Janis kronbergs
Latvia
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I made an agreement with the product designer, who is going to create a design for a card game and packaging. His royalty fee is 15% for this project.
Do I pay the same fee if the game is sold for 5 or 20 years? When do I stop paying?

What is the common practice of making an agreement like this? Any important points I should include?

Cheers
 
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Alex Sagar
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I'm a little unsure about what you mean when you say "create a design for a card game and packaging".

Is the person going to

A) Design the game, in terms of its mechanics.

B) Design the game, in terms of its mechanics, and provide the artwork.

C) Provide artwork for a game designed, in terms of its mechanics, by someone else.

The general royalty percentage for a game design, in terms of its mechanics, is 5%.

https://boardgamegeek.com/thread/802541/what-appropriate-roy...

Artwork and graphic design (which are two different things)usually command a fixed fee, not a % royalty.

https://boardgamegeek.com/thread/1340253/approximate-price-h...

If the person that you are in contact with is going to design the game, in terms of its mechanics, and do the artwork and graphic design I would say that 15% is still excessive.
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Brendan Riley
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kronbergs wrote:
I made an agreement with the product designer, who is going to create a design for a card game and packaging. His royalty fee is 15% for this project.
Do I pay the same fee if the game is sold for 5 or 20 years? When do I stop paying?

What is the common practice of making an agreement like this? Any important points I should include?

Cheers


Yes, a royalty is usually in perpetuity (forever). Your agreement should include the terms by which you pay him (quarterly, yearly) and if/when your reporting responsibility stops (if the game goes out of print, for instance, perhaps you don't have to send him sales reports unless a new print run is stated).

Also, be sure to clarify what you're getting the 15% from. 15% of the price you sell the game for or 15% of the retail price. Or is this a one-time payment, like 15% of the overall kickstarter revenue or something. In which case, this isn't a royalty, it's a fee.

As always, you should have a lawyer look over your agreement.
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Leo Zappa
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15% is a high number. Most royalty agreements average around 5%.

https://www.artlicensinginfo.com/royalty-rates-what-is-the-s...

I know in my business, which is not games, we generally also look at 5% for licensing technology.

As for how long you must pay, it's a matter of negotiation but as others have said it's usually for as long as you are selling the product.
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Jake Staines
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BubbleChucks wrote:

If the person that you are in contact with is going to design the game, in terms of its mechanics, and do the artwork and graphic design I would say that 15% is still excessive.


Depends what it's 15% of - 15% of the price the publisher sells the product to the wholesaler for is a very different number to 15% of the price the wholesaler sells the product to the retailer for, or the retailer sells the product to the consumer for.
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Ian Richard
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It all depends on what it says in the contract. Exact wording matters.

Generally though, my contracts have all stated that the royalties last for the life of the contract. As long as the product continues to be manufactured they will continue to pay me. There are often out clauses that allow one of the parties to end the contract, but as long as everything continues as expected... the royalties continue.

That said, I've heard of some people that do have either a set period on the royalties, or a maximum payout when the royalties are considered "Fulfilled" or that if X Copies are sold over the period the royalty perecent goes up or down.

It all depends on the wording you put in the contract. If either party isn't interested in those words, they can walk away so it does need to work for both sides.



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Janis kronbergs
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BubbleChucks wrote:
I'm a little unsure about what you mean when you say "create a design for a card game and packaging".


He is designing artwork and graphic design. Retail price for the game is 15$.
 
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Janis kronbergs
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McTeddy wrote:

That said, I've heard of some people that do have either a set period on the royalties, or a maximum payout when the royalties are considered "Fulfilled" or that if X Copies are sold over the period the royalty perecent goes up or down.


I will look into this, sounds like a solution for this agreement.
 
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