Royalty Audits: Who, What, When, Where, and How

Speakers: Fred Wolinsky, Jim Charne, Tim Christian

Track: Business and Management

Format: Panel

Experience Level: Intermediate

Description: Have you ever questioned the accuracy of your royalty statements? Do you have reason to believe you are not getting a full and accurate count? That mistakes may be made by your publisher (almost always in its own favor)? Or that royalties are not being calculated and paid as required in your development agreement?

Game publishers make errors in calculating royalty payments. Publisher accounting errors may never come to light unless an audit is undertaken. But many developers fear that conducting an audit may somehow tarnish the business relationship between developer and publisher. Join an experienced game industry lawyer and a well known royalty auditor as they discuss when and under what circumstances to consider your audit, what is involved logistically, how to negotiate your dev agreement to make it audit friendly (and what to avoid that makes it audit nasty!), what happens when the audit results are delivered, and how an audit claim may be resolved without going to litigation. Common audit issues will be discussed, and time is carved out for questions on this delicate issue.

Idea Takeaway: Attendees take away a greater familiarity, understanding, and comfort with all aspects of the game industry royalty audit process so they may better understand what it entails when the time comes to send the notice letter to their publisher.

Intended Audience: Studio heads, studio finance executives, lawyers and accountants who represent developers, dev contract negotiators, and students who want to work on the business side in the game development field.