Terms and Conditions of FIDE 2016 Candidates Tournament Online Broadcasting (“Terms”) Last updated on 8 March 2016 1. This Terms shall govern your use of this website materials related to FIDE 2016 Candidates Tournament. If you agree to all the terms and conditions set forth herein, please check the “I agree” box below the registration form. If you do not agree with any of the terms and conditions set out herewith you must not use this website. 2. For the purposes of this Terms the term “Broadcasting” shall mean any type of broadcasting, including but not limited to audio, video, textual streaming (which includes textual move-by move streaming of chess games) of the FIDE 2016 Candidates Tournament. 3. For the purposes of this Terms the term “Broadcasting Materials” shall mean any kind of information including, but not limited to video, photo, audio and/or textual recordings related to the Candidates Tournament and published on this website. 4. This site is operated by World Chess Events Limited, a BVI Company, having its registered office at Tropic Isle Building, P. O. Box 3423, Road Town, Tortola, British Virgin Islands (“Company”), which is the official organizer of the FIDE 2016 Candidates Tournament and together with its affiliates owns all the rights in the website and in the materials on the website. 5. You may not copy, reproduce, distribute, publish, enter into a database, display, perform, modify, create derivative works, transmit, or in any way exploit any part of Broadcasting Materials, except that you may access and display materials and all other content displayed on the website for non-commercial, personal, entertainment use on a single computer or device only. Without limiting the generality of the foregoing you may not in any way redistribute the Broadcasting Materials and/or Broadcasting transmission, nor sell it or offer for sale. 6. Company does not accept any liability for any loss or damage (direct, indirect, punitive, actual, consequential, incidental, special, exemplary or otherwise) resulting from any use of or inability to use the website, Broadcasting or Broadcasting Materials. 7. BY USING THIS WEBSITE YOU EXPRESSLY AGREE THAT THE INFORMATION ABOUT CHESS MOVES OF THE FIDE 2016 CANDIDATES TOURNAMENT GAMES IS EXPENSIVE TO GATHER AND TIME-SENSITIVE AND THAT UNCONTROLLED COPYING OF THIS INFORMATION DURING OR SHORTLY AFTER THE END OF RESPECTIVE CHESS GAME MAY REDUCE THE INCENTIVE OF THE COMPANY TO ORGANIZE SIMILAR EVENTS IN THE FUTURE. YOU FURTHER AGREE NOT TO PUBLISH ANY INFORMATION CONCERNING THE CHESS MOVES OF THE CANDIDATES TOURNAMENT 2016 CHESS GAMES DURING SUCH GAMES AND WITHIN TWO HOURS AFTER THEIR END. After that period you can use the PGN file of the game notation published on the website without any further restrictions. 8. You acknowledge that any breach, threatened or actual, of this Terms will cause irreparable injury to Company, such injury would not be quantifiable in monetary damages, and Company would not have an adequate remedy at law. You therefore agree that Company shall be entitled, in addition to other available remedies, to seek and be awarded an injunction or other appropriate equitable relief from a competent court restraining any breach, threatened or actual, of your obligations under any provision of this Terms. Accordingly, you hereby waive any

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Monday, March 7, 2016 Letter to Chess Media Dear all, As you know, Agon announced on Friday that we will broadcast the moves of the Candidates tournament exclusively on worldchess.com and will not allow (and will take legal action) against those who will broadcast the moves without authorization. I am getting in touch personally to let you know what’s going on and what to expect in the future.

I. THE REASON

I spoke with many of managers of chess sites before going forward with this and the most common reaction was: “I understand why you are doing this and think it’s right personally, but as a manager of a platform which broadcasts chess games, I am very disappointed”. That makes sense: the sites were getting the moves for free while FIDE was organizing events, usually, without corporate sponsors who would demand exclusivity (Also, FIDE was doing that while getting terrible PR for not having corporate sponsors). After a year of talking to sponsors every day, I am reporting to you that sponsors are prepared to consider chess, but only on four conditions: — The cycle should be sustainable and long-term and dates should be set in advance (check) — The cities where major events take place should be global cities with major press and VIP program (check) — Chess should be on TV and in the media (working on this) — Web traffic is substantial (fail)

The last point is the most important to sponsors and commercial partners because it’s the only measurable metric and it was in terrible shape: FIDE events were getting less than 15% of all chess traffic (presumably, because we don’t know actual numbers, they might be even worse). Not only sponsors could not realize value from their sponsorship and organizers could not deliver it, the situation was that the organizers were responsible for enormous costs of putting the event together (the cost of the cycle Agon is responsible for is over $9mln in two years excluding expenses such as salaries), while other companies (i.e. sites) were getting their product for free without any costs.

II. THE SOLUTION

Therefore we have decided to stream the moves and video of the cycle events exclusively on worldchess.com for three reasons: — To be able to offer exclusivity to sponsors and be able to realize investments — To be able to calculate the size of traffic (how many will watch?) — To establish guidelines (legal and structural) for all other chess organizers in case they want to use this model (all legal work is open and free to use).

III. “GOOD for CHESS”

After the announcement, Agon (and me personally) received several angry emails stating that what we are doing is ‘bad for chess’, and continuing to allow unrestricted distribution of moves is good for chess. Well, I personally believe that this is hypocrisy: unrestricted moves are good for websites that generate traffic though it. We are not charging for moves from visitors, everyone are welcome to watch, but visitors mean traffic and sponsorship revenue. ‘Bad for chess’ means ‘Bad for me’. Please don’t get me wrong: I completely understand why restriction of the broadcast is disappointing: sites were used to getting this information for free, and many used live broadcasts as major drivers for traffic and premium subscriptions and PR. But events are associated with huge costs. And it is fair that those who carry the costs are entitled to revenues associated with it. Actually, it would be much better for chess if all sites linked to the official broadcasting site and the organizer would be in the position to monetize traffic and recoup some investment which would lead to the organizer investing more into holding events.

IV. LEGAL EAGLE

We are of course aware of previous failed attempts to copyright moves. We are not doing that. Moves are not under copyright. What is protected is live transmission — something that the law considers as ‘hot news’, something that has been produced at a cost. We will certainly protect this and probably successfully, but this precedent is not only important for me or for Agon: it’s the same for all other organizers who are considering holding major events in the future. (Like chess.com with their Blitz tournament and etc). I personally was involved in organizing lots of

events in the last three years, and I talk to corporate sponsors almost every day, and here is the punchline: if live transmission is not protected, major chess events do not make sense commercially. You probably noticed that over the years, chess industry almost fully exhausted those individuals/ countries/companies that simply gave money to hold events without expecting anything in return. Actual sponsors demand results, and if we expect top level events in media-rich cities, held professionally, this is the only way. Of course, many other things need to happen as well: excellent media coverage, TV-friendly formats, getting stars on board, interesting personalities, technology and etc. But moves are the main asset and has by far the most value.

V. IMMEDIATE FUTURE

We know and value your chess coverage very much and we’ll give you everything to make your coverage interesting and complete even without live transmission: behind the scene-footage, interviews, exclusive access to players, easy embeds of scores and etc. We will also make a page that links to your excellent services (playing zones, education and other projects that you charge money for and what people enjoy). We will also invite you to take part in organization of Grand Prix events (we are slightly improving the format) and the Match in New York. I really hope this makes sense to you and would very much appreciate comments and feedback. Sincerely,
 Ilya