I imagine this is not a common scenario (I didn't find anything searching for it), but I hope I can get some advice from a 3rd party which also might be helpful for someone else. Here is my scenario:

I started working on a prototype for a browser based, small community RPG, and made it public to a reasonably sized group of people about a month ago. It has had a pretty good reception and caught the eye of a publisher who approached me about wanting to either work with me or license the game from me. This was completely unexpected and I have zero experience with publishing, but am interested in pursuing it.

Some background on the company. They are a pretty new Chinese publisher that has split off from another major Chinese company. They are looking for some long term game investments and feel like my game would be a good opportunity for them.

They are open to just about any sort of arrangement. The options I've been presented with are:

• License to them for specific regions and work by myself (full creative control I assume)
• License to them and also work under them for a salary (more collaborative, less control for me)
• The publisher and I decide upon what changes I need to make before agreeing to anything else, and work from there

They have also asked for me to give them salary and licensing numbers. I think I can ballpark a salary. I've seen some general scenarios from research I've done for regional licencing, but I have no idea what is really realistic there or how to come up with a good figure to start with.

If I could ask about specific things, it would be: what might be the best license/salary situation to negotiate toward? Since they are asking me for numbers, and them coming to me with numbers is there anything I should be aware of?

It is a business decision of course.

First, on your own, do you already have a business plan? Have you already incorporated as a business? Do you have a business lawyer?

Second, with the organization, how comfortable are you with an international contract? Does your business lawyer feel the same way?

How does it work with your existing business plan? Have you investigated other potential partners and publishers?

I would be extremely wary of the deal based on the minimal information you gave. It could be legitimate, it could also be along the lines of "I am an EXILED NIGERIAN PRINCE needing to move the sum of ONE HUNDRED BILLION DOLLARS...."

Before proceeding with ANY negotiations or contracts you absolutely need to consult with a local business attorney. Based on your questions, right now seems to be a great time to hire one.

I was definitely aware that I would need to speak to an attorney, but I was thinking after working on negotiating some terms (but obviously not agreeing to or signing anything). It sounds like I should speak to one right away to get the best advice.

Since this started out as a prototype to experiment with and had no immediate intent of monetizing it, I have not created a business plan. The publisher has ideas for monetizing based on their knowledge of the market. They contacted me simply out of interest in the prototype game I had developed.

Again, since this it is a prototype I have not setup an LLC and certainly no an incorporated business. Would an LLC be enough? I can see needing some sort of entity to be able to license software to another business, which I had not considered.

I agree that it feels a little iffy. I have spent a reasonable amount of time speaking to an international business representative from the company, but I am certainly being cautious, which is why I'm seeking out advice.

Thanks for your feedback!

Yes, it is best to talk to the attorney before negotiations begin. The farther down the road you go, the fewer options you'll have available to you.

Having a publisher fills some specific business needs. Even if everything about the offer is fair and balanced, if you don't actually have those needs it can be a bad deal.

Since you don't have a business plan, how do you know those are your actual needs? Without a plan, without a destination in mind, it doesn't really matter what path you take.

Thanks for all the replies. I'm definitely going to seek out an attorney and will hold off on anything else until I get more information from him/her.