Traps in Investment & Publishing Agreements
summary
Advice: incorporate to hold IP, get accountants involved early, and put a shareholders agreement in place so equity, vesting and buy-backs are defined; funding from grants and publishers counts as taxable income and can be matched to expenses to reduce tax (companies pay 25% company tax for small businesses); many funders require a solicitor's opinion letter confirming IP ownership; beware royalty withholding rules (example: a €4M advance with 10% withholding cuts €400k off expected cash) and insist on audit rights and hard marketing commitments in publishing deals.
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chapters (16)
- 0:00Introduction
- 1:22Speakers' background
- 2:27Starting a studio & structure
- 7:20Shareholder agreements
- 10:31Directors vs shareholders roles
- 13:39Government grants funding
- 20:37Publishing agreement risks
- 27:16Net revenue definitions
- 30:25Publisher liability terms
- 33:31Development agreements & funding
- 35:38Tax offset funding future
- 36:01IP rights & 360 deals
- 38:09Valuing early-stage companies
- 39:34Tax for overseas contractors
- 42:02Best capital sources
- 45:12Publisher for finished game