Video Game Law: Everything You Need to Know about Legal and Business Issues in the Game Industry

275 Pages·2018·7.69 MB·English

by  S. Gregory Boyd

Video Game Law
Everything You Need to Know About Legal and
Business Issues in the Game Industry

Video Game Law
Everything You Need to Know About Legal and
Business Issues in the Game Industry
By
S. Gregory Boyd, Brian Pyne, and Sean F. Kane
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2019 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-1-138-05849-1 (Hardback)
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to pub-
lish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the
consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in
this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright
material has not been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any
form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming,
and recording, or in any information storage or retrieval system, without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copy-
right.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400.
CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been
granted a photocopy license by the CCC, a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification
and explanation without intent to infringe.
Library of Congress Cataloging‑in‑Publication Data
Names: Boyd, S. Gregory, author. | Pyne, Brian, author. | Kane, Sean F.,
author.
Title: Video game law : everything you need to know about legal and business
issues in the game industry / Stephen Gregory Boyd, Brian Pyne, Sean F.
Kane.
Description: Boca Raton : Taylor & Francis, 2019.
Identifiers: LCCN 2018006067 | ISBN 9781138058491 (hardback : alk. paper)
Subjects: LCSH: Video games industry. | Video games industry--Law and
legislation. | Video games--Marketing.
Classification: LCC HD9993.E452 B69 2019 | DDC 794.8068/1--dc23
LC record available at https://lccn.loc.gov/2018006067
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
Contents Contents
Greg:
To Stephanie, you built a 50-ton stone wall with me over three
years, and our life together every day. You make the cozy.
Brian:
To my awesome wife, Regina, my loving parents,
Nadeen and Jim, and my illiterate dog, Sam.
Sean:
To Jennifer, Pierce, and Marlena, for their love and endless support
throughout the writing of this book and also within the rest of my life.

Contents
Foreword, xiii
Acknowledgments, xvii
Author, xix
Chapter 1 ▪ Introduction: Getting Started in the Game Industry 1
THE HISTORICAL IMPORTANCE OF THE GAME INDUSTRY 1
GAMES: WHERE DO YOU FIT IN? 2
DEVELOP CONCRETE SKILLS AND INDUSTRY KNOWLEDGE 2
STARTING A GAME COMPANY: LOOK BEFORE YOU LEAP 3
STARTING A CAREER IN GAMES 3
NOTE 6
Chapter 2 ▪ How to Make a Bad Licensed Game: A Tried and True
Recipe for Disaster 7
BACKGROUND: E.T., THE EXTRA-TERRESTRIAL 8
RULE 1: TREAT THE GAME LIKE A MARKETING PRODUCT INSTEAD
OF A GAME 8
RULE 2: PICK DEVELOPERS/EXECUTIVES WITH A LONG HISTORY OF
FAILURE OR MEDIOCRITY 9
RULE 3: LET SOMEONE IN MARKETING OR IT MANAGE THE
GAME DEVELOPMENT, INSTEAD OF HIRING A COMPETENT GAME
PRODUCTION LIAISON 10
RULE 4: CHOOSE THE DEVELOPER BASED ON A POWERPOINT
PRESENTATION 10
RULE 5: MICROMANAGE DEVELOPMENT 11
RULE 6: USE MINIMUM GUARANTEES TO PROTECT OUR DOWNSIDE 11
RULE 7: TIE A LOT OF SPECIFIC MILESTONES TO PAYMENT 13
CONCLUSION 15
vii
viii ◾ Contents
WHY IT WILL NEVER WORK 16
NOTES 17
Chapter 3 ▪ Intellectual Property in the Game Industry 19
THE IMPORTANCE OF INTELLECTUAL PROPERTY 19
COPYRIGHT 20
TRADE SECRET 30
TRADEMARK 34
PATENTS 39
MORAL RIGHTS 48
IP STRATEGY 101 49
NOTES 52
Chapter 4 ▪ Negotiating Key Game Agreements 57
WHAT DOES IT REALLY MEAN TO “NEGOTIATE”? 57
STRATEGY AND PLANNING: WALKING AWAY 57
EMOTIONAL POSITIONING 58
DIAGNOSING A PROBLEM 58
GOOD VERSUS BAD BUSINESS DEVELOPMENT 59
INTELLECTUAL PROPERTY, TERM, TERMINATION, INDEMNITY, PRICE,
PAYMENT, NET REVENUE 59
KEY POINTS IN THE PUBLISHER AGREEMENT 65
CODE OWNERSHIP IS A TRAP 70
CONCLUSION 75
NOTES 75
Chapter 5 ▪ Game Industry Contracts 77
DEVELOPMENT AGREEMENT 77
MIDDLEWARE LICENSE 89
END‑USER LICENSE AGREEMENT 96
TERMS OF SERVICE 103
BOILERPLATE 109
Chapter 6 ▪ Privacy and Data Security in the Game Industry 121
THE ONE THING WE KNOW ABOUT PRIVACY AND DATA SECURITY IS
THAT WE HAVE NEITHER 121
DATA SECURITY: PHYSICAL, ADMINISTRATIVE, AND TECHNOLOGICAL
MEASURES 122
Contents   ◾   ix
CREATION OF A PRIVACY AND DATA SECURITY PROGRAM 122
WHAT DOES THE PRIVACY AND DATA SECURITY GROUP DO? 123
REVIEWING AND UPDATING THE PRIVACY NOTICE (PRIVACY POLICY) 123
DATA CLASSIFICATION 124
ASSIGNING DATA ATTRIBUTES 126
AUDITING THE GAME COMPANY’S DATA COLLECTION, USE, AND
STORAGE PRACTICES 127
VENDOR MANAGEMENT, INCLUDING VENDOR DATA AUDITS 127
SETTING INTERNAL POLICIES REGARDING EMPLOYEE INFORMATION 128
CREATION OF POLICIES REGARDING CONFIDENTIAL BUSINESS
INFORMATION, INCLUDING COMPANY AND PLAYER FINANCIAL
INFORMATION 128
REVIEWING MARKETING COMMUNICATIONS ISSUES AND PLAYER
INFORMATION USAGE 129
REVIEW OF IT INFRASTRUCTURE, PATCHING, AND APPLICATION
SECURITY MANAGEMENT 129
RESPONDING TO DATA INCIDENTS AND DATA BREACHES 129
A WORD ON COPPA COMPLIANCE 131
THE LARGEST BARRIER TO A PRIVACY AND DATA SECURITY PROGRAM 132
COMMON POLITICAL AND PSYCHOLOGICAL BARRIERS TO
IMPLEMENTATION 132
OVERCOMING POLITICAL AND PSYCHOLOGICAL RESISTANCE 133
SUMMARY 134
NOTES 135
Chapter 7 ▪ Free Money!: Making Use of Video Game Tax Incentives 137
ALABAMA 139
ARKANSAS 140
COLORADO 141
CONNECTICUT 142
GEORGIA 143
HAWAII 144
LOUISIANA 145
MAINE 146
MISSISSIPPI 147
NEVADA 148
NEW MEXICO 149