Top 10 game dev legal mistakes (in 20 minutes)

Jas PurewalRezzed, 12 March 2015

What we’ll discuss

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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

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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

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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?

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E: jas@purewalandpartners.com

W: www.purewalandpartners.com

T: @gamerlaw

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