Artificial Intelligence (3) Business Law (14) Commercial Law (2) Corporate Law (1) Finance Law (3) Game Industry (6) Intellectual Property (5) M&A (10)
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Gaming IP Beyond the Core Product: Legal and Strategic Considerations
In entertainment landscape, a well-crafted game universe can become more than just an isolated release—it can evolve into multiple spin-offs, sequels, merchandise lines, streaming series, and even real-life events. From the earliest concept stages, developers and publishers can plan for expansions beyond the core game, transforming beloved characters and storylines into multi-platform revenue streams. Below, we explore the legal and strategic underpinnings of taking game IP (intellectual property) into fresh territory, while preserving brand integrity and maximizing business potential.
Exclusivity Agreements: Ensuring Deal Certainty or Stifling Competition?
Exclusivity clauses serve as a cornerstone for serious dealmaking by preventing parallel negotiations and fostering focused dialogue. Yet, they also limit the seller’s ability to solicit competing bids, which can be risky in a dynamic market. Properly drafted exclusivity agreements carefully address duration, remedies, and justifiable carve-outs.
Virtual Currencies and AML: Game Transactions
From cosmetic “skins” and loot boxes to fully tradable tokens, digital assets have revolutionized game monetization. Yet, as players increasingly buy and sell these assets—often on grey or secondary markets—developers confront a regulatory environment where Anti-Money Laundering (AML) rules may apply more broadly than expected.
Addressing Key Commercial Contracts & Change-of-Control Provisions
A company’s value is often tightly bound to its most important commercial contracts—be they supplier deals, license agreements, or critical customer relationships. However, many of these contracts may include “change-of-control” clauses, allowing termination or renegotiation if the business is sold. Failing to secure necessary consents or address these clauses early can undermine the entire transaction’s value. Below, we discuss the significance of these contracts, how to handle potential termination triggers, and strategies to protect the business’s core relationships throughout the M&A process.
Legal and Commercial Risks for AI Developers
From infringement suits over unlicensed training data to liability for AI outputs that mimic real-world brands or creators, generative AI companies face a host of legal and commercial perils. The rapid growth of AI capabilities amplifies these risks for AI developers: the more advanced the system, the more likely it produces outputs so realistic that they could infringe copyright, violate trademarks, or replicate an individual’s style. At the same time, businesses navigating these issues must also address ethical concerns and reputational fallout, especially if outputs contain biased or harmful material.
IP Protection and Publishing Contracts: Game Development
In the gaming world, having a robust legal framework is as vital as crafting smooth gameplay and visually striking art. The creation of a game is a team effort—artists, programmers, designers, publishers, and possibly external contractors—all with distinct rights, responsibilities, and commercial interests. Setting up clear contractual terms and responsibilities from the beginning can head off future disputes and guide the game’s overall trajectory.