This week we'll examine the six sides of a game deal: how they're defined, who owns the Intellectual Property, the schedule, money, liability, and other miscellaneous points. More importantly, you'll learn all of this in context with important vocabulary terms used in the game industry and really know, for example, what it means to "escalator" your "back end."
Also, your Team's Lead Writer / Designer receives their Peer Evaluation this week.
The link below is the homework assignment due at the beginning of the next class session.
Homework: Week 8
These links feature the supplemental material that you are responsible for knowing before the first exam (that takes place at the end of Week 9). Be sure to click on every link in this section!
Article: Negotiating Contracts that Protect your Title and Team by Jay Powell
In the game business, as in life, you don't get what you deserve, you get what you negotiate. The purpose of this article is to offer guidelines that will help you negotiate a deal with the publisher of your game. By following these guidelines you will get the publisher committed to your game, and protect your team in the event that something goes seriously wrong.
Article: The "Take It or Leave It" Development Contract by Jim Charne, Attorney at Law
...Recently we made a deal to do a small five month handheld game for a mid-level publisher. When the contract came, it was unbelievably one sided – giving all rights to the publisher and leaving us totally exposed. After reviewing it with our lawyer, we sent back our comments. The response from the publisher lawyer: “take it or leave it – we won't negotiate.” Is this standard?
GOLD MINE - An Actual Game Contract with Legal Commentary: Call of Duty: Finest Hour - The Contract by Tom Buscaglia with Chris Bennett and Dave Sprately
Gamasutra presents an annotated contract between Activision and Spark Unlimited for 2004's console title Call Of Duty: Finest Hour. This is the first time a major game development contract has been disclosed publicly (there was a nasty lawsuit and it ended up in the public record). It is presented here in its entirety with legal commentary. This article will not be on the test, but you should look over some of the annotations made within it; you will find them very illuminating as an adjunct to this week's lesson.
These supplemental links are worth pursuing only if you are seriously interested in working in the game business and want to know about it in the broadest possible sense. This material will not be directly included in the exams, but if you're serious about delving deeply into the subject of game production, here's some more lessons from others who have also "been there."
Article: Negotiating Development Contracts by Alan Behr and Katherine M. Wallace
This article is a very good overview of much of the lecture material this week. It addresses the situation in which a development studio retains the copyright in its game but licenses the publishing and related rights to a game publisher for a specified territory and a specified duration. The publisher, in turn, either publishes the game for play for the PC or for one or more game consoles (a fairly typical deal arrangement).
Article: G.O.D.s 10 Developer Commandments by Scott Miller
Presented here for all developers of the world, courtesy of Gathering of Developers, are guidelines and inside information that may otherwise take you years to learn, and many regrets along the way. Make no mistake, this is inside information your publisher doesn’t want you to know. With this knowledge you’ll be able to negotiate far better publishing agreements that give your company significantly improved revenues, power and value.
Research Article: Contract Walkthrough (2nd edition) by The International Game Developers Association
This free download consists of essay that are meant to educate all developers on game contract issues, so they will be better able to understand and discuss such matters with their lawyers and publishers.
Article: Toward an Alternative to the "Advances, Recoupment, & Royalty" Model for Developers by Jim Charne
Short of a Harry Potter or Black & White, how many developers see royalties for their efforts? Tales of royalties for all but the tiniest handful of games are fast becoming the stuff of urban legend - like crocodiles in the New York City sewer system, or Walt Disney’s cryogenically preserved remains. Is it time to scrap the advance, recoupment, and royalty model for games development?
Article: Intellectual Property Deal Breakers: The 5 Intellectual Property Rights Developers Should Not Bargain Away by Stephen Rubin
Intuitively, the creator is the owner of the game IP. Legally, the picture is far more complicated. This article is a discussion of general principles of contract and intellectual property law. It is intended as a supplement to the author's presentation of the same topic at the 2005 Game Developers Conference.
Article: The Tooth Fairy, Santa Clause, and Royalties for Game Developers by Jim Charne, Attorney at Law
Dear, Jim: My company has been developing console games since 1997. In that time, we've had our share of successes and have been able to keep our team busy with some periods of down time between projects. However, it seems like we never earn royalties on our games. What are we doing wrong?
Article: Rules of the Game: Cutting Cut Scenes (or How to Stay Under 5 CDs and Still Have a Fun Game) by Ben Calica
Lead Artists take note! Used effectively, cut scenes are almost an indispensable part of great game design, but most just don't know how to make the cut in their own cut scenes.
