Top 10 game dev legal mistakes (in 20 minutes)

Jas PurewalRezzed, 12 March 2015

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What we’ll discuss

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!

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About me

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

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Clients

1: Contracts are a waste of timeWhy 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 evilWhy 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 pointlessWhy 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 problemWhy 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 outWhy 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?

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........................................................E: jas@purewalandpartners.comW: www.purewalandpartners.com

T: @gamerlaw........................................................