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"Famous Last Words"

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DISCLAIMER: This column is intended for general educational and entertainment purposes and is not legal advice. Every situation is unique. Anyone entering into a contract should have a lawyer who can provide counsel.

 

** Hope to see you at the annual GDC 2007 legal and business tutorial on Tuesday, March 6th: "Dealmaking for Developers 2007: Challenges for Growing an Independent Studio". Note to California lawyers -- the tutorial is approved by the California State Bar for six hours of MCLE credit! **

 


by Jim Charne
Attorney at Law

Happy Anniversary to Us (December 2006)

Dear Readers:

Five years ago this month, in December 2001, I began writing a monthly column for igda.org called “Famous Last Words.”

The idea was to provide developer perspective to contract negotiations that were, and still are, largely dictated by the superior bargaining position, resources, and experience of game publishers.

Along the way, we have looked at many issues from the developer perspective, made attempts to deconstruct contract terms, offered negotiating strategies, and identified ways to help both sides, not just developers, get what they really need from dev agreements. The IGDA has graciously maintained a full archive of columns, offered free, on this site.

In addition to these columns, the IGDA has sponsored three releases of the Contract Walk-Through, a collaborative volunteer effort of lawyers who work in the games industry. Each release of the Walk-Through offers essays that look at specific contract clauses and issues in greater depth than is possible in a monthly column. It has come to my attention that both the Walk-Through and selected columns are used as course materials in games industry educational programs.

All of this flows from my belief that contract negotiation in the games business does not have to be a scorched earth, take-no-prisoners process.

By taking a step back and considering the needs of developers who are trying to build their own businesses, publishers strengthen their own hand.

So what conclusions have I reached after writing this column every month for five years?

It is in the interests of both game developers and publishers to focus on the long term viability of the software games industry. Publishers can do themselves a huge favor by giving better deals to developers. This is because the critical factors in assuring long term viability are the development, maturing, fair treatment, competitive compensation, and resulting enthusiastic availability of top level talent to create games.

Bad or oppressive deals drive talent out of the business. Game development is a hard slog (I've gotten in trouble in the past for saying that; but it's true!). The hours are long, work conditions not always optimal, and job satisfaction can be low. Unless money, resources, and expectations can be adjusted so that young talent can grow and flourish in a positive atmosphere, and the rewards flowing to great developers are equal to the rewards flowing to great film makers or television talent, our industry may never build the next generation of top creative and technical talent. And those people are the dreamers who will create the great games for future generation platforms.

I'm very proud to be active in the games industry, and thank the IGDA for offering me a forum in which to express my views. If our industry can find a way to fairly reward talent, showcase creativity, and respect basic quality of life standards, I have great confidence in our future together.


 

Is there language in your contract that has you scratching your head? Found something confusing or worse? Submit a question to Jim for developer-oriented analysis in this Famous Last Words column (IGDA members only).

 

Jim's Bio

Jim Charne practices law in Santa Monica, CA (www.charnelaw.com) where he represents developers, designers, and other clients in the games industry. Jim was the proud recipient of an IGDA M.V.P. Award at GDC 2006, is chair of the annual GDC legal and business tutorial, and a member of the Advisory Board of G.A.N.G. From 1998 to 2001, Jim served as President of the Academy of Interactive Arts and Sciences.

© 2006 Jim Charne. All rights reserved.