iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
A video-game publishing deal is not one royalty percentage. It is a package of separate bargains covering who finances development, who owns or controls the intellectual property, which party performs publishing work, and how sales proceeds are calculated and distributed. A publisher can pay for development without owning the game, while a developer can retain the franchise yet receive little cash until the publisher recovers defined costs. The contract’s definitions, approvals, reporting duties, and rights after termination matter as much as the headline split.
What a publishing deal actually allocates
Every deal should be read as four connected allocations rather than as a single percentage:
- Funding: advances, milestone payments, or co-financing for development, quality assurance, localization, ports, marketing, launch, and post-launch work.
- Rights: ownership or an exclusive license covering the game, franchise, platforms, territories, term, sequels, downloadable content, and other derivative works.
- Responsibilities: development approvals, pricing, distribution, storefront relationships, marketing, localization, QA, release timing, community support, and post-launch operations.
- Waterfall: the order in which sales deductions, recoupment, and royalty payments occur.
Two contracts can both advertise a 50/50 royalty split yet produce very different outcomes if one permits broad, uncapped recoupment and the other limits the publisher’s recoverable costs. The percentage only becomes meaningful after you know what revenue is being split and when the split starts.
How publishers fund development
Publishers may finance an entire project, only the remaining development budget, or specific launch services. Payments are commonly tied to milestones: a playable build, content-complete version, certification candidate, or final release. Remedy’s description of partner-funded projects refers to milestone-based development fees. Take-Two’s securities filing says third-party agreements generally require development payments that are typically recoupable against royalties.
#1 Best Overall
- Read Before You Buy — No Video Output: These adapters support charging and USB 2.0 data transfer, but cannot transmit video signals. Except for standard USB webcams (which use USB data only), they are not compatible with HDMI/DisplayPort cables, video-capable USB-C hubs, or docking stations with video output.
- Convert USB-A Ports to USB-C: Designed to connect USB-C earphones, cables, flash drives, card readers, and other USB-C accessories to standard USB-A ports. Plug-and-play with no drivers or software required.
- Aluminum Alloy Housing: Built with a sturdy aluminum alloy shell that aids in heat dissipation and protects against daily wear and scratches. Designed to maintain a stable and secure connection.
- Compact & Travel-Friendly: The ultra-compact design allows the adapter to stay plugged into your device without blocking adjacent ports or adding bulk, reducing wear and tear on your original USB ports.
- 12-Month Warranty: Backed by a 12-month manufacturer warranty for peace of mind. Designed to meet strict quality control standards for reliable everyday performance.
Before signing, identify whether each payment is an advance against royalties, a production fee, a recoupable expense, or a combination. Confirm the approved budget and the conditions for every instalment. A milestone clause should specify acceptance criteria, the time allowed for review, a cure period for disputed deliverables, and what happens if the publisher rejects a build or stops funding.
What the budget must cover
Ask whether the committed budget includes developer salaries and contractors as well as QA, localization, ratings, ports, platform fees, marketing, user acquisition, customer support, and post-launch patches. If these items are outside the approved budget, the publisher may later classify them as recoupable costs or require the developer to finance them.
Epic Games Publishing announced in 2020 that it would cover up to 100% of development costs, including developer salaries, QA, localization, marketing, and other publishing costs. That is an example of one announced model, not an industry-wide promise. The contract still determines which costs qualify, how they are documented, and when the developer receives royalties.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Funding risk and cancellation
A publisher may reserve the right to suspend or terminate payments after a failed milestone, missed delivery date, change in commercial strategy, or material breach. The agreement should state whether the developer keeps amounts already paid, whether unfinished work must be delivered, and whether rights return if funding stops. A budget that appears large is not equivalent to a guaranteed commitment unless the payment schedule and remedies are enforceable.
Who owns the game and franchise?
Ownership and publishing are separate questions. Three structures appear frequently.
Rank #2
- 5-in-1 USB-C Hub: Experience comprehensive connectivity featuring a Power Delivery input, two USB-A 2.0 ports, a USB-A 3.0 port, and an HDMI port. (Note: The USB-C power delivery input port is only for connecting an external wall charger to power your laptop and cannot power peripheral devices.)
- 90W Pass-Through Charging: Achieve optimal charging with 90W pass-through power to your laptop, supported by a total input of 100W, with the hub reserving 10W for operational efficiency. (Note: Wall charger not included.)
- Quick Data Transfers: Accelerate your productivity with rapid data transfers using a high-speed 5Gbps USB 3.0 port and two 480Mbps USB 2.0 ports.
- 4K HDMI Display: Enhance your visual experience with a hub capable of delivering 4K resolution at 30Hz in both mirror and extend modes. Please note that this hub is compatible with MacBook (macOS 12 and newer), Windows 10 and 11, ChromeOS, and laptops equipped with DP Alt Mode and Power Delivery. Note: This device is not compatible with Linux.
- What You Get: Anker USB-C Hub (5-in-1, 4K HDMI), welcome guide, 18-month warranty, and our friendly customer service.
Developer-owned IP with a publishing license
The developer keeps copyright and franchise ownership, then grants the publisher an exclusive license to publish and commercially exploit the game within a defined scope. The scope should identify platforms, territories, languages, storefronts, editions, and the license term. A time-limited license can preserve long-term control, but only if the contract includes practical rights reversion and a workable process for transferring builds, accounts, and customer data.
Publisher-owned IP
The developer assigns the game and related franchise rights to the publisher or creates the project under a work-for-hire-style arrangement. This may be exchanged for financing, production support, or guaranteed development fees. Assignment language can cover more than the first release, so check whether it also captures sequels, remakes, expansions, characters, names, settings, source code, and future adaptations.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallThird-party franchise licensing
A developer may build a game using an existing franchise owned by another company. The original rights holder can retain control while the publisher and developer receive narrower rights to make and distribute the title. Approval chains become more complex because creative changes, marketing materials, localization, and sequel plans may require consent from both the publisher and the licensor.
The Canadian Intellectual Property Office explains that publishers commonly receive either an exclusive license or ownership in exchange for royalties. Remedy provides a developer-retained example: for projects based on its own franchises, Remedy creates and retains the IP while a publishing partner publishes, distributes, and markets the game.
Rights that are easy to overlook
- Options or first negotiation rights for sequels, remakes, expansions, and downloadable content.
- Merchandising, film, television, books, soundtrack, live-event, and other ancillary rights.
- Territory, language, platform, storefront, subscription, cloud, and physical-product scope.
- Sublicensing and assignment to an affiliate, buyer, distributor, or platform holder.
- Term, renewal, termination triggers, sell-off periods, and automatic or negotiated reversion.
- Access to source code, final builds, certificates, development tools, storefront accounts, analytics, and community channels after termination.
Clean chain of title
A developer cannot license rights it does not possess. A game combines code, music, animation, art, video, fonts, middleware, and other third-party assets that may have different owners. Written contributor agreements should cover copyright ownership or a sufficiently broad license, moral-rights waivers where enforceable, payment terms, confidentiality, and the publisher’s intended platforms and territories. Vendor and freelance restrictions can otherwise block a port, sequel, or acquisition.
Rank #3
- Sleek 7-in-1 USB-C Hub: Features an HDMI port, two USB-A 3.0 ports, and a USB-C data port, each providing 5Gbps transfer speeds. It also includes a USB-C PD input port for charging up to 100W and dual SD and TF card slots, all in a compact design.
- Flawless 4K@60Hz Video with HDMI: Delivers exceptional clarity and smoothness with its 4K@60Hz HDMI port, making it ideal for high-definition presentations and entertainment. (Note: Only the HDMI port supports video projection; the USB-C port is for data transfer only.)
- Double Up on Efficiency: The two USB-A 3.0 ports and a USB-C port support a fast 5Gbps data rate, significantly boosting your transfer speeds and improving productivity.
- Fast and Reliable 85W Charging: Offers high-capacity, speedy charging for laptops up to 85W, so you spend less time tethered to an outlet and more time being productive.
- What You Get: Anker USB-C Hub (7-in-1), welcome guide, 18-month warranty, and our friendly customer service.
How the royalty waterfall works
The usual sequence is:
- Sales generate gross receipts.
- Platform commissions, taxes, refunds, chargebacks, and other contract-defined sales deductions are removed.
- The remaining contract-defined net revenue is allocated to recoupable advances and expenses.
- After the agreed recoupment threshold is reached, the parties divide the remaining revenue according to the royalty formula.
“Net revenue” has no universal meaning. Depending on the contract, deductions can include platform fees, taxes, refunds, chargebacks, payment processing, currency conversion, manufacturing, localization, ports, marketing, user acquisition, advances, interest, internal overhead, and third-party services. The agreement should list each permitted deduction, explain how it is calculated, and say whether costs from one product can be charged against another.
Recoupment examples from published sources
The Canadian Intellectual Property Office gives an illustrative structure in which the publisher takes 80% or 90% of revenue until its initial investment is recovered, after which the parties use an agreed split. Those figures describe an example, not a market-wide standard.
Epic Games Publishing said developers would earn at least 50% of all profits once costs were recouped. The phrase “once costs are recouped” is the operative qualification: a developer may receive no royalty while the recoupment account remains outstanding, even if the game is selling.
Remedy’s official business-model description states: “Publisher has the right for game sale revenue, whereas Remedy has a royalty opportunity.” The wording highlights why the contract’s accounting definition matters: a royalty opportunity is not the same as an immediate share of every sale.
Questions to ask about the waterfall
- Does the developer receive any royalty before full recoupment, or only afterward?
- Does the publisher recoup from total net revenue, from its own share, or through a capped expense pool?
- Are marketing and user-acquisition expenses capped, pre-approved, or open-ended?
- Can internal staff time, overhead, interest, travel, or affiliated-company services be charged?
- Are DLC, bundles, subscriptions, ports, physical editions, and merchandise accounted for separately?
- Are refunds, chargebacks, taxes, and currency conversion calculated consistently by territory and platform?
- Does recoupment cross-collateralize sequels, downloadable content, or other games?
Four common deal models
| Model | Funding | IP position | Typical publisher role | Developer economics |
|---|---|---|---|---|
| Self-publishing | Developer or its financing sources fund development and launch. | Developer retains its own franchise. | Developer handles marketing, platform relationships, localization, QA, distribution, and release operations. | Sales flow directly to the developer after sales-related taxes and discounts; platform fees, QA, and localization are expenses. The developer keeps upside but carries the downside. |
| Co-publishing | Developer and publisher share financing. | Usually negotiated by project; ownership and license scope must be stated. | Duties and approvals are divided between the parties. | Remedy says royalty potential in co-published projects typically reflects the split in project financing. The contract must define each party’s services and costs. |
| Publisher-funded own-franchise deal | Publisher funds some or all development and launch work. | Developer retains its own IP in the Remedy-described model. | Publisher publishes, distributes, and markets; developer develops the game. | Developer receives milestone development fees and a royalty opportunity after agreed costs are recouped. |
| Partner-franchise development | Publisher or licensor finances development through fees and project payments. | Partner generally retains the existing franchise. | Partner controls publishing, distribution, and marketing, often with licensor approvals. | Developer receives development fees and may receive a success-based royalty after recoupment, but gives up franchise ownership and much of the long-term upside. |
Why there is no universal fair split
Authoritative sources do not establish one current industry-wide benchmark for advances or royalty percentages. A defensible evaluation compares the complete package:
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsRank #4
- Dual Converters, Infinite Potential：Includes 2× USB C male to USB A female adapters and 2× USB A male to USB C female adapters. Perfect for a wide range of uses—tablets with Bluetooth keyboards, expand USB ports on macbook, and more. Two different converters for all your daily needs
- Next-Level 10Gbps & 3A Charging: No more slow 480Mbps, this usb to usb c adapter has a transfer speed of up to 10Gbps, allowing you to do more transferring in less time. This usb adapter fits both USB A and USB C charger, supporting up to 3A fast charging
- Upgraded Exquisite Craftsmanship: With an aluminum alloy housing and metal connector, the usbc to usb adapter is extremely durable and sturdy. Rigorously tested to withstand more than 10,000 times of plugging and unplugging, ensuring long-lasting performance
- Broad Compatible: The usb c to usb adapter widely supports all USB C/ USB A devices like laptops, tablets, cellphones, car chargers, and phone chargers. Such as compatible with MacBook Pro/Air 2023/2022, Thunderbolt 4/3 Devices,Apple MagSafe Watch 9/8/7/SE/Ultra, iPad Pro 2022/2021, Samsung Galaxy S23/S20/S10, and iPhone 17/16/15 Pro. Plug and play
- Please Note: To reach 10Gbps speed, keep the cable under 3.3 ft. For USB A Male to USB C adapters, try flipping the USB C connector. USB C Male to USB A adapters support bidirectional 10Gbps transfer within 3.3 ft
- Funding risk: who pays the remaining development budget and launch costs?
- Project stage: is this an early concept, a nearly finished title, or a proven franchise?
- Services: who performs QA, localization, ports, platform negotiations, marketing, user acquisition, community support, and post-launch operations?
- IP control: does the developer retain ownership, grant a time-limited license, or assign the franchise?
- Recoupment: what expenses are eligible, and is the pool capped?
- Scope: which platforms, territories, languages, editions, DLC, sequels, and ancillary rights are included?
- Downside protection: what happens if the publisher misses launch commitments, stops funding, or never releases the game?
A lower royalty percentage can be economically better than a higher one if it starts before recoupment or uses a narrow, capped cost definition. Conversely, a high percentage may have little value if the publisher owns the IP, controls all sequels, and can charge broad expenses indefinitely.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Clauses to inspect before signing
Budget and milestones
Record the approved budget, payment dates, deliverables, acceptance tests, review deadlines, cure periods, and consequences of a rejected milestone. State whether the publisher can reduce the budget unilaterally and how approved changes are funded.
Recoupable costs
Prefer a closed list or clearly bounded categories. Address marketing caps, internal overhead, interest, third-party fees, ports, downloadable content, bundles, refunds, and cross-collateralization. Require written approval for material expenses outside the original plan.
Revenue definition
Define gross receipts, platform fees, taxes, refunds, chargebacks, payment processing, currencies, territories, platforms, physical sales, and subscription revenue. Require reporting by platform and territory so the developer can reconcile statements.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Royalty trigger and payment timing
Specify whether the developer shares before recoupment, only after full recoupment, or from the publisher’s share while the publisher recovers costs. Include statement frequency, payment deadlines, reserve limits, and treatment of disputed amounts.
Best Value
- 5-in-1 Connectivity: Equipped with a 4K HDMI port, a 5 Gbps USB-C data port, two 5 Gbps USB-A ports, and a USB C 100W PD-IN port. Note: The USB C 100W PD-IN port supports only charging and does not support data transfer devices such as headphones or speakers.
- Powerful Pass-Through Charging: Supports up to 85W pass-through charging so you can power up your laptop while you use the hub. Note: Pass-through charging requires a charger (not included). Note: To achieve full power for iPad, we recommend using a 45W wall charger.
- Transfer Files in Seconds: Move files to and from your laptop at speeds of up to 5 Gbps via the USB-C and USB-A data ports. Note: The USB C 5Gbps Data port does not support video output.
- HD Display: Connect to the HDMI port to stream or mirror content to an external monitor in resolutions of up to 4K@30Hz. Note: The USB-C ports do not support video output.
- What You Get: Anker 332 USB-C Hub (5-in-1), welcome guide, our worry-free 18-month warranty, and friendly customer service.
Accounting and audit
The developer should receive supporting records and retain audit rights for a defined period. The contract should state who pays audit costs, what happens when an underpayment exceeds a threshold, and whether interest or penalties apply to late or incorrect payments.
Control and approvals
Clarify who sets pricing, discounts, release dates, platform mix, storefront pages, localization, ports, marketing campaigns, and post-launch support. Approval rights need response deadlines; otherwise a silent approver can delay certification or launch.
Termination and reversion
Cover failure to fund, failure to release, insolvency, breach, milestone failure, and prolonged inactivity. Specify sell-off rights, return of source materials, transfer of storefront accounts, removal of sublicenses, and the exact point at which IP and distribution rights revert.
Free tools Windows power users keep installed
One-click scans. No signup required.
Choosing between self-publishing and a publisher
Self-publishing maximizes control and potential revenue but requires the developer to finance and operate marketing, platform relationships, localization, QA, distribution, and support. A publisher can provide capital, specialist staff, storefront access, promotional reach, and launch execution, but the developer may accept recoupment risk, approval constraints, narrower margins, or reduced ownership.
Co-publishing can balance those trade-offs when each party’s funding and duties are measurable. It is most useful when the developer can contribute meaningful capital or a nearly finished game and wants to retain more upside while outsourcing selected launch work. A fully publisher-funded deal may be appropriate when cash flow, platform access, or global marketing is the binding constraint, provided the developer protects IP, limits recoupable costs, and obtains remedies if the project is shelved.
A practical review checklist
- Map every payment and milestone to a deliverable and a date.
- Separate development fees from recoupable advances and expense reimbursements.
- Draw the royalty waterfall from gross receipts to the final split using the contract’s definitions.
- List every right granted, including platforms, territories, term, sequels, DLC, adaptations, merchandise, and sublicensing.
- Assign each publishing task to one party and add approval deadlines.
- Require platform- and territory-level statements, audit rights, and underpayment remedies.
- Test termination, rights reversion, source-code delivery, and storefront-account transfer scenarios.
- Have a lawyer experienced in game contracts review any assignment of IP, broad sublicensing clause, uncapped recoupment provision, or indefinite sequel and derivative-work option.
Further reading
For a deeper treatment of contracts, intellectual property, and royalties in game development, the World Intellectual Property Organization’s Mastering the Game: Business and Legal Issues for Video Game Developers is a useful reference. Its practical value is in showing how creative assets, contributor rights, licensing, and commercial terms interact rather than treating royalties as an isolated percentage.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
