Business

Founders’ Agreements 101

Many budding entrepreneurs know that starting a successful venture requires creating a legal entity and drafting the associated paperwork, but those documents leave many questions unanswered: What role will each founder play in the new business? How will smaller operational decisions, like whether to sign a contract, be made? Can founders “moonlight” and work other …

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Six Legal Mistakes That Indie Developers Make

“It’s hard being an indie game developer” is an understatement. This is especially true for developers embarking on the indie dev journey for the first time, whether on their own or through a newly formed studio. In addition to juggling the demands of game development and publishing, indie developers must now worry about accounting, marketing, …

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Marketing and Promotion in Game Publishing: Who Controls What?

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 …

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The Developer-Publisher Relationship: What Developers Are Signing Up For

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 …

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How New U.S. Tariffs Could Reshape the Video‑Game Supply Chain

On April 5, 2025, the President of the United States announced that the United States will impose a minimum 10% baseline tariff on all goods imported from around the world, with many countries subject to higher rates. This announcement sent shockwaves through many economic sectors, causing a large amount of concern over supply chain costs, …

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What is Convertible Note Overhang?

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 …

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Recoupable Expenses: Hidden Costs That Can Eat Video Game Profits

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. …

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Lessons to Learn from the FTC Complaint Against Cognosphere and Genshin Impact – Part II: COPPA

As mentioned in Part I of the this three part blog post on the FTC’s complaint against HoYoverse and Genshin Impact, COPPA applies to sites and services that are either directed toward children under the age of 13 or have actual knowledge that children 13 are providing information online. In Count I of the complaint, …

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Convertible Notes vs SAFEs

Convertible notes and SAFEs (Simple Agreements for Future Equity) are two common instruments used by startups to raise early-stage capital. While they share similarities, they also have distinct features that may make one more suitable than the other depending on the situation. Here’s a quick comparison to help understand the key differences and why a …

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