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Top 10 game developer legal mistakes

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Jas Purewal

Interactive entertainment lawyer Jas Purewal explains the top ten most frequently encountered legal mistakes by games developers, why they happen and what to do about them.

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Top 10 game dev legal mistakes (in 20 minutes) Jas Purewal Rezzed, 12 March 2015
What we’ll discuss 2 1. The top 10 game dev legal mistakes 2. Why you shouldn’t do them 3. How not to do them 4. Seriously, don’t 5. Bye!
About me 3 I’m a video games and digital entertainment lawyer. 10 years in the City of London and Silicon Valley, then founded a digital entertainment law firm, Purewal & Partners, in London in 2014. We help games studios and video games businesses with things like: contracts negotiation, intellectual property, employment, regulation, financing and dispute resolution. I also write www.gamerlaw.co.uk. Not me
Clients 4
1: Contracts are a waste of time Why devs might think so: Contracts are complicated and are full of things only lawyers might understand. Why that’s a mistake: ? A contract is just a document explaining what both sides get. ? It’s your best chance to make sure you get what your studio needs but doesn’t give too much away. Tip: use contracts whenever possible. Get a working understanding of them. Ask other devs and lawyers about them.
2: IP law is evil Why devs might think so: “IP law is for big evil publishers to stomp on little studios”. Why that’s a mistake: ? Legally, a game is made of IP rights. ? Sure, it can be abused, but it’s your best shot at protecting your business in all sorts of ways. Tip: get a working understanding of what IP law in games actually is, rather than just what the Internet thinks it is.
3: T&Cs are pointless Why devs might think so: “Everyone just ticks the box and ignores it.” Why that’s a mistake: ? T&Cs are your way to tell your users what’s OK and what’s not. ? It helps protect your business and communicate with your users. ? Still legally effective if not fully read! Tip: there is no earthly reason not to have T&Cs. They don’t have to be stuffed full of legalese, but they should exist.
4: Data privacy: not a dev problem Why devs might think so: “Our games don’t collect on any data!” Why that’s a mistake: ? All studios do. ? Regulators in UK/US/EU are actively looking at games studios’ use of data. Tip: get a privacy policy and cookie policy. Register with local data privacy regulator (if applicable). “Privacy by design”.
5: Founders never fall out Why devs might think so: “I built a studio with my mates, we’re cool.” Why that’s a mistake: ? People fall out. It happens. ? The worst thing you can do is build a company without setting some ground rules down in writing first. Tip: get a good shareholders agreement. Think about shareholdings properly (and unemotionally). Keep this under review as the company grows.
6: Employees, contractors, so what? Why devs might think so: “Employment law is for big studios.” Why that’s a mistake: ? Contractors own IP in their work. Contractors could be employees in fact. ? Employment law raises serious tax and admin issues – not to be ignored. Tip: get good template employment and contractor agreements. Employment law applies to even the smallest of indies.
7: Age ratings are irrelevant Why devs might think so: “I don’t use them, so who cares?” Why that’s a mistake: ? Formal age ratings are still needed on console and PC physical releases. ? They are a real issue in important markets like Germany and Australia. ? Parents and regulators still rely on them. Tip: know when you actually need them and when you don’t.
8: Tax breaks aren’t worth it Why devs might think so: “It’s just loads of paperwork for nothing”. Why that’s a mistake: ? Tax breaks themselves effectively subsidise development (e.g. UK GTR: >20% of qualifying dev costs). ? They could be used to unlock wider equity/project funding. Tip: have a chat with your accountant and lawyer – is there free money on the table?
9: F2P isn’t regulated Why devs might think so: “Apple hasn’t told us to change anything”. Why that’s a mistake: ? Not just a platform problem – it’s yours. ? F2P regulation, especially in UK/EU, is a growing issue for devs. ? You can’t just create any F2P mechanic you like – there are rules in place now. Tip: get an understanding of UK F2P principles. Talk to a games lawyer during dev.
10: Lawyers can’t help game devs Why devs might think so: “Expensive and they don’t get games.” Why that’s a mistake: ? Find the right lawyer. Purewal & Partners, Osborne Clarke, Sheridans, Harbottles – all good UK/EU law firms. ? A good lawyer is also a business advisor and a walking contact list. Tip: find a games lawyer and build a long- term relationship with him/her.
Thanks! AMA? 15 ........................................................ E: jas@purewalandpartners.com W: www.purewalandpartners.com T: @gamerlaw ........................................................

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Top 10 game developer legal mistakes

  • 1. Top 10 game dev legal mistakes (in 20 minutes) Jas Purewal Rezzed, 12 March 2015
  • 2. What we’ll discuss 2 1. The top 10 game dev legal mistakes 2. Why you shouldn’t do them 3. How not to do them 4. Seriously, don’t 5. Bye!
  • 3. About me 3 I’m a video games and digital entertainment lawyer. 10 years in the City of London and Silicon Valley, then founded a digital entertainment law firm, Purewal & Partners, in London in 2014. We help games studios and video games businesses with things like: contracts negotiation, intellectual property, employment, regulation, financing and dispute resolution. I also write www.gamerlaw.co.uk. Not me
  • 5. 1: Contracts are a waste of time Why devs might think so: Contracts are complicated and are full of things only lawyers might understand. Why that’s a mistake: ? A contract is just a document explaining what both sides get. ? It’s your best chance to make sure you get what your studio needs but doesn’t give too much away. Tip: use contracts whenever possible. Get a working understanding of them. Ask other devs and lawyers about them.
  • 6. 2: IP law is evil Why devs might think so: “IP law is for big evil publishers to stomp on little studios”. Why that’s a mistake: ? Legally, a game is made of IP rights. ? Sure, it can be abused, but it’s your best shot at protecting your business in all sorts of ways. Tip: get a working understanding of what IP law in games actually is, rather than just what the Internet thinks it is.
  • 7. 3: T&Cs are pointless Why devs might think so: “Everyone just ticks the box and ignores it.” Why that’s a mistake: ? T&Cs are your way to tell your users what’s OK and what’s not. ? It helps protect your business and communicate with your users. ? Still legally effective if not fully read! Tip: there is no earthly reason not to have T&Cs. They don’t have to be stuffed full of legalese, but they should exist.
  • 8. 4: Data privacy: not a dev problem Why devs might think so: “Our games don’t collect on any data!” Why that’s a mistake: ? All studios do. ? Regulators in UK/US/EU are actively looking at games studios’ use of data. Tip: get a privacy policy and cookie policy. Register with local data privacy regulator (if applicable). “Privacy by design”.
  • 9. 5: Founders never fall out Why devs might think so: “I built a studio with my mates, we’re cool.” Why that’s a mistake: ? People fall out. It happens. ? The worst thing you can do is build a company without setting some ground rules down in writing first. Tip: get a good shareholders agreement. Think about shareholdings properly (and unemotionally). Keep this under review as the company grows.
  • 10. 6: Employees, contractors, so what? Why devs might think so: “Employment law is for big studios.” Why that’s a mistake: ? Contractors own IP in their work. Contractors could be employees in fact. ? Employment law raises serious tax and admin issues – not to be ignored. Tip: get good template employment and contractor agreements. Employment law applies to even the smallest of indies.
  • 11. 7: Age ratings are irrelevant Why devs might think so: “I don’t use them, so who cares?” Why that’s a mistake: ? Formal age ratings are still needed on console and PC physical releases. ? They are a real issue in important markets like Germany and Australia. ? Parents and regulators still rely on them. Tip: know when you actually need them and when you don’t.
  • 12. 8: Tax breaks aren’t worth it Why devs might think so: “It’s just loads of paperwork for nothing”. Why that’s a mistake: ? Tax breaks themselves effectively subsidise development (e.g. UK GTR: >20% of qualifying dev costs). ? They could be used to unlock wider equity/project funding. Tip: have a chat with your accountant and lawyer – is there free money on the table?
  • 13. 9: F2P isn’t regulated Why devs might think so: “Apple hasn’t told us to change anything”. Why that’s a mistake: ? Not just a platform problem – it’s yours. ? F2P regulation, especially in UK/EU, is a growing issue for devs. ? You can’t just create any F2P mechanic you like – there are rules in place now. Tip: get an understanding of UK F2P principles. Talk to a games lawyer during dev.
  • 14. 10: Lawyers can’t help game devs Why devs might think so: “Expensive and they don’t get games.” Why that’s a mistake: ? Find the right lawyer. Purewal & Partners, Osborne Clarke, Sheridans, Harbottles – all good UK/EU law firms. ? A good lawyer is also a business advisor and a walking contact list. Tip: find a games lawyer and build a long- term relationship with him/her.
  • 15. Thanks! AMA? 15 ........................................................ E: jas@purewalandpartners.com W: www.purewalandpartners.com T: @gamerlaw ........................................................