Developing computer games and off-the-shelf software

Intellectual property (IP) forms the core value of games studios and software - from proprietary engines to iconic characters. Well-managed IP forms an essential part of your marketing and branding, and enables merchandising, sequels, licensing deals and acquisition exits. 

UK law treats software as literary works under the Copyright, Designs and Patents Act 1988.

What IP protection covers in games and software industry

The following rights can be used to protect IP in software and games design:

• copyright - protects source code, artwork, music, dialogue, UI layouts (automatic, 70 years post-mortem)
• trade marks - protect studio names, game titles, logos (you must register for 10-year renewable protection)
• patents - protect novel algorithms, VR mechanics, anti-cheat systems (you must register; 20 years protection, requires inventive step)
• design rights - reserved for character models, UI layouts (3-25 years protection, it can be unregistered or registered)
• trade secrets - can apply to engine technology, balancing formulas (indefinite protection with non-disclosure agreements is possible)

Game mechanics and ideas remain unprotected - only their specific expression.

Invest Northern Ireland can provide IP support for local businesses.

Software licensing essentials

A software licensing agreement protects the author's copyright and IP rights by placing restrictions on the end-user in relation to the usage of the application. The software licence sells the use of the software, not the software itself. Most software is covered by copyright.

If you are considering becoming a software publisher, it is critical that you licence your software very carefully to retain your IP rights and to ensure you are able to generate revenue from your work.

A software licence usually comes in one of three major forms:

• a proprietary licence
• a free licence
• an open software licence

A licence can be an author licence that stipulates how the rights holder wants the software to be used. A developer licence allows the end-user to use a computer program to develop an application, eg for a smart or android phone.

Under the licence, royalties are payable. These are usage-based payments made by the licensee to the licensor for the ongoing use of software or an application.

A proprietary software licence is typically provided with commercial software and allows the user to use a program but the software developer retains ownership of the program and source code. Read about types of software licences for business.

An open source licence makes the source code available for everyone to use. Open source licences are also usually free and allow for modification, redistribution, and commercial use without having to pay the original author. See open source licensing and legal issues.

For more information, see digital intellectual property and your business.