[casual_games] distribution question - AKEL

[Gabriel Zichermann]

And a small plug for Jason - he really can help
smart/directional devs figure this out; he's got a lot
of experience in the field.

And, just so you know, I didn't get compensated in any
way for that comment! :)

Truthfully, negotiating distribution deals can be
tough stuff, especially if you're a new developer
without a long track record. Not casting aspersions on
anyone, just pointing out that some assistance (beyond
legal) is important.

Gabe

--- Jason Akel <jasakel at hotmail.com> wrote:

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