Middleware and game engines

As a legal consultant in the games industry for many years, I see it time and time again: a promising games project starts full of enthusiasm, the Unity or Unreal engine is quickly selected, various asset stores are browsed through – and the legal aspects? All too often, they only become an issue when it’s actually already too late. In my practice, I have learned that the legal aspects of engine and middleware usage can be decisive for the long-term success of a game.

The engine decision – more than just technology

Let’s be honest: The choice of game engine is one of the most important decisions in game development. As an avid gamer and tech enthusiast, I understand the focus on technical features. But as a lawyer who has helped numerous developers through licensing crises, I know that the legal framework is at least as important.

In my law firm, I recently had a case in which a promising indie studio discovered shortly before release that its engine license did not cover the planned form of distribution. These are exactly the situations that can be avoided with the right legal advice from the outset. It’s about much more than just the license fees:

The license model trap

The large engine providers often entice clients with temptingly low entry-level licenses. What many of my clients overlook: The license conditions often change with success. I remember a startup that suddenly slipped into a higher license category after a viral hit – with dramatic effects on project financing. My advice here is always: plan from the best case! Read the license terms for successful games, not just the entry conditions.

A detailed example from my practice: A development team had purchased an engine license that initially seemed perfect. However, when they started planning console ports, they realized that the license only covered PC releases. Subsequent licensing not only cost considerably more, but also delayed the release by several months. Such scenarios can be avoided with forward planning.

The open source components

This is a particularly complex topic that I encounter time and again in my consulting practice: The use of open source components in commercial games. Many engines incorporate open source libraries whose license terms can affect your entire project. I remember one case where a studio had to GPL their entire game because they didn’t understand the implications of a single library.

The hidden cost traps of middleware

A topic that is particularly close to my heart because I experience it almost weekly in my law firm: the true cost of middleware solutions. Many developers only see the initial license fee, but the reality is more complex. Let me illustrate this with a specific case from my practice: A client developed a VR game and used specialized middleware for motion detection. The basic license was affordable, but new functions were added with every update – and with them new license costs. In the end, the budget was completely out of control. Today I advise all my clients: Make a comprehensive cost projection over the entire development cycle.

The documentation obligation – more than just annoying bureaucracy

From my many years of experience as a consultant in the games industry, I know that nobody likes to document licenses. But believe me, it can be your salvation. A real-life example: A successful mobile game had to be taken off the market because it was no longer clear whether commercial use of an asset was permitted. The damage caused was in the hundreds of thousands.

That’s why I always advise my clients – and this comes from over 20 years of experience in the industry:

• Keeps a detailed license register from day 1
• Documents even seemingly unimportant decisions
• Saves all license agreements and changes
• Makes regular license audits

The publisher perspective

An often overlooked aspect that I know from my work with publishers is that they look very closely at the license structure of a game. I’ve had cases where promising publishing deals fell through at the last minute because the licensing of the engine or middleware was not suitable for publishers, and a particularly instructive example from my law firm: an indie studio had developed a fantastic game, but the engine license did not allow the transfer of usage rights to publishers. The deal was practically ready to be signed, but then had to be completely renegotiated. This not only cost time and money, but also trust.

Practical solutions from the everyday life of a law firm

After countless consultations and a few late-night crisis meetings with developers, I have developed a few pragmatic approaches that I am happy to share:

The license matrix

One of my most effective tools is a self-developed license matrix. It helps to keep track of all relevant aspects of the various licenses:

• Which platforms are covered?
• What does the cost progression look like?
• What restrictions are there for merchandising?
• What about user-generated content?

The emergency plan

Something I can only recommend from my own business experience: Develop a plan B in case an important middleware fails or license costs explode. This may sound paranoid, but I’ve seen too many developers get into serious trouble without such a plan.

A personal closing

As someone who knows both the legal and the business side of game development, I can only emphasize this: The right licensing strategy is not a necessary evil, but an important building block of your success. In my day-to-day work, I see time and again how crucial forward-looking legal planning can be for the success of a game.

Remember: Good legal protection is like a well-written tutorial – perhaps a little annoying at first, but incredibly valuable for the further course of the game.Do you need support with the legal structure of your engine and middleware licenses? As a lawyer with my own experience in game development, I not only understand the legal side, but also your practical challenges. Let’s work together to develop a strategy that gives you the creative freedom to make great games.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.