Leveling Up Legal Know-How for Game Developers – FAQs with a Video Game Lawyer

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Leveling Up Legal Know-How for Game Developers – FAQs with a Video Game Lawyer

Creating a video game is a mix of fun, grit, and a good dose of creativity. But to bring your game
to life and keep it safe in the world of IP, contracts, and publishers, it’s essential to understand
the legal side. We sat down with a seasoned video game lawyer to tackle some of the big
questions that developers ask about protecting their projects. Here’s everything you need to
know, from incorporating your studio to negotiating your first publishing deal.

1. What does a video game lawyer do differently from any other lawyer?

Answer: Think of a video game lawyer as a mix between a business lawyer, IP lawyer, and tech
enthusiast. They’re not just handling standard legal stuff—they know the gaming industry inside
and out. This includes the ins and outs of protecting in-game content, dealing with publishers,
understanding online player dynamics, and knowing where gaming meets tech trends like VR
and AI. Video game lawyers are also familiar with the fast-moving world of digital copyright and
how to protect IP in games, which can save studios from a lot of headaches (and expenses)
down the road.

So, while a business lawyer might handle your contracts or set up a corporation, a video game
lawyer is there to make sure the specifics of your game’s IP, branding, and partnerships are
legally rock-solid.

2. What are the advantages of incorporating my video game studio?

Answer: Incorporating your game studio is like adding a layer of armor around your personal
assets. Here’s the rundown:

  • IP Ownership: You can assign all created IP including the game to the corporation,
    which goes a long way in keeping things organized and complying with third-party
    agreements.
  • Protection from Liability: If something goes wrong with the business, your personal
    assets (think: house, car) aren’t on the line.
  • Tax Perks: Incorporated businesses get access to tax benefits that a sole proprietor or
    partnership wouldn’t.
  • Credibility Boost: Let’s face it—publishers, investors, and partners may take you more
    seriously if your studio is incorporated.
  • Easy Access to Funding: Being incorporated makes it simpler to get investors on
    board and organize your finances.
    Incorporating is a smart way to establish a clear boundary between you and the business,
    making it easier to grow without exposing yourself personally to risk.

3. What kind of things in my game are protected by copyright?

Answer: Copyright protects the “creative” stuff you put into your game, and here’s a look at
what that means:
The Story and Dialogue: Got an epic storyline or some iconic dialogue? That’s
copyrightable.

  • Visuals and Graphics: Your game’s unique look, including character designs,
    backgrounds, and overall art style, can be protected.
  • Music and Sound Design: Any original music, sound effects, or audio created
    specifically for the game.
  • Code: Your unique source code also falls under copyright.
    However, gameplay mechanics, rules, and generic concepts aren’t copyright-protected. So,
    while your story and characters are yours, ideas like “a platformer where you collect coins”
    aren’t. If protecting gameplay mechanics is a priority, you might need to look into patents (but
    that’s a whole other conversation).

4. What kind of things can I trademark?

  • Answer: Trademarks cover the elements that make your game stand out to fans and players in
    the marketplace. Here are some examples:
  • Game Title: This helps ensure that no one else in the gaming world tries to publish a
    similar game with the same or confusingly similar name.
  • Logo: Your game’s logo or your studio’s logo can be trademarked to keep branding
    safe.
  • Character Names and Catchphrases: Trademarking iconic characters or catchphrases
    is another way to safeguard your brand.
  • Studio Name: If you plan on building up a solid reputation as a studio, trademarking the
    name makes sure no one else can use it.
    Trademarking these elements helps keep the identity of your game intact and prevents brand
    confusion.

5. What are some ways I can protect my video game IP on a limited budget?

Answer: Game development isn’t cheap, and IP protection can feel like an added expense, but
there are ways to protect your work without breaking the bank:

  • Register Copyrights Selectively: Copyright registration is affordable, and starting with
    your most critical assets—like code, visuals, and storyline—can go a long way.
  • Start with Key Trademarks: If budget is a concern, prioritize the game title or studio
    name, which are usually the most important trademarks for branding.
  • Use NDAs: Make sure anyone you’re working with (artists, coders, contractors) signs a Non-Disclosure Agreement. It’s a quick way to keep your ideas from being shared or reused.
  • Basic Contracts: Even a simple contract can clarify IP ownership with collaborators and freelancers, so you don’t run into “who owns what” disputes later.

By focusing on essential IP protections and getting creative with contracts, you can effectively
safeguard your game without overspending.

6. Can I use ChatGPT to make my contracts?
Answer: While tools like ChatGPT are impressive, there’s a difference between an AI-
generated draft and a legally airtight contract. ChatGPT can help create a basic template, but
it’s best to view these drafts as a starting point rather than the final product. Game development
contracts, especially those covering IP ownership, royalties, and liability, often need specific
legal language that a bot might miss.

A video game lawyer can help customize and finalize contracts to fit your project, minimizing
potential risks and misunderstandings. In short, AI tools can help get you started, but having a
pro review the final draft is the safest bet.

7. Is it okay to use generative AI to create assets in my video game?

Answer: Generative AI can be great for brainstorming assets, but using it directly in games
raises some unique legal questions:

  • Ownership of Assets: Some AI platforms retain partial ownership over the generated
    assets, which can lead to complications.
  • Copyright Concerns: AI models are trained on massive datasets that may include
    copyrighted works, meaning AI-generated art might unintentionally resemble something
    else.
  • License Terms: Some generative AI platforms restrict commercial use, so you need to
    double-check whether you have the right to sell what you create with their tools.

Using AI to spark ideas or assist with rough drafts is fine, but if you’re planning to monetize
assets directly, consult a lawyer to avoid any unintended legal troubles.

8. Can I negotiate a publishing agreement even if this is my first game?
Answer: Definitely. A first game doesn’t mean you have to take whatever terms are offered.
Many publishers understand that fair terms help them build long-term relationships with
developers, so they’re open to reasonable negotiations. You can often negotiate on IP
ownership, revenue splits, and distribution rights.

Going into the conversation with a game lawyer who knows industry norms can help you avoid
getting locked into unfavorable terms. It’s always easier to negotiate up front rather than try to
adjust terms once the game is launched.

9. What things should I look out for in a publishing agreement?

Answer: Publishing agreements can be tricky, so here are the key areas to double-check:

  • Revenue Split: Make sure you know how sales will be divided, especially when
    considering deductions for marketing or distribution costs.
  • IP Ownership: Some publishers want a stake in your IP—think carefully before giving it
    up.
  • Creative Control: Some deals involve creative oversight from the publisher. If you want
    freedom, make sure you’re not signing away too much control.
  • Termination Clauses: Know what happens if either side wants to end the deal.
  • Distribution Rights: Be clear on where and how your game will be distributed, as this
    can impact your potential reach and income.

These are the “big ticket” items that can shape your experience with the publisher and affect
your game’s future.

10. What are some important legal agreements or documents developers should know
about?

Answer: Here’s a roundup of key documents every developer should have in their legal toolkit:

  • Publishing Agreement: Sets out terms with a publisher, covering revenue, IP rights,
    and responsibilities.
  • Development Agreement: Covers terms with collaborators or contractors to ensure
    everyone’s on the same page.
  • Licensing Agreement: Allows you to use third-party assets or tools legally in your
    game.
  • End User License Agreement (EULA): Outlines player usage rights and limits liability
    for your game.
  • Privacy Policy: Required if your game collects user data, ensuring you’re compliant
    with laws like the European Union’s General Data Protection Regulation (GDPR)
    California Consumer Privacy Act (CCPA) (California’s privacy regulations). Even though
    you may be based in Canada, you may have an audience base in the EU or US, so you
    have to make sure you’re compliant with their privacy laws.

These documents form the backbone of your game’s legal structure, helping protect your IP,
manage business relationships, and keep your players informed. Many publishers or platforms such as Meta require you to have compliant privacy policies in place before you can launch your
game with them.

Conclusion
Navigating the legal side of game development can seem overwhelming, especially with all the
creative and technical aspects already on your plate. But having a solid grasp on IP protection,
contracts, and publishing terms gives you a real advantage—it’s what keeps your hard work
safe, ensures you’re fairly compensated, and lets you focus on what you do best: making great
games.

A video game lawyer brings invaluable insights specific to the industry and knows how to protect
your project from potential risks that non-specialized legal advice might overlook. Whether it’s
setting up the right structure for your studio, negotiating a publishing deal, or managing player
data, a lawyer who understands the nuances of the law and the gaming world can be a game-
changer. Investing in legal guidance early on can save you from costly issues down the road
and give you peace of mind, so you can focus on growing your studio and building the games
you’ve dreamed of creating

Learn more about working with a video game lawyer.