SigninG a Publishing Contract

2D. DERIVATIVE WORKS

If your game is successful, it is likely a publisher will be interested in expansions or spin-offs, which many contracts call derivative works. Your contract should clarify what happens when the publisher wants an expansion. You want to reserve the right to make the expansions, but also to be paid if you don’t have the time or inclination to design one. 


If the publisher wants an expansion for your game, and you choose not to design it, you should still get a royalty, but the rate will be reduced from the amount you get for your base game. With little to no involvement, you should expect one-third to one-half of your normal royalty. If you will be partially involved, you can negotiate up from there on a case-by-case basis.

DESIGNER has first right of refusal to work on expansions, line extentions, and new versions of GAME ("Derivative Works"). PUBLISHER shall provide DESIGNER the right to enter into a development agreement for each Derivative Work, on terms no less favorable to DESIGNER than the terms in this Agreement. DESIGNER shall have a maximum of 90 days to consider PUBLISHER’s proposed development agreement.


If PUBLISHER creates a Derivative Work which consists of 50% or more game content (game rules or game mechanics on components) that was not present in the first commercial publication of GAME, and DESIGNER declined to participate materially in the development of that Derivative Work, PUBLISHER shall pay DESIGNER a royalty of X% of the net selling price (gross revenue excluding sales discounts, sales taxes and returns) for copies of the Derivative Work sold by PUBLISHER.

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