Royalties Clarification
by Angus Breck · in Torque Game Engine · 05/27/2001 (12:37 am) · 35 replies
I have a question reguarding the cut of royalties given to development teams who create a game using the V12 source as their foundation. If this has been covered in another thread I apologize. I have looked through all of the catagories and haven't found anything answering my question though, but it's a possability that I may have missed something. Anyhow...
The the way I understand things to be in the gaming industry is as such... A development company finds a publisher to front them the costs of going about creating their game in exchange for intellectual property rights and overall control of the game to be created. In return the developer receives royalties after the game is published and starts selling units. These royalties are (according to gamasutra) somewhere between 10% and 18% going to the developer.
[i]"Products published through the GarageGames download distribution channel will have a 50/50 royalty split. You can raise your royalty rate by contributing to the V12 engine, technology, documentation, tools, or community."[i]
Now upon initial reading of this I thought, "wow, 50% cut, that's quite a bit more than a newbie development company like myself would get from a publisher" but then I started thinking some more. If GG is basically arranging to dish out rights to the engine with Dynamix or whoever it is (Sierra I imagine) then they're probably getting a percentage cut to begin with. The way I figure it, this works out to be a 50% cut of an already small cut of royalties that GG gets to obtain from whoever. That would be something on the order of 50% of perhaps 15%. Not so great when think of making $3 from every $40 title you may eventually sell.
My question is, is that the case? Has GG already negotiated a slice of the V12 royalty pie in order to make this seemingly awesome engine license deal happen? If so, what are the numbers? There's a significant different between making $20 on a $40 title as opposed to $3, and this directly factors into whether or not I want to opt-in and use V12. In short, I'd like to know the whole story on royalties, feel free to include all the legalese as well since this is business and I'm sure all the serious developers out there like myself want to know the straight scoop.
Thanks for your time, sorry about the length of my post... I'm sorta wordy. ;)
The the way I understand things to be in the gaming industry is as such... A development company finds a publisher to front them the costs of going about creating their game in exchange for intellectual property rights and overall control of the game to be created. In return the developer receives royalties after the game is published and starts selling units. These royalties are (according to gamasutra) somewhere between 10% and 18% going to the developer.
[i]"Products published through the GarageGames download distribution channel will have a 50/50 royalty split. You can raise your royalty rate by contributing to the V12 engine, technology, documentation, tools, or community."[i]
Now upon initial reading of this I thought, "wow, 50% cut, that's quite a bit more than a newbie development company like myself would get from a publisher" but then I started thinking some more. If GG is basically arranging to dish out rights to the engine with Dynamix or whoever it is (Sierra I imagine) then they're probably getting a percentage cut to begin with. The way I figure it, this works out to be a 50% cut of an already small cut of royalties that GG gets to obtain from whoever. That would be something on the order of 50% of perhaps 15%. Not so great when think of making $3 from every $40 title you may eventually sell.
My question is, is that the case? Has GG already negotiated a slice of the V12 royalty pie in order to make this seemingly awesome engine license deal happen? If so, what are the numbers? There's a significant different between making $20 on a $40 title as opposed to $3, and this directly factors into whether or not I want to opt-in and use V12. In short, I'd like to know the whole story on royalties, feel free to include all the legalese as well since this is business and I'm sure all the serious developers out there like myself want to know the straight scoop.
Thanks for your time, sorry about the length of my post... I'm sorta wordy. ;)
#2
Do you think that GG (a small company) can buy this license from sierra/Havas in giving them cash?
I don't think so, they want a piece of the pie, and believe me, this is not a small piece!
I am a bit dissapointed that the website doesn't tell us exactly what is going on.
Anyways, time to go back to programming, 'cause that is what it is all about!!
05/27/2001 (2:43 am)
It is more then likely that that is the case.Do you think that GG (a small company) can buy this license from sierra/Havas in giving them cash?
I don't think so, they want a piece of the pie, and believe me, this is not a small piece!
I am a bit dissapointed that the website doesn't tell us exactly what is going on.
Anyways, time to go back to programming, 'cause that is what it is all about!!
#3
What are the royalty rates?
Products published through the GarageGames download distribution channel will have a 50/50 royalty split. You can raise your royalty rate by contributing to the V12 engine, technology, documentation, tools, or community. For games that go to retail box channel: if the game is based on the V12 engine, GarageGames will take 20% of the development fees and royalties you receive from the publisher; if the game is not based on the V12 engine, GarageGames will negotiate on an individual basis for a much lower percentage.
Meaning:
If GG puts the game up for electronic distribution on their site for $20, you get $10 for each copy sold.
If your game is good enough to be published, the standard negotions ensue, and GG takes 20% of the cut that would go to you. Assuming a $50 game at 15%, that leaves $7.5, of which gg takes $1.5 leaving you with $5.
Your confusion comes from the fact that theres two different ways they distribute your game.
05/27/2001 (11:56 am)
It is spelled out in the FAQWhat are the royalty rates?
Products published through the GarageGames download distribution channel will have a 50/50 royalty split. You can raise your royalty rate by contributing to the V12 engine, technology, documentation, tools, or community. For games that go to retail box channel: if the game is based on the V12 engine, GarageGames will take 20% of the development fees and royalties you receive from the publisher; if the game is not based on the V12 engine, GarageGames will negotiate on an individual basis for a much lower percentage.
Meaning:
If GG puts the game up for electronic distribution on their site for $20, you get $10 for each copy sold.
If your game is good enough to be published, the standard negotions ensue, and GG takes 20% of the cut that would go to you. Assuming a $50 game at 15%, that leaves $7.5, of which gg takes $1.5 leaving you with $5.
Your confusion comes from the fact that theres two different ways they distribute your game.
#5
Do GG negotiate with the publisher for you?
If so how are disagreements between the three parties resolved (ie please clarify "the standard negotiations")?
I realise this is probably a stupid question but as indies we are meant to be new to this sort of thing. Oh, and if its in the agreement/FAQ please tell me to shutup and read it again :)
05/28/2001 (3:40 am)
I'm sure this has already been covered but just to be sure...Do GG negotiate with the publisher for you?
If so how are disagreements between the three parties resolved (ie please clarify "the standard negotiations")?
I realise this is probably a stupid question but as indies we are meant to be new to this sort of thing. Oh, and if its in the agreement/FAQ please tell me to shutup and read it again :)
#6
Jeff Tunnell GG
05/28/2001 (11:58 am)
GG would be representing you in negotiations. However, if you would have to agree to any final contract before it would be signed.Jeff Tunnell GG
#7
Anyhow, thanks for the info James and Jeff. Jeff's comments brought to mind another question however. Who sets the price for the games on the GG site? How much room do us developers have to set atypical pricing structures such as (purly hypothetical) $5 for an open beta while we're making incremental updates to the mod and then the remainder of the price (perhaps $30) once the game goes final? Oh and at what point does GG remove a bit of the profits from the sale of a unit to recoup the price of GG doing business? I noticed that the 50/50 split is of the net profits meaning expenses and such are removed. Do the expenses come out of the money before or after you take your 50%? I'm sure GG has to pay for servers and whatnot, employees need stuff like money to, so how do us lowly developers factor into that with our wares? Just curious.
I have another question about licensing that seems to be covered in an old thread but left hanging with Jeff saying "we're thinking about it" or something of that nature. Basically my concern is over the sequel clauses and such wherein GG gets to take my game and turn it into a franchise and I get to make it into a movie (let's all watch the tomb raider movie and see how it flops, then tell me how much movie rights are really worth to a bunch of programmers like myself and my team). I think the thread is dead but I would like to open discussion on the subject back up, let me know if here is the appropriate place or if I should start a new thread or if I should just go get bent. ;-)
05/29/2001 (1:15 am)
Strange, one of my posts disappeared or never made it to the forum... Anyhow, thanks for the info James and Jeff. Jeff's comments brought to mind another question however. Who sets the price for the games on the GG site? How much room do us developers have to set atypical pricing structures such as (purly hypothetical) $5 for an open beta while we're making incremental updates to the mod and then the remainder of the price (perhaps $30) once the game goes final? Oh and at what point does GG remove a bit of the profits from the sale of a unit to recoup the price of GG doing business? I noticed that the 50/50 split is of the net profits meaning expenses and such are removed. Do the expenses come out of the money before or after you take your 50%? I'm sure GG has to pay for servers and whatnot, employees need stuff like money to, so how do us lowly developers factor into that with our wares? Just curious.
I have another question about licensing that seems to be covered in an old thread but left hanging with Jeff saying "we're thinking about it" or something of that nature. Basically my concern is over the sequel clauses and such wherein GG gets to take my game and turn it into a franchise and I get to make it into a movie (let's all watch the tomb raider movie and see how it flops, then tell me how much movie rights are really worth to a bunch of programmers like myself and my team). I think the thread is dead but I would like to open discussion on the subject back up, let me know if here is the appropriate place or if I should start a new thread or if I should just go get bent. ;-)
#8
You get to set the price for your game. If you think it is worth $100, then go for it. I don't think it will sell many units. Realistically, I would like to see most GG games in the $5 to $20 range.
Expenses:
That clause is in the contract in case we do burn on demand CD's, compilation CD's, or other means of distribution that have tangible COGS (Cost Of GoodS). A CD, including packaging and handling, will cost around $2.50, but we would add a little more than that to the price. ESD (downloading) has a tangible COGS due to infrastructure and bandwidth, but we don't know what it is yet. We know it is less than CD COGS. Until we have some data to go on, we will not be deducting any bandwidth costs, so the split will be 50/50 for downloaded games.
First Right Of Refusal:
If a game is published on GarageGames and it becomes a hit, we need the right to publish the next version of that game. As the EULA now stands, we have the right to do so, and we feel we need to continue to have that right. The concession we will make (end this will be reflected in a modified EULA) is that we must offer the developer the right to create the sequel first.
I hope you can understand why we need this clause. If the GarageGames site, platform, and efforts help to create a hit product, or even a product that we feel has a lot pf potential, we need to be able to follow it up. If we can't do this, we just become a stomping ground for the big publishers.
Another reason we need this clause is in the case of a developer abandoning a product for any number of reasons. They may go out of business, get tired of making games, sign with a big publisher, etc. In any case, we need the right to follow up the product.
I hope this clears things up a little.
Jeff Tunnell GG
05/29/2001 (9:29 am)
Pricing:You get to set the price for your game. If you think it is worth $100, then go for it. I don't think it will sell many units. Realistically, I would like to see most GG games in the $5 to $20 range.
Expenses:
That clause is in the contract in case we do burn on demand CD's, compilation CD's, or other means of distribution that have tangible COGS (Cost Of GoodS). A CD, including packaging and handling, will cost around $2.50, but we would add a little more than that to the price. ESD (downloading) has a tangible COGS due to infrastructure and bandwidth, but we don't know what it is yet. We know it is less than CD COGS. Until we have some data to go on, we will not be deducting any bandwidth costs, so the split will be 50/50 for downloaded games.
First Right Of Refusal:
If a game is published on GarageGames and it becomes a hit, we need the right to publish the next version of that game. As the EULA now stands, we have the right to do so, and we feel we need to continue to have that right. The concession we will make (end this will be reflected in a modified EULA) is that we must offer the developer the right to create the sequel first.
I hope you can understand why we need this clause. If the GarageGames site, platform, and efforts help to create a hit product, or even a product that we feel has a lot pf potential, we need to be able to follow it up. If we can't do this, we just become a stomping ground for the big publishers.
Another reason we need this clause is in the case of a developer abandoning a product for any number of reasons. They may go out of business, get tired of making games, sign with a big publisher, etc. In any case, we need the right to follow up the product.
I hope this clears things up a little.
Jeff Tunnell GG
#9
"You get to set the price for your game. If you think it is worth $100, then go for it."
Sounds reasonable. I don't think you would sell many units at $100 either though. hehe.
"That clause is in the contract in case we do burn on demand CD's, compilation CD's, or other means of distribution that have tangible COGS (Cost Of GoodS). A CD, including packaging and handling, will cost around $2.50, but we would add a little more than that to the price. ESD (downloading) has a tangible COGS due to infrastructure and bandwidth, but we don't know what it is yet. We know it is less than CD COGS. Until we have some data to go on, we will not be deducting any bandwidth costs, so the split will be 50/50 for downloaded games."
Interesting. I had figured that the only way to distribute the games once we give them to GG would be in a downloadable form but CD pressing with people buying them online and having them shipped out would be quite a nice possability (if I'm reading you correctly). In the last line you did however say that the 50/50 split was on downladed games, does this mean that if we were still only selling via the GG site that if the distribution/storage medium is to be CD that there's a different split? Or do you just mean that the cost of pressed would be removed, then we'd have the split?
"If a game is published on GarageGames and it becomes a hit, we need the right to publish the next version of that game. As the EULA now stands, we have the right to do so, and we feel we need to continue to have that right. The concession we will make (end this will be reflected in a modified EULA) is that we must offer the developer the right to create the sequel first."
Good deal. This is what I was hoping would at least make it into the license. The follow-up/spin-off rights issue is actually the biggest sticking point I had in the license (aside from the royalties but we already cleared that up) and I think this may be a reasonable solution. If you hadn't suggested this I was actually going to, so I think this is a half decent middle ground. When you say sequel I assume you mean follow-up/spin-off? And as far as number of said follow-ups will there be any provision as to how many you offer the developer before you take control? (As in, do we get the first sequel but after that you get the rest without us getting asked?)
"Another reason we need this clause is in the case of a developer abandoning a product for any number of reasons. They may go out of business, get tired of making games, sign with a big publisher, etc. In any case, we need the right to follow up the product."
Speaking of provisions for business failure... How will it be handled if GG goes bust? Shakey economic times and all, it's getting harder for business models to find money and stay afloat. If GG dies do we get to keep working on/with V12? Is GG capable of selling those rights out from under us in the event that you guys need to pay your mortgages or simply the debts incurred by running the company? What about follow-up rights, can GG sell those to someone else?
05/29/2001 (10:46 am)
Thanks for the quick turnaround on my questions, I appreciate it. "You get to set the price for your game. If you think it is worth $100, then go for it."
Sounds reasonable. I don't think you would sell many units at $100 either though. hehe.
"That clause is in the contract in case we do burn on demand CD's, compilation CD's, or other means of distribution that have tangible COGS (Cost Of GoodS). A CD, including packaging and handling, will cost around $2.50, but we would add a little more than that to the price. ESD (downloading) has a tangible COGS due to infrastructure and bandwidth, but we don't know what it is yet. We know it is less than CD COGS. Until we have some data to go on, we will not be deducting any bandwidth costs, so the split will be 50/50 for downloaded games."
Interesting. I had figured that the only way to distribute the games once we give them to GG would be in a downloadable form but CD pressing with people buying them online and having them shipped out would be quite a nice possability (if I'm reading you correctly). In the last line you did however say that the 50/50 split was on downladed games, does this mean that if we were still only selling via the GG site that if the distribution/storage medium is to be CD that there's a different split? Or do you just mean that the cost of pressed would be removed, then we'd have the split?
"If a game is published on GarageGames and it becomes a hit, we need the right to publish the next version of that game. As the EULA now stands, we have the right to do so, and we feel we need to continue to have that right. The concession we will make (end this will be reflected in a modified EULA) is that we must offer the developer the right to create the sequel first."
Good deal. This is what I was hoping would at least make it into the license. The follow-up/spin-off rights issue is actually the biggest sticking point I had in the license (aside from the royalties but we already cleared that up) and I think this may be a reasonable solution. If you hadn't suggested this I was actually going to, so I think this is a half decent middle ground. When you say sequel I assume you mean follow-up/spin-off? And as far as number of said follow-ups will there be any provision as to how many you offer the developer before you take control? (As in, do we get the first sequel but after that you get the rest without us getting asked?)
"Another reason we need this clause is in the case of a developer abandoning a product for any number of reasons. They may go out of business, get tired of making games, sign with a big publisher, etc. In any case, we need the right to follow up the product."
Speaking of provisions for business failure... How will it be handled if GG goes bust? Shakey economic times and all, it's getting harder for business models to find money and stay afloat. If GG dies do we get to keep working on/with V12? Is GG capable of selling those rights out from under us in the event that you guys need to pay your mortgages or simply the debts incurred by running the company? What about follow-up rights, can GG sell those to someone else?
#10
-We would always offer the developer First Right of Refusal for spin offs/sequels/etc. Basically, anything that we want to develop from the original idea.
-We could not go back on contractual promises no matter what. Neither could a company that buys GG. GG does have the right to sell the company, but that would, in no way, negate the contracts.
Jeff Tunnell GG
05/29/2001 (12:06 pm)
-The 50/50 would apply to burn on demand CD's after the COGS are taken out.-We would always offer the developer First Right of Refusal for spin offs/sequels/etc. Basically, anything that we want to develop from the original idea.
-We could not go back on contractual promises no matter what. Neither could a company that buys GG. GG does have the right to sell the company, but that would, in no way, negate the contracts.
Jeff Tunnell GG
#11
05/29/2001 (2:56 pm)
What about copy protection... if we distribute our games from your website, do WE (dev) have to figure out a way to prevent copy protection or is it YOU (Pub) that offers a way out of the copy protection mess... I am asking this because I am just in the process of implemeting a copy protection scheme where I work and it is a F****** mess :(
#12
05/29/2001 (3:16 pm)
If you create a spin off will you give the original creator of the idea/CP a small royalty like 3% if they can not create the sequel, or does he get zero?
#13
I am confused about the license agreement concerning IP/Copyrights/Branding etc..:
From License Agreement:
Plain English Version from License Agreement page:
What you said above:
Now as far as I can tell your "First Right of Refusal" clause is not in the End User License Agreement for the V12 source. Does this mean there is another contract/document associated with the actual publication of the game?
The reason I ask is this: Who owns the intellectual property for the game my company creates? Lets say we create the NEXT BIG THING, now like Tribes, Command & Conquer, Warcraft, Quake, etc.. this is a valuable brand for my company to exploit. So far a great part of the appeal of v12 and GG has been that my understanding is that we own those rights. Like these other brand powerhouses (and lesser hailed but successfull others) I would want to create other games (distict from sequels e.g. C&C:Renegades) that would leverage that brand recognition. Does this mean that GG has control of my companies brand for 5 years?
Now if GG has rights to distribute/market (read: make money) sequals to this game this brand for 5 years, I am not too concerned, especially if we explicitly have First Right of Refusal. This seems more than fair. However lets say our company, thanks to GG and the v12 engine, have caught the attention of the game industry, and are able to secure funding to develop a new game. It seems contradictory to the stated philosophy of GG that GG would be able to control the use of that brand by the developer.
Please clarify,
Bob Langley, DFI
05/29/2001 (4:48 pm)
Jeff:I am confused about the license agreement concerning IP/Copyrights/Branding etc..:
From License Agreement:
Quote: (b) Once a Game is delivered to Licensor hereunder, Licensor shall have unrestricted rights to use, modify, edit, license and sell the Games through any and all electronic media now known or hereinafter developed, throughout the world, including without limitation through the Website, through electronic delivery mechanisms, and in "hard" or "box" media formats for a period of five years.
Plain English Version from License Agreement page:
Quote: You agree that, by your delivery of the games to GarageGames, you are granting to GarageGames all electronic distribution rights such as Web, EDS, and box rights to that game for five years.
What you said above:
Quote: First Right Of Refusal:
If a game is published on GarageGames and it becomes a hit, we need the right to publish the next version of that game. As the EULA now stands, we have the right to do so, and we feel we need to continue to have that right. The concession we will make (end this will be reflected in a modified EULA) is that we must offer the developer the right to create the sequel first.
I hope you can understand why we need this clause. If the GarageGames site, platform, and efforts help to create a hit product, or even a product that we feel has a lot pf potential, we need to be able to follow it up. If we can't do this, we just become a stomping ground for the big publishers.
Another reason we need this clause is in the case of a developer abandoning a product for any number of reasons. They may go out of business, get tired of making games, sign with a big publisher, etc. In any case, we need the right to follow up the product.
Quote: -We would always offer the developer First Right of Refusal for spin offs/sequels/etc. Basically, anything that we want to develop from the original idea.
Now as far as I can tell your "First Right of Refusal" clause is not in the End User License Agreement for the V12 source. Does this mean there is another contract/document associated with the actual publication of the game?
The reason I ask is this: Who owns the intellectual property for the game my company creates? Lets say we create the NEXT BIG THING, now like Tribes, Command & Conquer, Warcraft, Quake, etc.. this is a valuable brand for my company to exploit. So far a great part of the appeal of v12 and GG has been that my understanding is that we own those rights. Like these other brand powerhouses (and lesser hailed but successfull others) I would want to create other games (distict from sequels e.g. C&C:Renegades) that would leverage that brand recognition. Does this mean that GG has control of my companies brand for 5 years?
Now if GG has rights to distribute/market (read: make money) sequals to this game this brand for 5 years, I am not too concerned, especially if we explicitly have First Right of Refusal. This seems more than fair. However lets say our company, thanks to GG and the v12 engine, have caught the attention of the game industry, and are able to secure funding to develop a new game. It seems contradictory to the stated philosophy of GG that GG would be able to control the use of that brand by the developer.
Please clarify,
Bob Langley, DFI
#14
If I have a game that has a 'universe theme' attached to it, and I put out other stuff, IE maybe a book, or say did a video and pitched it as a TV show etc, who owns that? As I read the ELUA, one could construde that GG owns the theme.
Thank you for your consideration,
Joseph Wilbanks
Cambium Studios
The EOTP Project
05/29/2001 (4:56 pm)
I have a question.If I have a game that has a 'universe theme' attached to it, and I put out other stuff, IE maybe a book, or say did a video and pitched it as a TV show etc, who owns that? As I read the ELUA, one could construde that GG owns the theme.
Thank you for your consideration,
Joseph Wilbanks
Cambium Studios
The EOTP Project
#15
We are slightly changing the wording of the licensing agreement to include the new language. Before we release the V12, the new wording will be up, and you will be able to choose whether or not you want to use the V12.
It is our hope that we have "graduates" that move on to the "bigs", but it is also our hope to make money. If EA, Sierra, or any other company did not have the right to make sequels of the products that become hits for them, they could not stay in business. The same goes for GG. We need the right to make sequels from our hits.
Jeff Tunnell GG
05/29/2001 (5:46 pm)
Bob,We are slightly changing the wording of the licensing agreement to include the new language. Before we release the V12, the new wording will be up, and you will be able to choose whether or not you want to use the V12.
It is our hope that we have "graduates" that move on to the "bigs", but it is also our hope to make money. If EA, Sierra, or any other company did not have the right to make sequels of the products that become hits for them, they could not stay in business. The same goes for GG. We need the right to make sequels from our hits.
Jeff Tunnell GG
#16
We have stated many times that you own the IP and can make a book, movie, or whatever. GG owns the right to use it in any electronic media (meaning computers, Web, video games) for five years.
Jeff Tunnell
05/29/2001 (5:54 pm)
Joseph,We have stated many times that you own the IP and can make a book, movie, or whatever. GG owns the right to use it in any electronic media (meaning computers, Web, video games) for five years.
Jeff Tunnell
#17
One other question.
I'm considering using v12 for a Space plugin for PennMUSH.
Pennmush is a text Linux RPG server; its got great TCP/IP code however, and makes a good backend. TO this end, I've secured a license from the people that own it, and would use V12 to make a custom client for it, that allows 3D space battles etc.
At this point, we're going to give away the client for free, and charge 5 bucks a month for the MUSH account.
The question is: A: Would we have to pay you royalities?
B: can we allow downloads of the client on our site, or would GG be the only place to download it, considering it is free?
Joseph
05/29/2001 (8:29 pm)
Thanks Jeff.One other question.
I'm considering using v12 for a Space plugin for PennMUSH.
Pennmush is a text Linux RPG server; its got great TCP/IP code however, and makes a good backend. TO this end, I've secured a license from the people that own it, and would use V12 to make a custom client for it, that allows 3D space battles etc.
At this point, we're going to give away the client for free, and charge 5 bucks a month for the MUSH account.
The question is: A: Would we have to pay you royalities?
B: can we allow downloads of the client on our site, or would GG be the only place to download it, considering it is free?
Joseph
#18
That's a good question. Does the creator forfeit all?
05/29/2001 (8:34 pm)
Quote:If you create a spin off will you give the original creator of the idea/CP a small royalty like 3% if they can not create the sequel, or does he get zero?
That's a good question. Does the creator forfeit all?
#19
Bottom line is this. We are open to different business models, but if you make money, we get a part of it. For models that are this far from what our standard is, please email me, and we will explore ways to make it happen. jefft@garagegames.com
Jeff Tunnell GG
05/29/2001 (8:43 pm)
We do not have a set policy for this yet. However, there was much discussion in previous forums. Either search the forums for MMPOG (or other variations), or look at my postings in forums threads.Bottom line is this. We are open to different business models, but if you make money, we get a part of it. For models that are this far from what our standard is, please email me, and we will explore ways to make it happen. jefft@garagegames.com
Jeff Tunnell GG
#20
We are not going to carry the royalty out like that. We do not have the infrastructure or desire to do so. If the original developer does not want to participate in the sequel, they will not get a royalty.
Jeff Tunnell GG
05/29/2001 (8:51 pm)
Tyler,We are not going to carry the royalty out like that. We do not have the infrastructure or desire to do so. If the original developer does not want to participate in the sequel, they will not get a royalty.
Jeff Tunnell GG
Angus Breck
[i]"For games that go to retail box channel: if the game is based on the V12 engine, GarageGames will take 20% of the development fees and royalties you receive from the publisher; if the game is not based on the V12 engine, GarageGames will negotiate on an individual basis for a much lower percentage."[i]
What development fees are we talking about? Assuming box publishing is the next step after releasing the game on GG's website wouldnt development aside from updating and such be complete? Are we talking more about update patches? Is Sierra going to cover the development costs that were incurred during the initial development of the game? I assume they wouldn't given the nature of publishing companies. But perhaps Sierra is more willing than I assume.
And about this 20%... Now GG wants 20% of the 50% cut that's arranged earlier (unclear as to the real percentage) upon licensing V12, or are we talking more of a 20% finder's fee that comes out of a newly negotiated royalties amount that isn't agreed upon until the event of Sierra deciding to publish? If, and I consider this to be the worst case scenario, my above theory is correct and we only get a 50% cut of an already negotiated percentage we'd be looking at the follow figures...
Let's say GG gets 15% royalties from Sierra or whoever (see above post), that means of every $40 game sold $6 is to be given out to GG. GG is now responsible for giving us developers royalties of 50% which is $3. In the event of Sierra publishing your game GG takes out 20% from $3 leaving $2.40 to the developing team per unit sold.
This is all rather vaguely detailed in the FAQ and license agreement. And I understand that it may be the desire of GG to not scare away a developer with tons of legal jargon, but the fact of the matter is that that legal stuff is what matters in the end and what is ultimately used as the contract. I'd appreciate it if someone could clarify this part of the license for me.
Thanks again.