, however, say EA and FIFA disagree on how much EA should pay for the license and how the games company should be allowed to monetize it. In 2013, the license agreement between the two was extended until 2022, and it appears that in negotiations to extend the deal, FIFA is asking EA for more money.
Sources say FIFA wants EA to pay more than double what it currently does for the name, raising the price to over $ 1 billion for each four-year World Cup cycle. FIFA also wants to limit what EA can do with the license.
The Ultimate Team feature of FIFA games, for example, in which customers spend real money to build in-game player rosters, is worth over a billion a year for EA. “This is also the kind of feature FIFA would prefer to block, and perhaps sell in lucrative – and separate – deals,” the NYT article read. FIFA may be trying to explore more revenue streams for itself, while EA may want to expand the number of ways it uses the FIFA license in its games.
Earlier this week, EA filed a trademark with the intellectual property offices of the United Kingdom and the European Union for an “EA Sports FC” – the working title that it could use if it drops the name of the FIFA. EA’s advantage in this negotiation is that FIFA and the World Cup are far from the only football brands it has licensed for FIFA games. It has agreements with many other national and regional teams around the world.
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