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Most software one buys these days is actually sold as a license to use a copy and not a right to copy itself. So 'buying' a game on Steam or office software from Microsoft is more like paying for an indefinite lease than buying a book at a physical bookstore.
A copyright gives you ownership of your video game. As the legally recognized owner of the game, you can initiate licensing contracts to distribute and sell your work. Licenses must be executed in compliance with various laws and drafted to ensure that the developer's rights and interests are protected.
According to a non-scientific poll of publishers, the costs of developing games for the next-generation of consoles such as Microsoft's Xbox 360 and Sony's PlayStation 3 is estimated to be roughly $10 million as compared to $3-$5 million for the Xbox, PlayStation 2 and GameCube.
You're looking at a range from about $50,000 to $750,000 to make an indie game. The lower $50k amount is the total cost for a solo developer, on average, to work for a year on a game (at least in our experience). As you add more people, the cost goes up.
'The exact licensing fee varies based on the manufacturer (Nintendo, Sony, Microsoft), as well as any deals they may give a publisher, but it can generally be anywhere from $3 to $10 per unit.
A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.
A copyright gives you ownership of your video game. As the legally recognized owner of the game, you can initiate licensing contracts to distribute and sell your work. Licenses must be executed in compliance with various laws and drafted to ensure that the developer's rights and interests are protected.
Under the terms of a licence or distribution agreement a licensee is generally granted the right to use your intellectual property (including your trade mark) or to distribute your product within a defined territory.
Licensing agreements are very common in the video game world. A licence grants a party the right to use a creator's intellectual property, such as a character, logo, or celebrity likeness.
Video games are a creation of the mind and are under the ambit of intellectual property laws. Like any intellectual property, the creation of a video game meets its purpose when it is shared with its potential users or current users. A video game licensing agreement facilitates this purpose.