After doing some reading and looking-up of stuff, I've come to the conclusion that making a video game that you plan to sell is NOT simple. My main concern is with protecting my creation from being stolen, among other things. Not to mention making money off my creation. Either way, my question is this: What do you need to know (legally speaking) when starting small game development (sell or not)? I really just have no idea where to start on this subject, but it is of serious concern to me.

There are many things to know, and many things you will need to do.

Most of the stuff can be found in the game dev kit, which covers all the basics.

More stuff to read:
http://www.gamedev.net/community/forums/showfaq.asp?forum_id=5 (AKA "View Forum FAQ")
http://sloperama.com/advice/article58.htm
http://sloperama.com/advice/lesson39.htm
http://sloperama.com/advice/article60.htm
http://sloperama.com/advice/lesson29.htm

This book covers the basics from incorporation, budgeting, IP and various other issues: http://www.amazon.com/Business-Legal-Primer-Game-Development/dp/1584504927

Video games are not that much different from other industries in terms of the legal issues. However having experience in one industry does not necessarily translate to having sufficient knowledge to be successful in games.

Wow. Thanks for the replies, guys. I really appreciate it.