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Enron Mail |
Dave:
As per my voice mail, I'm planning to set up the conference call for Wednesday morning. I will send the demo to Milbank, Canadian and Japanese counsel for them to review in conjunction with their research for us. From our preliminary advice, I believe that we will need to structure the game similar to the format in the demo to avoid liability in various jurisdictions for violating trademark restrictions on the use of the terms Olympics, Sydney 2000 and the like. We will be able to offer the games to most US residents as well as those European residents for which we received the green light during the Euro2000 research. We should also be able to offer the game to Japanese residents so long as the prize has a value no greater than 100,000 yen. We will not be able to offer the game to residents of Australia or Singapore (see David Minn's e-mail below re Australia). I am waiting for final word on Canada. Leslie ----- Forwarded by Leslie Hansen/HOU/ECT on 08/15/2000 08:32 AM ----- David Minns@ENRON_DEVELOPMENT 08/14/2000 05:14 PM To: Leslie Hansen/HOU/ECT@ECT cc: Alan Aronowitz@ECT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kirsty Hogarth/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EOL Sports Game As per my voicemail If Olympic terms are used we will not be protected by disclaimers. We are talking multiple permits for the various States. I have spoken to our Managing Director and we do not want to invest any more in resources in what would be a huge exercise to get lottery licences for an internet product in each of the States in a matter of days. Leslie Hansen@ECT 15-08-2000 03:10 To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: EOL Sports Game David: 1. If Australian residents are not permitted to play the game and we make clear disclaimers of such and restrict dissemination of marketing materials to exclude Australian residents, can we avoid liability under Australian law? 2. If we try to structure the game so that it complies with Australian law, it appears that we will still be required to seek a permit to offer a game such as this (notwithstanding the Olympics issue) in Australia. Can you talk to your commercial guys to determine how many Australian EOL CPs we currently have and whether it is worth the expenditure of the resources necessary to obtain a permit to make this game available to those CPs. Leslie David Minns@ENRON_DEVELOPMENT 08/13/2000 11:03 PM To: Leslie Hansen@ECT cc: Alan Aronowitz/HOU/ECT@ECT, anne.hung@bakernet.com, jbruvall@cal.stikeman.com, John Viverito/Corp/Enron@Enron, Justin Timothy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, paul.davis@bakernet.com, Dave Samuels/HOU/ECT@ECT, scott.farrell@msj.com.au Subject: Re: EOL Sports Game Leslie we need to talk about this asap. It is irrelevant whether we are charging to play game. The distribution of prizes through chance triggers the requirement for a licence. Generally this would not be a problem but as Mallesons observed the licensing of gambling on the internet is major political issue and we should not expect a permit to be granted at an administrative level. Hence delays should be expected. There is zero chance of us getting approval to use Sydney Olympic names and images. They have already been sold off. The use of the Olympic name etc. is reserved to partners who have tipped in millions. I did a quick check of the net and found that there is already a sweepstakes being run on behalf of these partners. It appears that the sweepstakes includes global partners such as IBM and hence there might be restrictions in other jurisdictions on running a game in competition to it. The legislation is broadly drafted to pick up any use of "Olympic" and related terms. The Act is additional to normal trademark legislation and is designed to stop unauthorised orgainisations associating themselves with Olympics so as to protect the value of sponsorships Attached is an extract from the legislation listing some (but not all) of the terms that can't be used. http://www.olympics.com/eng/sponsors/goodsports.html Leslie Hansen@ECT 12-08-2000 01:54 To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, scottfarrell@msj.com.au cc: Alan Aronowitz/HOU/ECT@ECT, anne.hung@bakernet.com, jbruvall@cal.stikeman.com, John Viverito/Corp/Enron@Enron, Justin Timothy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, paul.davis@bakernet.com, Dave Samuels/HOU/ECT@ECT Subject: Re: EOL Sports Game David and Scott: I certainly appreciate your very prompt feedback on this issue. I need to clarify one important misconception included in Scott's memorandum: The game will be open to all customers on EnronOnline, not just Enron employees. Enron employees will be permitted to participate although there may be restrictions placed on their ability to win prizes. In light of this fact and the information contained in your memorandum, I have several follow up questions: 1. The game is open without entry fee or charge. Does this make a difference under the lottery legislation outlined in the memo or do you believe we will still need to seek a permit? If it will be necessary to obtain a permit, we would like to proceed as quickly as possible in trying to obtain one. 2. With regard to the use of the "Sydney 2000" "Olympics" etc. names and symbols, we would like to proceed as quickly as possible to obtain a license to use the names. It is vital that we obtain the right to use these symbols in the promotion and hosting of this game. 3. Notwithstanding the issues surrounding use of the trademarked names and symbols referring to the Olympics, are there any other restrictions prohibiting the promotion of a game related to the Olympics? Regards, Leslie David Minns@ENRON_DEVELOPMENT 08/10/2000 05:29 PM To: Leslie Hansen/HOU/ECT@ECT cc: jbruvall@cal.stikeman.com@ECT, anne.hung@bakernet.com@ECT, paul.davis@bakernet.com@ECT, John Viverito/Corp/Enron@Enron@ECT, Alan Aronowitz/HOU/ECT@ECT, Justin Timothy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EOL Sports Game Attached is a brief advice I asked outside counsel to prepare. They confirm my understanding that a permit would almost certainly be required. They also raised another obvious concern. There is legislation designed to protect businesses who are not Olympic sponsors cashing on the Olympics. Particularly in New South Wales this legislation is being rigorously enforced to the extent possible by the regulators. David Minns 10-08-2000 11:05 To: Leslie Hansen/HOU/ECT@ECT cc: jbruvall@cal.stikeman.com@ECT, anne.hung@bakernet.com@ECT, paul.davis@bakernet.com@ECT, John Viverito/Corp/Enron@Enron@ECT, Alan Aronowitz/HOU/ECT@ECT, Justin Timothy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EOL Sports Game Whilst it appears to be an excellent marketing strategy the caution displayed in researching the law in various jurisdictions is justified. On what you have told me there are two potential issues. My initial view is that sweepstake may be considered a lottery under New South Wales (the State where Enron is based) gaming laws. If this correct then we will need a license. I should be able to confirm this later today. We will also need to check the other Australian States where we have counterparties. There also significant public debate on internet gambling in Australia. Recently the Federal Government indicated that it would move to regulate the area. The second relates to passing items of value to employees of companies with whom we do business. To be frank I am uncomfortable with any arrangement that could result in this occurring unless we had the informed consent of the employer. Apart from the negative fallout that may result, we are we also need to be mindful that in Australia a number of our counterparties are Government owned utilities. This does raise questions as the possible application of the Foreign and Corrupt Practices Act. On the facts available I could not preclude a circumstance arising that could be viewed as not in compliance with that Act. Leslie some further facts will assist. How will the offer be made - will it just be on the website or will promotional material also be sent? Which Enron entity will be making the offer? Who can "play"? Will it only be the master user or can anyone with a password play? To whom would the prize be given? Would it go to the individual or would the prize be given to the company with no possibility of it being intercepted by the individual? Japan will also have some issues relating to gaming which I am sure Anne at B&M will be able to advise on. Do we need to check on the situation in Singapore? Sorry to throw up all these problems but this proposal does have some real issues - atleast on the facts given in your email. Leslie Hansen@ECT 10-08-2000 05:04 To: jbruvall@cal.stikeman.com, anne.hung@bakernet.com, paul.davis@bakernet.com, David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: John Viverito/Corp/Enron@Enron, Alan Aronowitz/HOU/ECT@ECT Subject: EOL Sports Game As we have discussed either directly or indirectly, EnronOnline is interested in offering an on-line sweepstakes game to its customers. The game will be based upon the Olympic games and is similar in concept to a fantasy football league. A participant selects several countries as its "team" and accumulates points based upon the medals earned by its countries' in the Olympic games. Unlike fantasy football, however, there is no entry fee to win and no other form of payment is required from participants. Prizes (e.g., big screen tv, camcorder) will be awarded based upon highest points accumulated. I have asked each of you to research any prohibitions on such a game in the following jurisdictions: Jim: Canada Anne: Japan David: Australia I need to know if these jurisdictions impose any restrictions on such a game. Can we make the game available to all EnronOnline customers in each of these jurisdictions? What, if any, procedures and/or requirements must we meet in order to offer the game? If we cannot permit certain jurisdictional residents to participate, can we still post the game if we include adequate disclaimers? The game will be launched during the first week of September, so your prompt response will be most appreciated. Thank you in advance for your assistance in this matter. Regards, Leslie Hansen (713) 853-6121
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