The industry is facing a tough time right now, with significant layoffs already this year. For some, the priority will be finding new roles at existing studios, and I’d recommend checking out Amir Satvat’s excellent ’10 Video Game Career Resources’ on LinkedIn. Others may take this as the opportunity to set up their own studio. I’ve worked with indie studios as a games lawyer for nearly a decade, so wanted to share some starter legal tips. This isn’t legal advice obviously, but I hope it helps a few people out there, even if just a little bit.

1. 1. 1. Establish a Company. Anyone running a studio should consider setting up a corporate entity. In the UK, the standard is a Limited Company. You can do this yourself online at Companies House. It costs £12 and takes only a few days. Benefits to this include limiting your personal liability if something goes wrong, it’s easier to house any IP generated, it’s easier to raise investment, and publishers and other partners will largely expect this. It will change the tax position though (i.e. you’ll be paying corporate + dividend tax when withdrawing money, rather than income taxes), so consider that first.
      2. Paperwork. Anyone working on your game should sign an agreement which clearly details their responsibilities, payment terms and contains IP transfer / moral rights waiver wording. For contractors, this will be a contractor agreement. For employees, this will be an employment agreement. These are very different. Employees require additional benefits like pensions, and the employer is responsible for their taxes. Staff revenue shares are common ways to retain and incentivise staff in early-stage bootstrapping studios where equity isn’t an option. However, these need careful planning, as I’ve seen them go wrong multiple times (e.g. is the revenue share based on company-wide revenues or just project-specific, what happens if someone leaves mid project, what if more staff join etc).
      3. Founders. Think about finding co-founders. The entrepreneurial journey (yes, gamedevs are entrepreneurs) can be lonely. Make sure to find ones that are on the same page in terms of the types of games you want to make, risk appetite, skill sets and long-term vision. If you have multiple founders, you’d ideally sign a proper shareholders agreement. Failing that, you should at least agree how important decisions regarding the company should be made. Also, think carefully about how shares should be distributed.
      4. Tax Incentives. Take advantage of all available tax reliefs and public funding sources. Check out Game Opportunities. Speak with local trade bodies (e.g. Ukie in the UK). Note that VGTR in the UK is changing. We’ve written about this here. Also, speak with an accountant early. They’ll help you with things like when to register for VAT and director’s loans, and save you money, time and stress in the long run.
      5. Time and Budget. Remember that as a general rule, everything takes twice as long and costs twice as much. That’s true whether you’re doing outsourced work or making your own game. If doing outsourced work on a fixed fee basis, make sure you agree a detailed, written scope with the client. Get setup with something like Xero to track and manage costs. Minimise non-essential costs (e.g. an office) wherever possible.
      6. Business Account. Set up a business bank account. Your money is not the company’s money and vice versa. Also, before your game is out, open a USD account for payments from Steam etc. That way you can take advantage of exchange rates over time.
      7. Licensed Assets. Take advantage of third-party assets. But always check the applicable licence terms. Some come with restrictions, and others can’t even be used in games without getting bespoke licences. Be extra careful with music and fonts.
      8. Names. Check your studio and game name before you lock it in. Ideally, speak with a lawyer. At a minimum, check Steam, console and mobile platforms for identical / highly similar names. Also, you can check various trade mark registries via TM View. Failing to do this can be disastrous and result in costly rebranding.
      9. Business. Be prepared to run a business. Running a small studio, you’ll be spending a lot of time not actually making games – HR, operations, finance, legal etc. If you hate the idea of this, find a co-founder or advisor that can help.
      10. Community. Join slack groups, discords etc. There’s a great one for folk in the UK – try Callum Underwood on Twitter. Attend local meet-ups and events. Network early and often. There’s a great industry calendar here. Don’t be afraid to ask questions. Don’t reinvent the wheel. Learn from others. Ask for help.
      11. Insurance. When the time is right, consider getting insurance for your studio. Holding certain types of insurance can be a legal requirement (e.g. in the UK, once you have employees you need employer’s liability insurance).
      12. Game Jams. Game jams are great places to refine your craft and meet people. It’s worth checking the terms of entry though, as some set out rules on ownership of jam creations. And if you later go on to continue development on a jam idea, remember to think about how other co-creators will feel about that, and who might actually own the project.
      13. Deals. Don’t rush into signing deals. Key things to look out for include what and when you’ll get paid, who has to do what and when, who owns the IP, and termination rights and consequences. Ideally, get a lawyer involved, at least for particularly important deals (e.g. high-value work for hire, publishing deals).
      14. Further Resources. Read these two excellent books about the businesses and finances aspects of gamedev from Bithell Games. They’re great primers, covering a lot of ground, and include practical advice and resources from a huge range of advisors.

There’s a bunch of other stuff to consider in due time – commercial agreements, data protection, monetisation regulation, T&Cs, child protection, ad regulation, age ratings, open source software, AI – the list goes on. However, the above is hopefully a helpful starting point.

Also, reminder that many lawyers and accountants offer free initial consultations. If you’re taking this as a chance to set up your own thing and want to chat further, feel free to reach out.

Good luck out there!