Chapter 3.4: Effective Development Contracts

Overview

Thomas H. Buscaglia, Esquire

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The development contract is a written agreement between a developer and a publisher that establishes the rights, duties, and obligations of the publisher and developer to each other. Development contracts cover the various issues involved in the developer/publisher relationship, including the funding, production, marketing, distribution, ownership, and ongoing obligations of the parties. This article looks at the many clauses of the usual development agreement and examines in detail some of the more important provisions in these contracts. We conclude by discussing strategies that might help a developer get the most they can out of a contract, based on their relative bargaining power.