Summary

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Summary

Licensing intellectual property, the practice of selling some but not all of the rights to a given asset, can provide several benefits to a game developer. Licensing proprietary technology is a great way to monetize tools and technologies, though there are very few developers for whom the cost of promoting the technology is repaid in licensing fees. Licensing a game property into other media is generally a more complex affair, usually involving the publisher as a co- licensor . Frequently, the main benefit of a content license is increased visibility for the game property, which improves the odds of sequels and franchising.

The key terms of an intellectual property license

• Definition of the Licensed Property

• Rights Granted

• Definitions of Gross and Net

• Territory and Languages

• Term

• Sequels, Prequels, Re-makes/Ports, Conversions, Sequels

• Approvals

• Quality Assurance

• Marketing Guarantees

• Ownership of Derivative Works

• Reservation of Rights

• Representations and Warranties

• Execution of Further Agreements

• Assignment and Sublicense

change in the context of different licenses, as do the economics. The most important sources of revenue vary from category to category. For example, a children's television show looks to toy and merchandise sales, not advertising or syndication fees, for the biggest part of its profits.

Licensing often creates complex economics. It involves a host of parties, all of whom must be compensated. Whose pocket pays for the compensation is often the subject of pitched battle. There are entertainment agents, merchandise agents, international agents, sub- agents , packaged goods distributors, entertainment distributors , and so on. Intellectual property must be registered and enforced in all jurisdictions in which it is sold or appears, and that can be a major expense. In part as compensation for handling the complexities of administering the property, the licensor is frequently entitled to an administrative fee.

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