[casual_games] distribution question - AKEL

[Jason Akel]

Brian is correct that an audit clause should be included. Also, including
reference that you will get access to online reporting will help you avoid
the never-used audit clause and keep track of activity - and spot trouble or
issues quickly.

Here is audit language to use that is fair and widely acceptable:

"Audit Rights.  Subject to the confidentiality provisions set forth in
Section X, and upon the thirty (30) day prior written request of DEVELOPER,
DISTRIBUTOR shall make its books and records directly related to payments
pursuant to this Agreement available for inspection during normal business
hours by an independent certified public accounting firm retained by
DEVELOPER, for the purpose of verifying the payments owed to DEVELOPER, at
DEVELOPER'S sole cost and expense. DISTRIBUTOR shall keep records in
reasonable detail and supporting documentation consistent with normal
industry practices. DISTRIBUTOR agrees to reimburse DEVELOPER on a prompt
basis for the cost of such audit in the event such audit reveals that the
amount paid to DEVELOPER during the period covered by such audit is less
than the amount actually due for such period by an amount greater than five
percent (5%) of such amount actually due for such period.  Audits shall be
limited to one per year.  If such audit uncovers an overpayment to
DEVELOPER, DISTRIBUTOR shall receive appropriate credits against future
sales of the Programs."

BTW, if any developers need help securing distribution (digital or retail)
and negotiating these contracts, I offer full service business development
and marketing services, without the need for you to hire an expensive
attorney.

Regards,

Jason Akel
Games Distribution & Marketing
510.964.9094 | Main
646.221.8885 | Cell
jasakel at hotmail.com | Email & MSN IM
jasakel5 | AIM
jasakel | Skype 

----------------------------------------------------------------------

Message: 1
Date: Sun, 14 May 2006 09:05:57 -0400
From: "Brian Robbins" <brian-l at dubane.com>
Subject: Re: [casual_games] distribution question
To: "IGDA Casual Games SIG Mailing List" <casual_games at igda.org>
Message-ID:
	<7097421f0605140605t5062adafs633028290698de75 at mail.gmail.com>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

This is the purpose of an audit clause in a contract. This should be
pretty much standard in contracts with any distributor, and is across
all the major portals.

Typically you'll have the option to audit their books up to once a
year. If a discrepancy of greater than X% is found then you get
reimbursed the cost of the audit, plus the difference, and possibly
plus some sort of interest or penalty. There's some great info on this
within the IGDA's Business and Legal Contract Walkthroughs:
http://www.igda.org/biz/contract_walkthrough.php  This particular
point is in the 2nd version, but it's a good idea to look at all of
them

At the end of the day, you should trust them to do their business
properly and if you don't, then you shouldn't be signing a
distribution deal with them. That said you should ALWAYS have these
types of protections in a contract no matter how much you trust the
other party.

-- 
Brian Robbins
Director of Games, Game Trust
http://www.gametrust.com/
Chair, IGDA Casual Games SIG
http://www.igda.org/casual/


On 5/12/06, Brent Silby (Def-Logic) <brent at def-logic.com> wrote:
>
>
> Hi all,
> I have a question regarding distribution of casual games.
>
> We are in the process of supplying a distributor with several games. He
will
> distribute demo versions of the games, and end users will then purchase
the
> full version of the game through his site. He will then pay us on the
basis
> of how many games are sold.
>
> My question is this:
> Is there anyway we can protect ourselves from being misled as to how many
> games are actually being purchased? My worry is that the distributor could
> conceivably sell 50000 units but only tell us that 25000 were sold. Don't
> get me wrong, I trust the distributor and do not believe we will be
misled.
> However, I would still like to know how other developers get accurate
sales
> figures. We are new to this, and any help will be greatly appreciated.
>
> Cheers,
> Brent.


------------------------------

_______________________________________________
Casual_Games mailing list
Casual_Games at igda.org
http://seven.pairlist.net/mailman/listinfo/casual_games


End of Casual_Games Digest, Vol 12, Issue 12
********************************************