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Subject: Need help with my negociation for a licence (prototype) rss

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yoan bouillon
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Im currently in negociation with a big brodcaster in Canada for a licence (tv show) they say that i should receive 10% royalty from publisher.
But i.have to give 6% to brodcaster for licence .
They say publisher dont want to pay for licence ....
Since it will be a mass market game.
Ive got feeling im getting srewed.
What you guy think is the usual deal in the trade?
 
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Nick Hayes
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It's quite normal for the designer's percentage to be reduced if the publisher also has to pay a percentage to a licensor.
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yoan bouillon
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But the way they but it ....im paying with royalty the licence..not publisher
 
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Andrew Tullsen
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If you're getting 10%, and paying out 6%, you're still getting 4%, which is close to the average.
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John "Omega" Williams
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Usually the publisher pays the licensing fee.

But as was said above, 4% is good.

What TV show is it?
Consider its potential life span between the start of the game development and when the game is on the shelves.
Will the TV show be ended before that?

Example. I was doing a game a few years back for a popular online comic. In the time I was writing the rules the comic abruptly folded and is now DOA. argh.
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Stijn Hommes
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montrealzoo wrote:
Im currently in negociation with a big brodcaster in Canada for a licence (tv show) they say that i should receive 10% royalty from publisher.
But i.have to give 6% to brodcaster for licence .
They say publisher dont want to pay for licence ....
Since it will be a mass market game.
Ive got feeling im getting srewed.
What you guy think is the usual deal in the trade?
I don't want to sound mean, but I've seen several spelling errors in this post. If you're negotiating in English, please make sure any written documents are as correct as they can possibly be. It adds to how professional they perceive you to be, which is always a positive thing for you when it comes to the negotiation.

If you're negotiating in French, obviously the same thing applies, but I suspect you'd have less of a problem with that.
 
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Corsaire
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Be very careful if you move forward with a commitment to pay the broadcaster based on the publisher's results. It's the kind of situation where you could owe a lot of money if the contracts aren't completely in line. Like if the publisher has a minus for returns and the broadcaster doesn't. Or worse if there is a crisscross between gross and net or gross of reatil versus distribution. Also, some licensors will want to be able to inspect the licensees accounting books, but the onus is on you not the publisher. Tricky.
 
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Seth Iniguez
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montrealzoo wrote:
Im currently in negociation with a big brodcaster in Canada for a licence (tv show) they say that i should receive 10% royalty from publisher.


If this is literally correct, and the broadcaster tells you that you should receive 10% royalty from the publisher, did the publisher confirm this? Do you have a publisher that is interested?

If it is the broadcaster saying that the publisher doesn't want to pay for the license, do you have a publisher that confirms they do not want to pay the license?
 
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Michael Iachini
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I presume you are working with an attorney to help you with this contract, correct? This is definitely something that a good lawyer should be able to help with.

It sounds like you're describing the situation as:
- Publisher sells some games
- Publisher pays you a 10% royalty based on those sales
- You then have to pay the broadcaster a 6% license fee, leaving you with the remaining 4%

If it all works out, that sounds fine (4% royalty seems okay for a mass market game). But the details are going to matter a lot here. For instance, what is the timing of the payments? Might you get into a situation where you owe the broadcaster money before you receive the money from the publisher?

Also, will both parties be working from the same numbers to determine this percentage? It would be catastrophic if, for instance, the publisher pays you 10% of their net profits while the broadcaster is expecting 6% of gross revenues.

The better outcome is to renegotiate so that the publisher pays the broadcaster their 6% fee and then pays you the remainder as your royalty. You shouldn't be writing any checks as the designer; that's the publisher's job.

To my earlier point: Get a lawyer to help you here before you sign anything.

Michael Iachini
Clay Crucible Games
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Be wary of the publisher saying they sold X amount when they really sold Y amount and pay you less. Do you only pay the broadcaster AFTER you get paid from the publisher?

What if the publisher sells 10 games, you pay the broadcaster their share, and then.....the publisher says half the games were returned because pieces were missing and they expect you to pay half the money back. Are you prepared to pass this reverse onto the broadcaster? Now if the publisher and broadcaster were in cahoots, they could make money off you this way.
 
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