Buying Video Game Intellectual Property: Complete Acquisition Guide

Acquiring game IP is a complex legal and financial process. Here's the structured approach:

1. Define Scope

• Entire franchise vs. specific title
• Characters, lore, assets, engine, trademarks
• License (time-limited) vs. assignment (perpetual ownership)

2. Initiate Contact

• Identify IP licensing/BD contact (LinkedIn, corporate site, industry events)
• Submit LOI (Letter of Intent) with scope, vision, and credentials

3. Negotiate Terms

• Rights Scope: Platforms, territories, derivative works, sublicensing
• Financials: Upfront fee, royalties (%), minimums, audit rights
• Exclusivity: Exclusive vs. non-exclusive
• Quality Control: Approval rights, brand guidelines
• Reversion Clauses: Conditions for rights return

4. Due Diligence

• IP ownership verification (chain of title)
• Existing licenses/encumbrances
• Market valuation (comparable deals, revenue projections)
• Legal/financial audit

5. Alternatives

• Licensing (lower cost, less control)
• Joint venture (shared risk/reward)
• Work-for-hire new IP (inspired by, not derivative)

Engage an entertainment IP attorney early. Budgets range from $10K (minor assets) to $100M+ (major franchises).