|
[In his latest Game Law column for Gamasutra, veteran lawyer Buscaglia discusses how developers should work with publishers on a contract for your game - urging active, intelligent negotiation at all times.]
The proper negotiation of a contract is a process
that is too often ignored by developers, especially those eager to get a deal.
I suspect that part of the reason for this is that the stereotypical game maker
neither likes nor enjoys the process.
The harsh reality is that many, if not
most, publishers are so used to developers being passive about the negotiation
process that they have become arrogant and unwilling to actually engage in a
meaningful negotiation dialog with developers.
Instead, they too often become
rigid and inflexible when it comes to their contract negotiations. And I
suppose this attitude comes in part from, among others, the following factors:
-
An overwhelming
financial advantage held by publishers in the relationship
-
Publisher risk
aversion
-
The perception,
at least, that there are more developers than deals
-
A failure by
developers to have or communicate a long term vision for their studio
-
A lack of
appreciation of the "process" of contract negotiation
-
Developer fear,
rather than appreciation, of being exploited
These factors are certainly not
present in every deal dynamic, nor do they apply to every publisher or
developer.
Moreover, with the vast array of innovative approaches to succeeding
in the industry, even the traditional developer-publisher model is hardly a
standard for the way we do business.
However, there may be some value to just
accepting the stereotyping for the moment and proceeding with the discussion to
see where it takes us and what we can learn in the process... so, shall we
proceed?
Publisher Financial Advantage
Sure, the publisher has the money.
And lots of it. And the developer needs the money to make the game and build
their studio. What possible leverage can the developer have in a situation like
that?
Well if you look at it like that, it may actually make sense to take
whatever deal the publisher offers and just "take your beating like a man."
But, I don't think so.
Step back a little and consider what
it is that the publisher sells... games. And what does the developer have that
the publisher does not?
A game. And all the money in the world is useless to a
publisher if they have no games to sell -- unless they want to open up a
bank.
Oh yes, they want and need your
game. If they didn't, they would not be talking to you. The old Steve Miller
song, "Your Cash Ain't Nothin' but Trash" comes to mind.
So, while
the developer may desperately need to dollars, the publisher needs the games. I
sense the makings of a mutually beneficial business relationship.
|
To have a balanced negociation, both should be aiming for the money. The video game studio really needs to have that approach if it wants to survive.
To survive in this business, you have to be damn sure what you are making will be fun for others to play. The rest will fall into place after that!
Developers should focus on making great games, publishers should focus on marketing those games. A great game will generate money if the marketing is done properly.
Yea, there's got to be a little thought about money, especially when negotiating a deal, but that's one of the reasons dev studios have lawyers for, isn't it?
I'm myself employed by an independent studio, and I know how this badly impacts our salaries.
What I'm afraid of is that the developer is too often treated like a child that only thinks about games. And eventually this unbalance in the negociation is part of the publishing business model.
"And the developer needs the money to make the game and build their studio. What possible leverage can the developer have in a situation like that?"
You then provide your answer to what leverage they have:
"And what does the developer have that the publisher does not?
A game."
I don't think anyone with a fully-functional, sellable game is wringing their hands over negotiating with publishers. If the publisher doesn't have to pay for the development of the game, negotiations are going to be pretty durned easy.
It's like any new product. If it's feasible and possible and prospective investors can see profit, they'll want to make a deal. Just because what you have isn't a reality yet doesn't mean the investor should have all the leverage in the bargain. It'll never be a reality without the co-operation between both parties, and if you look at it like that, money is everywhere, the next big thing isn't.
Perhaps a bit of history to take into consideration: http://en.wikipedia.org/wiki/Gathering_of_Developers
This article scratches the surface of this process in a way that is meaningful to anyone not familiar with it, and I want to extend my thanks to Mr.Buscaglia for writing it.
Cheers!