Computer game funding: New conditions & chances | IT-Medienrecht

What’s New About the Federal Government’s Computer Game Funding?

The federal government's computer games funding has been reorganized to provide even more targeted support for the German games industry. With improved funding conditions, the federal government aims to promote the development of high-quality computer games and strengthen the competitiveness of German developers on the international market. This opens new opportunities for game developers – from small indie studios to established companies – to finance and implement their projects.

In this article, I explain the new conditions of the funding, what opportunities it offers, and how I can help as a consultant in setting up game development studios and in drawing up and reviewing contracts.

The federal government’s revised computer game funding scheme brings with it some important changes. These changes will make it easier to access funding and expand support for developers. The new features include:

Increased Funding Amounts:

The federal government's new computer game funding scheme offers game developers not only higher funding amounts but also a clear structure for funding opportunities.

Studios can apply for grants of up to 50% of the eligible costs, with the exact amount depending on the project type and company size. Particularly ambitious projects benefit from a maximum funding of up to 8 million euros per project. Over a period of three years, funding up to 15 million euros is possible. This opens new prospects, especially for larger productions or technologically innovative projects.

Funding Quotas and Bonuses:

The funding guideline provides for a basic funding rate of 25%, which can be increased by additional bonuses:

• SME bonus: Small and medium-sized enterprises (SMEs) receive an additional funding bonus of up to 20%, raising the overall funding rate to up to 45%.
• Start-up bonus: Start-ups no more than three years old can receive a further bonus of 5%, allowing them to achieve a total funding rate of up to 50%.
• These bonuses are cumulative, provided the relevant criteria are met.

Eligible Stages of Development:

The promotion covers various development phases of a game:

1. Prototype development: Grants for the creation of a prototype to test project feasibility or attract investors.
2. Production: Support for the complete development and release of a market-ready game. This also includes ports to new platforms or extensive expansions such as DLCs and add-ons.

Eligible Costs:

The funding covers a wide range of costs, including:

• Personnel costs for developers and designers.
• License costs for software or protected content.
• External services such as sound design or localization (maximum 50% of personnel costs).
• Marketing measures such as gameplay trailers or community support.
• Project-specific legal advice and protection of intellectual property rights.

Not Eligible for Funding:

• Distribution costs such as packaging or shipping.
• General office costs such as rent or standard software.
• Costs incurred before the application was submitted.

If you are planning to develop a game, check exactly which funding category and bonuses are available for your project. I will support you in preparing your funding applications in a legally compliant and precise manner – whether for prototype developments or extensive productions. Take advantage of the opportunity to optimally combine various funding options!

Simplified Application:

The digitalization of the application process is a central component of the federal government’s new computer game funding scheme. Studios can now submit their funding applications entirely via a user-friendly online portal, specifically designed for the games industry.

This portal allows for the digital upload of all required documents, such as project descriptions, cost plans, and schedules. It also provides a clear overview of the application’s status, keeping developers informed about their application’s processing stage.

A significant advantage of this digital system is the faster processing time. By automating certain processes and centralizing application management, studios receive feedback on their funding status more quickly. Furthermore, the portal ensures complete and correct submissions by highlighting any missing information or documents.

Consideration of Cultural Aspects:

Games with cultural or educational added value are a key focus of the federal government’s new computer game funding program. These projects make an important contribution to cultural diversity and education in Germany.

The funding specifically supports projects that use innovative narrative styles or interactive elements to convey socially relevant topics. This includes games that reinterpret historical events, promote cultural values, or deliver educational content playfully. Special attention is given to combining entertainment and education, appealing to both young target groups and adults.

Funding conditions have been adapted to facilitate access for studios undertaking such projects. Beyond financial aid, projects addressing current social challenges like climate change, diversity, or inclusion are also considered. The goal is to encourage game developers to adopt creative and bold approaches that extend beyond mere entertainment, creating a positive social impact.

Requirements for Funding:

Studios must meet certain requirements to benefit from the new funding. These include:

• Registered office in Germany: Only studios with a registered office or permanent establishment in Germany are eligible for funding.
• Degree of innovation: The project must be characterized by technological or creative innovations.
• Cultural contribution: Games with cultural or educational added value are given special consideration.
• Detailed project plan: The application must contain a clear description of the project, a timetable, and a cost breakdown.

Practical Tip:

Thorough preparation is crucial for a successful application. I will support you in preparing your funding application in a legally compliant and convincing manner – from drawing up a detailed project plan to clarifying legal issues. All information and documents can be found on this page.

Legal Challenges When Founding a Game Development Studio

Setting up your own studio is a big step for many developers. However, without a solid legal foundation, problems can quickly arise. The most common challenges when establishing game development studios include:

• Choice of legal form: Should the studio be founded as a GmbH, UG, or GbR?
• Shareholder agreements: Clear regulations on the rights and obligations of the founders are essential.
• Tax aspects: The tax structure plays an important role in the financing of the studio.

I will provide you with comprehensive advice on setting up your studio – from choosing the right legal form to drawing up individual shareholder agreements. In this way, you create a solid basis for your company.

Contracts for Game Developers: What Is Important?

The development of a game often requires collaboration with external partners – such as publishers, freelancers, or technology providers. Clear contracts are essential to avoid legal conflicts.

Important Contract Types:

1. Development contracts: Govern the cooperation between studio and publisher.
2. Freelancer contracts: Clarify rights to created content (e.g., graphics or music).
3. License agreements: Enable the use of external technologies or content.
4. Data protection agreements: Ensure that personal data is processed in accordance with the GDPR.

I support you in drafting and reviewing all relevant contracts to protect your rights as a developer and minimize legal risks.

Why Legal Advice Is Crucial

The games industry is dynamic and complex. Legal mistakes can quickly become expensive or jeopardize the success of a project. Professional advice can help you with this:

• To make optimum use of subsidies.
• To secure your rights as a developer.
• To avoid conflicts with partners or customers.

As an experienced consultant, I can support you with all legal issues relating to the establishment of your studio, applying for funding, and drafting your contracts. Together we will create a solid foundation for your success in the games industry.

Conclusion: New Opportunities Through Improved Funding

The federal government's new computer game funding scheme offers game developers a unique opportunity to drive their projects forward and achieve international success. With higher funding amounts, simplified application procedures, and a focus on cultural diversity, it creates ideal conditions for creative ideas.

However, without a solid legal basis, obstacles can quickly arise – be it when setting up a studio or working with partners. With my experience in setting up companies, drafting contracts, and advising on funding, I can help you achieve your goals safely and efficiently. Use this opportunity to successfully implement your creative ideas!