When working in any capacity in the entertainment industry, there are a couple important things to keep in mind. First and foremost is that you are not the only one who is good at what you do. There are so many talented actors, musicians, artists, and game developers out there that an attempt at counting them would be futile. You may be the artistic equivalent of Superman, but don’t let that talent go to your head, or you may just end up losing a killer deal to a super hero who has already learned a good lesson in humility.
The second thing to remember is that, when negotiating a deal, it may be best to distance yourself from those who would seek to capitalize on your talents. Under no circumstances does this mean that you should be absent from discussions that concern your future. It just means that, unless you’re already an experienced negotiator, you should probably consider hiring an attorney to smooth things out a little bit.
I recently had an interview with Counselor Alan Behr of Alston & Bird based out of New York. Alan served in the capacity of Chief Legal Officer at GT Interactive Software Corp. (Driver, Unreal Tournament) before it was purchased by Infogrames Entertainment SA and given the Infogrames moniker (IESA has since purchased Atari, as well, adopting the use of a more renown brand name to conduct their business and avoid brand confusion). Suffice it to say, he had a few helpful tips for those developers out there looking to score on a licensing or publishing agreement.
On the topic of gaining leverage during a negotiation, Behr says it’s important to know the answers to the following questions: “How badly do they want it, and how much are they willing to pay for it?” As a developer, if someone is looking to license your game, they clearly want it. It’s important to find the company who wants it the most and is willing to pay the money for it. Knowing the answers to these questions will allow you to get the most out of your intellectual property.
It’s also a good practice to stay focused on objective criteria during a negotiation. This doesn’t just consist of focusing on negotiation objectives or interests, but it also means doing your best not to be subjective in your approach. Behr stresses that it’s difficult to ensure that the other side will play ball when it comes to industry standards, so it’s best to be prepared when you’re at bat. Knowing what other developers get for their licensing deals will help you land a deal that won’t leave you embarrassed later on.
But what happens when you’re trying to make a deal with a genuine hardball negotiator? Maybe it’s best for you to fall back on a solid alternative. Maybe you really want this deal, and you’re going to fire back with your own dirty tricks because you think that’s the best approach. I’ll give you a hint: it’s not. Hardball negotiators will rarely make a deal with each other. I think it’s best to follow Behr’s advice on this one: “Absolutely, under no circumstances, should you let them rattle you. Just hang in there and keep a level head, and eventually they will lose steam.” Those are called “words of wisdom,” for those of you who are unsure.
For more detailed information on making a deal with a publisher, check out this article that Alan Behr and fellow A&B associate Katherine Wallace posted to the International Game Developers Association website.
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