Could use legal advice - things gone bad. - Games Business and Law

wyrd · 2005-03-06T10:51:33

I guess I'll just start from the beginning... I decided to get into the Pocket PC market since the games are easy enough to create for the platform. I've never done anything "commercial" before, but I've planned to publish this game through a Pocket PC game company that's already well established. So I started the game engine with a game idea in mind. About a month after development I started looking for some help with the graphic aspect of things, since all I had were sprites that I was using temporarily. Somewhere along the line after looking for help, I picked up this guy who wanted to help. He was looking for work that he could put on his resume. I gave him a demo of what I currently have done, and we discussed the gameplay and story. I had an idea of where I wanted to go with it, but nothing set in stone. He gave me some ideas which were good, so I added what I liked. Also during the time he's been doing some artwork, he's given me some gameplay ideas etc. I've also added some of those ideas to the game as well. First, he tried his hand at making sprites, but after two days he couldn't get anything good. I said okay, no problem, let's have you do what you do best, and that's drawings and 3D work. So he started on 3D work. His 3D work is quite good, and I want to use 10 full blown 3D images for the main plot. Basically as cheap cinematics since doing full blown movies would be extreme for a hand held device. This is where problems start showing up. Since I have a publisher interested, I started doing research on the % each person of the development team gets. Usually 10-15% to the publisher, 30-35% to the spriter, 15-20% for sound/music, and the rest to the programmer. The 3D guy I have is the odd man out, but I was thinking of reducing my cut and part of the spriters cut (since he is doing graphic work) to give him 10%. We started discussing how much he'd want for his percentage. We have him doing a single full blown 3D image now to see how long it takes. Based on his time spent so far, he'd want 15% to basically build 3 unique locations and 3 models. He said he'd give me any number of angles, positions of models, etc. I wanted, but to model more locations and models would take more time and obviously he'd want more. This is basically 5% for 1 model and 1 unique location. There's just no way I can possibly consider giving him 15%. That's half of what the pixel artist would get, and the pixel artist would have 4-6 months worth of work to do. 3 models and 3 locations would probably take a month or maybe two. Not to mention that extra percentage would have to come from somewhere, and on top of that we're not even talking about the full 10 unique locations I was thinking of having. So after some discussion, he said he'd finish the first 3D image to get an exact time frame, and then get back to me to discuss further what % he'd get. Here's where I need legal advice: - If I decide to not use his work, is it okay to say "sorry, but you're too expensive" or "I'm not satisfied with the quality of work for that price" and walk away without giving him compensation? After all no % has even been settled on. If I knew these % ahead of time (which he was unable to give me) I would have simply said "no thanks." - There's also the issue of game ideas of his that I'm now using. I'm now worried about having to give him a cut just for the game ideas. I certainly don't want to do that, after all beta testers give ideas all the time. Am I going to be forced to totally redo the storyline and gameplay elements? Obviously gameplay would be similar to what it is now (after all, how many Diablo clones are there?), but it'd take a different approach. - And finally, I'm worried about the 2 days of pixel work that he did which was not even close to good in quality. I don't feel I need to compensate him for that, especially since nothing will be used in the final product and he didn't have any pixel art to show me ahead of time (although I am using one of the sprites as a place holder for the time being). In any case. I've got myself in quite a little bind here. I'm not sure what to do, but I will say one thing: I've learned my lesson the hard way. It's just a question of getting out of this bind without having a legal dispute on my hands. Maybe I'm worrying about nothing, but then again I want to cover my butt. That's why I'm here. Thanks for your time. :)

Obscure

175

March 05, 2005 10:48 PM

Quote: Original post by wyrd
In any case. I've got myself in quite a little bind here. I'm not sure what to do, but I will say one thing: I've learned my lesson the hard way. It's just a question of getting out of this bind without having a legal dispute on my hands. Maybe I'm worrying about nothing, but then again I want to cover my butt. That's why I'm here.

Hopefully others will learn from this that you need to sort these details out up front. In this case it seems there was no agreement so he can't really do much (combined with the fact that you could scrap his work if needed). Too many time people jump into a project but don't sort out the contracts with key staff. This then results in those staff having a strong bargining position later, when their work is an integral part of the project.

Hope it works out OK.

Dan Marchant - Business Development Consultant
www.obscure.co.uk

wyrd

Author

112

March 06, 2005 12:18 AM

Most definitely need to sort them out front. Live and learn, the hard way.

Okay here's how it went:
He didn't seem like he was in his usual cheerful mood, but he agreed to 10% for 10 images (1% for each image used in the final version of the game). So all 10 images used, 10%. None used, 0%. I made a copy of the e-mail and his response, and saved it.

The only downside is that 8 of the 10 images will only be of locations (towns and cities). That's fine, since they're for inbetween map loading and to progress the story as you move from one area to the next. And of course, if I'm not satisfied, I simply won't use them. ;)

Thanks again for the help.

Adraeus

306

March 06, 2005 12:20 AM

Quote: Original post by MichaelT
For any contract that is formal then yes, I do want it on paper.

I don't understand what you're arguing. All formal contracts, unlike informal contracts, require a special form for creation.

Quote: That is not the same as a written contract mind you.

Right. A written contract falls under the category of the express contract.

Quote: A paper is a physical evidence. Nothing more than someone asking you to send them a memo about it. Oral contracts are only enforcable in court when you can prove the agreement. Most of the time, you cannot.

In that case, a memo regarding a contract acknowledges the existence of the contract, therefore, disallowing claim of the contract's nonexistence. If a contract contains the necessary elements, it can be enforced. If no contract exists (or the contract is for illegal performance), then the contract is void. A voidable contract is a valid contract, however, one party may ratify or avoid duty to perform thus releasing both parties from their respective legal obligations. An unenforceable contract is a contract that exists but cannot be enforced for various reasons.

Most oral contracts would likely be voidable yet enforceable. The existence of an oral contract can be proved or assumed, without documentation, based on the behavior of each party. I mean no offense and I don't mean to lecture, however, I suggest you understand the difference between express and implied contracts and the requirements of each, if you don't already and I'm simply misunderstanding you.