Game development often starts with passion before profit. Many early projects rely on informal funding from friends or family. That support can make a dream possible, but it is also subject to some legal and regulatory requirements. And, it can create tension if the project takes off or fails. A handshake deal that seemed fine …
When Friends and Family Fund a Game: Keeping It Legal and Clean Read More »
Choosing the right legal entity is one of the earliest and most important decisions for a new game studio. The choice often comes down to two common structures: the limited liability company (LLC) or the corporation. Each offers benefits and drawbacks that can shape how a studio grows, raises money, and protects its founders. LLC: …
LLC vs Corporation for a Game Studio: What Every Developer Should Know Read More »
Game investment deals often borrow from venture capital but some carry unique terms shaped by creative risk and uncertain returns. Sophisticated investors in this space know that the success rate for new titles and studios is low, but the upside can be significant. Developers, in turn, look for deals that provide breathing room to create …
What Terms Are “Normal” in Game Investment Deals? Read More »
Many early-stage game studios look for ways to manage costs while moving projects forward. The idea of using unpaid interns often comes up during these conversations. It might seem like a win for both the unpaid intern and the studio, but the legal reality around unpaid internships is strict, and mistakes can become expensive. In …
Marketing and promotion play a vital role in a game’s success, but control over these efforts can be a significant point of negotiation in publishing agreements. Developers and publishers often have different priorities when it comes to messaging, branding, and budget allocation, making it essential to establish clear terms in the contract. In most publishing …
Marketing and Promotion in Game Publishing: Who Controls What? Read More »
When a game developer signs a publishing agreement, a business relationship is established that extends beyond merely getting a game to market. Understanding the nature of this relationship is crucial in ensuring that a deal aligns with long-term goals. The Role of a Publisher A game publisher provides services that developers may not have the …
The Developer-Publisher Relationship: What Developers Are Signing Up For Read More »
Convertible notes and Simple Agreements for Future Equity (SAFEs) are widely used by startups to raise early-stage capital. However, where the terms of those agreements are overly generous to the early-stage investor, those agreements can create complexities in future financing rounds, particularly in the form of “liquidation preference overhang”. What is Liquidation Overhang? Liquidation overhang …
Recoupable expenses are a critical aspect of game publishing agreements, often reducing the revenue a developer ultimately receives. These costs, deducted from game sales before royalties are paid, can significantly impact profitability. Understanding what qualifies as a recoupable expense and how to negotiate favorable terms is essential for developers (and publishers) looking to maximize earnings. …
Recoupable Expenses: Hidden Costs That Can Eat Video Game Profits Read More »
In a game publishing agreement, the ownership and licensing of intellectual property (IP) are among the most critical terms. Understanding how rights are allocated between developers and publishers can prevent disputes and ensure long-term business success. Typically, developers retain ownership of the core game and its underlying assets. This includes the game code, which forms …
Who Owns What? Understanding Intellectual Property Rights in Game Publishing Deals Read More »
Royalties are a central part of any game publishing agreement, determining how revenue is shared between developers and publishers. Understanding how royalties are structured can help developers make informed decisions and avoid unexpected financial pitfalls. The Basics of Royalties in Game Publishing Royalties are payments to the owner of a piece of intellectual property, like …
Show Me the Money: How Royalties Work in Game Publishing Agreements Read More »