1. Do I need to hire a lawyer?
Always seeking counsel about what you sign is a good way to protect your business and your Intellectual Property. To put it simply: Contracts are binding. You don't need to hire a lawyer if you are familiar with all of the wording in a proposed contract. However, if there is any doubt about what you are about to sign, then you should seek advice from a professional.
2. Lawyers are a large expense and it significantly increases the cost for my project. Can’t I just wait and engage a lawyer for my second game when I have more money?
You could, but the first contract you sign may have clauses in it that give away some rights for the sequel. At the same time, if you choose not to sign distribution contracts for that first game, you won't be able to secure the distribution necessary to achieve those so-called revenues.
3. What is the difference between an agent and a lawyer? Do I need a lawyer even if I have an agent?
It depends on what the agent’s roll and expertise. Just because an agent has contacts in the industry and can get you distribution, it doesn't mean that the agent is well versed in contract law.
4. Do I need a lawyer with game experience?
No. A good lawyer should have the ability to look at any contract and assess how it addresses a particular license or grant of license in return for royalties. That baseline analysis should not require any game experience. It's the duty of the Developer to understand the business and make decisions based upon the lawyer’s advice.
5. How much should I pay to have someone look at my contract? Should I pay an hourly rate or a fixed rate?
That will always vary. A more important question is this: How experienced is your attorney? More than often than not, you get what you pay for.
6. What if I would like to enter into a contract with a foreign company? Do I need legal advice in from someone in that market?
Not necessarily. It often depends on the governing law and jurisdiction (for example, whether the Governing Law is in China or California). Even so, most licensing contracts cover very basic and standard items.
7. Should I get Errors and Omissions insurance for my company?
Put it this way: How much do you stand to lose if you get sued? Just as insurance is much more important to the Lamborghini driver than it is to the guy in the ’78 Chevette, so too does E&O insurance increase in importance as you business grows and your assets increase.
8. If I am working with a large company which has already entered into contracts with many other developers, do I still need a lawyer to review the contract? Or can I trust that if other developers have signed their contract, it must be OK?
I don’t want to sound like your dad, but: If everyone else jumps off a bridge, will you? Other businesses make decisions based on what they feel is appropriate for them. And those decisions may not apply or be relevant to your business or circumstance. It’s quite possible that other Developers are willing to take on risk that you cannot afford.
