SigninG a Publishing Contract

7D. Sell-off period

The publisher will probably want a sell-off period: some amount of time after the contract is terminated to sell off their remaining stock and for sublicenses to wind down. This can be good for you, because they still owe you royalties on anything they sell.


A standard sell-off period is usually 6 or 12 months. You may want to exclude the publisher from selling stock if they are terminated for cause -- in other words, for not holding up their end of the agreement. For example, if they are in breach of contract for not paying your royalties, do you want them to have an opportunity to continue selling your game?

PUBLISHER may sell any remaining stock for a period of 1 year after termination of contract if not terminated for cause, provided all royalty payments are properly and timely made thereon. PUBLISHER shall not produce any additional copies of GAME following the expiry or termination of this Agreement.

At this point in the process, particularly if the game has not been selling well, the publisher may be offering deep discounts to distributors. You might ask for the chance to buy up some or all of the remaining stock at this deep discount. 

Before GAME is sold at special prices below cost, any remaining stock must be offered to DESIGNER at the same conditions. 

Parallel with allowing publishers to sell off their existing stock, most contracts allow sublicenses to continue until they expire. 

The provisions of this Agreement shall continue to apply to sublicense agreements. Sublicense agreements shall, however, be terminated by PUBLISHER at the earliest possible date after notice of termination has been given.

Share by: