As a video game development studio, having good contracts in place is crucial for your success. You need contracts that lay the foundation for working together, protect intellectual property (IP) and ensure a smooth project execution. As a development studio, you need to understand the important points to consider when entering into contracts with publishers and other studios. In this post, we will explore those key considerations and provide you with the insight to not only protect yourself but also pave the way for a prosperous relationship with your partners.

Key considerations in game development contracts

Through our experiences, we consider these as key considerations in game development contracts:

  • defining the scope of work clearly;
  • describing the IP rights and licensing;
  • describing confidentiality requirements;
  • clearly defined payment terms.

Defining your scope of work clearly

Nobody wants an agreement they don’t understand.  Your scope of work in your game development contract must clearly outline the milestones, timelines to finish the milestones and when each party must deliver on their work.  This will help both parties understand what they need to do and leave little room for ambiguity.

Dealing with IP rights and licensing in game development contracts

There is a significant amount of IP in video games. This includes IP such as music, artwork and source code. Importantly, you need to understand what types of licenses you deal with in each type of IP. Publishers will normally give you their existing IP to build on. Your game development contracts must deal with who owns the IP in the end and what IP will remain yours.

Dealing with confidential information

You want to ensure that you protect your confidential information. This includes footage of your game still in development. Your game development contract must clearly define what you consider confidential information.  Your agreement will also describe what happens when someone discloses confidential information  and what the parties must do to avoid any damages. We recently saw screenshots of GTA 6 leak on the internet. You can suffer serious harm if you ever find yourself in a position where someone leaks footage of your unfinished game.

Have clearly defined payment terms

You can’t work for free. You need to have clearly defined payment terms. Importantly, your contract will lay out how payment will work, when you receive your money and details on other forms of compensation like royalties. You want to clearly define these terms to benefit both parties.

Actions to take next

The only thing worse than a broken game, is a broken game development contract. You want to ensure that your contracts are robust and tailored to your needs. Don’t let badly written contracts prevent you from levelling up your contract game. Here are some actions you can take next:

  • manage your relationships with publishers and other parties by asking us to draft your contracts.
  • ensure your contracts meet your requirements by asking us to review it and provide our feedback.
  • navigate complex legal issues by consulting with a specialist.