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GamingDecember 14, 20247 min read

Indie Devs: Don't Sign Bad Publishing Deals

Recoupment rates, IP retention, and creative control. A guide for game developers.

You made a hit demo. A publisher offers you $500k to finish it. It feels like a dream. But the devil is not just in the details; it's in the Recoupment.

1. The Recoupment Trap

Publishers usually advance money for development. They want that back first.

  • Bad Deal: 100% Recoupment. The publisher keeps 100% of game sales until they get their $500k back. You starve during launch week.
  • Good Deal: 80/20 Recoupment. You get 20% of revenue from day one, so you can eat, while they take 80% until recouped. Then it flips to 70/30 in your favor.

2. IP Ownership (The Sequel Rights)

Never assign your IP. License it. If you sell the IP to the publisher, they can fire you and hire a cheaper team to make the sequel. Keep the IP; give them an "Exclusive Distribution License" for 5-7 years.

3. Creative Control

Ensure the contract says approvals cannot be "unreasonably withheld." You don't want a marketing exec forcing you to add loot boxes or change the art style halfway through.

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