Effective license management: A key factor for compliance and optimized resource utilization

License management: Significant in all industries, especially in the gaming industry

License management is an essential part of the IT infrastructure in companies across all industries. It refers to the process of controlling, managing and documenting software licenses within an organization. This task can be complex, especially in larger organizations where hundreds or even thousands of software products and versions may be in use simultaneously. Therefore, effective license management requires specialized knowledge and tools.

Especially in the gaming industry, where the use of software-as-a-service (SaaS) tools and subscription-based applications is the order of the day, effective license management plays a crucial role. Video game development often requires the use of a variety of software products, from design and programming tools to server infrastructure and data analysis platforms. Each of these products has its own license terms that must be adhered to.

In addition to simply controlling software usage, well-managed license management ensures compliance with software license agreements. It is not only a question of buying the right number of licenses, but also ensuring that the licenses are used according to the agreements. For example, some licenses can only be used on certain types of hardware or in certain geographic regions.

Effective license management also helps avoid legal conflicts. A breach of a license agreement can result in expensive litigation and even claims for damages. In addition, legal problems can seriously disrupt a company’s business and damage its reputation.

Finally, well-managed license management helps companies make the best use of their IT resources. By recording exactly which software products are used and how many licenses are required for each product, companies can avoid paying for unnecessary licenses. At the same time, the company can ensure that it has enough licenses to achieve its business goals without violating the licensing agreements.

In an ever-changing digital landscape, where failure to comply with license agreements can lead to significant legal and financial consequences, effective license management is essential. With increasing digitization and the shift in business models towards SaaS and subscription-based models, this task will only become more important.

License management and compliance: A crucial connection

Adherence to compliance requirements is an essential aspect of license management. Software vendors, including those that offer SaaS tools or subscription-based applications, specify in their license agreements specific terms under which their products may be used. Failure to comply with these terms may result in violations of the license agreements, which may have serious legal and financial consequences.

Effective license management helps companies avoid such violations. It enables tracking and documentation of software usage across the enterprise to ensure that all applications are used in accordance with license agreements. This is especially important in the gaming industry, where publishers and developers often have to guarantee in contracts that their games were developed with legally acquired software tools.

In this context, it is also important to note that license management and control of the production and use of assets and other content can be closely linked to optimizing the use of AI tools. As I explained in a previous post, balancing the benefits of AI with minimizing the associated risks is a challenge that every company using AI must overcome. When using AI to generate content, for example in game development, copyright infringement could occur if the AI creates a work that happens to be very similar to an existing work

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But the right strategy and resources can make it possible to reap the benefits of AI while minimizing the risks. Effective license management could be an important part of this strategy. It can support companies in concluding correctly formulated and sufficient contracts with freelancers and employees, monitoring and documenting the use of AI-generated content and, if necessary, implementing measures to check the generated content¹.

Finally, it is important to keep in mind that the question of who is considered to be the author of the work generated by the AI has not yet been conclusively resolved and may be answered differently depending on the legal system. In addition, the general terms and conditions (GTC) of the AI providers can play a role, which often stipulate that the user does not acquire any copyrights to the content generated by the AI¹.

These considerations illustrate that effective license management not only helps ensure compliance with license agreements, but can also serve as an integral part of a comprehensive strategy to minimize risks and maximize the benefits of using AI.

The role of license management in contracts and agreements

In many industries, including gaming, license management is often governed by distribution or publishing agreements. Such contracts may contain clauses that guarantee that the software was created with legally acquired tools. Someone offering a publishing contract to a developer should insist on such a clause to ensure that the software developer does not get into legal trouble during the project development.

It is essential to emphasize that any publisher or client should seriously consider including such clauses in their contracts. The reason for this lies in several aspects. First, from a compliance perspective. Compliance includes adherence to legal requirements, rules and guidelines. Should a developer use copyrighted software without the appropriate license, this could lead to serious legal consequences, including financial penalties and possibly claims for damages. By including appropriate clauses in the contract, the client can ensure that it minimizes these risks.

Second, from a PR perspective. In the event of a license violation, the company’s reputation could be damaged. Customers and partners may lose confidence in the company if they learn that it has been working with illegally acquired tools. Therefore, including license management clauses in contracts can help protect and strengthen the company’s image.

Third, such clauses can also promote long-term cooperation between publisher and contractor. Clearly stating that all tools used must be legally purchased and licensed sets a standard for transparency and integrity in the business relationship. This can help strengthen trust between the parties and create a solid foundation for long-term, successful cooperation.

Overall, including license management clauses in contracts helps minimize legal risks, protect corporate image and promote sustainable business relationships. Therefore, any publisher or client should seriously consider including such clauses in their contracts.

License management consulting: support through specialist knowledge and expertise

As an attorney and consultant, I can help companies optimize their license management practices and minimize compliance risks. I offer consulting, contracting, and workshops to help companies address these complex challenges. Whether it’s reviewing existing license management systems or implementing new ones, I can ensure your practices meet industry best practices.

Effective license management is not only a question of compliance, but also of resource efficiency. By accurately tracking the software used and ensuring that only the licenses needed are purchased, companies can realize significant cost savings. In addition, good license management can help minimize security risks by ensuring that all software versions in use are up-to-date and fully patched.

In the fast-paced world like the gaming industry, effective license management can make the difference between success and failure. It allows companies to focus on what they do best: creating and publishing great games. With my assistance, you can be confident that your company is adhering to the best license management practices to maximize your success and minimize legal risks.

A workshop from me is not only fast, effective and inexpensive to implement, but can also quickly establish structures in your company. By implementing clear policies and procedures, license management is optimized and efficiency is increased. In addition, such a workshop can help to strengthen employees’ trust in their employer. It shows that the company has a strong commitment to legal compliance and ethical business practices, which contributes to overall job satisfaction and ultimately strengthens employee retention.

With my expertise and support, you can be confident that you are adhering to the best license management practices to efficiently use your resources, minimize legal risks, and create an environment where your employees have confidence and satisfaction with their jobs. Effective license management lets you focus on what you do best: creating and publishing great games.

Conclusion

In a world where software plays a central role in almost all industries, effective license management is essential. It helps companies meet compliance requirements, reduce costs and minimize risks. Whether in the gaming industry or in other sectors, good license management is a key factor for business success.

As an experienced attorney and consultant, I am available to help companies optimize their license management systems. Through consulting, contract drafting, and workshops, I can help ensure that your company is up to date on license management. Contact me to learn how I can help your business.

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.