Canadian growth leader Activate Games takes gaming experiences to a whole new level with IP

What does it take to develop a new concept for gaming experiences and grow it into a global company from the ground up in the middle of a world-wide pandemic?  

A healthy dose of grit and resilience combined with a commitment to research and development of original and inventive technology and environments, testing and refinement based on gamer experiences, and a robust strategy for intellectual property (IP).  Topped off with creative use of social media to build a dedicated following of gaming fans eager to try the experience, with great anticipation, once the pandemic lifted.

That’s exactly the formula co-founders Adam and Megan Schmidt followed to grow their company Activate Games and earn recognition as one of Canada’s Top Growing Companies by the Globe and Mail for the second year in a row, with revenue growth of more than 3,500% over three years. 

From humble beginnings and just three locations at the start of 2019, Activate now has more than 55 locations in six Canadian provinces, 17 U.S. states, two U.K. cities, France and Dubai today. About half of these are corporately owned; the rest are managed by partners who license the concept from Activate and agreements are in place for nine more countries. The plan is to surpass 200 locations in the decade ahead and Schmidt’s dream of one day getting to 400. 

Amidst this explosive growth, the Schmidts brought on executive support to help them scale operations and build processes, teams and logistical infrastructure. That included bringing on senior in-house legal counsel Dahlia Pervez, who in turn hired on the team at Marks & Clerk to assist them in reviewing and shoring up Activate’s intellectual property strategy, in Canada and globally.

“We had some of the basics in place with our trademarks, patents and corporate licensing agreements but had just scratched the surface with IP. I knew we needed to do more to protect our innovations and manage competitive market risks – especially as we expanded beyond North America. We needed an IP firm with a Canadian perspective and global experience to guide us and bring it all together in one comprehensive strategy and plan” says Pervez.

Canadian partner and head of Trademarks and Copyright, Catherine (Cat) Lovrics remembers when she got the call from Dahlia at Activate. “The first thing we did was visit one of their locations in Toronto – we went together as a team with lawyers and agents from our Trademarks, Copyrights, Patents, Design and Litigation groups. Then we got our game on – and we instantly realized that Activate Games was literally a game changer!” says Lovrics. 

The team immediately saw a myriad of opportunities to help Activate protect, leverage and commercialize IP. “As much fun as the games were, we were even more excited to help Activate protect the wide variety of IP that went into their immersive games. We knew immediately that Activate offered something truly unique and original, worthy of IP protection” says Paul Horbal, Head of Computer and Electrical Patents.

Marks & Clerk’s team then got to work together with Dahlia and the Schmidts, to co-create an IP strategy and plan that would support them in the next phase of their growth. That included several IP education sessions and deep dives into all areas of IP – from trademarks and copyrights to trade secrets, patents and designs, and IP aspects of commercial agreements including employee contracts, licensing and franchising.  The team also supported regulatory and marketing matters, including with respect to novel loyalty programs, tournaments, and other consumer friendly programs and terms.  

The team provided insights and recommended strategies to enforce and protect IP rights in Canada and internationally with expert guidance from Kamleh Nicola, Co-Head of Dispute Resolution and Litigation. “Dealing with potential infringement and competitive risk swiftly and efficiently, while balancing reputational risks, was especially important for Activate in-line with their rapid growth and expansion to new markets” says Nicola. 

In addition to Cat, Paul and Kamleh, Marks & Clerk’s multidisciplinary IP team also includes Wilfred So, Kimberley Frith-Delisser, and Helen Ren, along with a dedicated team of IP clerks. 

Together, M&C’s team was able to understand Activate’s unique IP needs from a Canadian perspective and with an international lens. “Layering on access to our global team and wider IP connections means we are able to offer Activate tailored expertise and advice on IP issues globally, including Canada, the US, Europe and Asia” says Lovrics.  

The results and impact for Activate have been impressive and the team at Marks & Clerk are thrilled to see Activate recognized for their explosive growth and business results. “There is nothing more rewarding than helping innovative creators protect what they worked so hard to develop, and we have aimed to do just that for Adam, Megan and the incredible Activate team” adds Horbal.

On behalf of everyone at Marks & Clerk, congratulations to the entire team at Activate Games; we look forward to supporting you with your IP, and your continued growth trajectory!

“We had opened a concept that no one had seen before, and we had a year of customer testing when we had to shut down,” Megan says. “We had the chance to ask, ‘What is working and what is not?’” Then, they made a key decision: “We could either stay on the down low and grow eventually, or we could give ’er and see what happened,” Adam says. “We gave ’er.”

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