Famous Last Words December 2011

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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.

Jim Charne, Attorney at Law

December, 2011
Famous Last Words
By Jim Charne, Attorney at Law

Maintaining Confidentiality in the Social Media World

Dear Readers:

Happy holidays to everyone!  Merry Christmas.  Happy Chanukah.  Happy New Year.  And Happy Anniversary to Famous Last Words.  We started up in December, 2001.  This month marks our tenth anniversary (check the archive)!  Glad you’re here with us!

No question this month – just a cautionary tale.

Every time a developer signs a game dev deal, it contains language that requires strict confidentiality in connection with the project.

That language may go so far as to prohibit disclosure of anything relating to the project, even the fact that the developer is working with the publisher, without the express written consent of the publisher in every instance!

Failure to comply is taken seriously – it may be regarded as a material breach.

We understand the need for confidentiality, and the desire of game publishers to control release of information about their upcoming games.

After all, game publishers invest multi-millions into certain titles.  The timing and flow of information is an important element of marketing the game.  

This means the importance for strict confidentiality must be impressed and reinforced regularly at every level and to every person working in the studio.

Casual talk at lunch or after hours can lead to breaches of security.  And the general availability of game rumor sites and social media like Facebook or Twitter, can spread news (or rumors) around the world in a heartbeat!

It seems like every day we hear about some celebrity or athlete who says something they regret on Twitter.  We hope no game dev studio person would make that mistake.

An important part of every employment paperwork package, when new members join the studio, is an employee agreement containing the confidentiality requirements of the job.

Reinforcing that expectation on a regular basis is good policy for every game developer.

Knowing the game developer maintains and reinforces the need for strict confidentiality makes the developer more professional in the eyes of its publisher clients.

I do not believe it is going too far to liken development studio security to security maintained during the Manhattan Project, the effort to develop the atomic bomb during World War II.

Keeping the lid on outgoing information is everyone’s job.    

Placing a sign like the one accompanying this article on the door exiting from the studio is a good reminder to keep game dev info inside the studio!

In this day and age, we have to presume that no one outside your development team can keep a secret.

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Jim Charne practices law in Santa Monica, CA (www.charnelaw.com) where he represents developers, designers, composers and other clients in the games industry.  Jim has been a frequent speaker at GDC and Practicing Law Institute games industry programs, is active in IGDA from whom he received a coveted “MVP” Award at GDC 2006, and is a member of the Advisory Board of G.A.N.G.  On October 19, 2011, Jim will chair a one day program in San Francisco, offered by the Practicing Law Institute, titled: “Representing the Games Industry Client 2011.  Jim served as President of the Academy of Interactive Arts and Sciences from 1998 to 2001.

Is there language in your contract that has you scratching your head?  Found something confusing or worse?  Send it to “Famous Last Words” for developer-oriented analysis.

Famous Last Words is intended for general educational and entertainment purposes and is not legal advice.  Every situation and circumstance is unique.  Anyone entering into a software-related contract should have an experienced lawyer who can provide counsel throughout the process.

©2011 Jim Charne.  All rights reserved.