When publishing games on the consoles run by giants such as Microsoft or Nintendo, the publisher has to pay a royalty and sign a licensing agreement. The owner of the IP has the leverage to create the agreement, and decide what they will and will not allow.Īnother aspect of licensing is important to note even if selling products outside of the game itself isn’t a priority, and that is console licensing. Doing so would breach their licensing agreement. EA can make a Star Wars Game, but they can’t fundamentally change the characters or the universe, and they can’t decide to make a film instead. Licensing agreements will typically have a number of stipulations as to how the IP can be used as well as for how long. This can also work the other way around Disney licensed the Star Wars IP to EA Games, for the purpose of making games set in the Star Wars universe. To make Minecraft foam swords, t-shirts, and figures, the manufacturers first had to be given access to the Minecraft IP to a limited degree. Video Game Licensing is when you make a business agreement with a company so they can have access to your intellectual property for the purpose of creating a commercial product. Let’s start with the basics, what is video game licensing? Licensing and IP Management In The Videogame Industry.What Comes First? The Game Or The License?.
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