So I recently started a Hobbyist Project on Game dev, to turn a project I've already created into a video game. I've recently hired a programmer I think looks promising and we are getting to work on the project. I don't expect profits and my main goal is to complete the project, but just in case I figured I should start a contract between us.
I know it's a good idea to just get a lawyer, but for a project that I have no *expectations* of making money, I'd like to keep the costs down. Someone suggest I just make a contract in plain english, so I did, I'm wondering if anyone here can critique it or offer advice. One possible complication is that I am in Canada and my programmer is in Saudi Arabia.
The basic thing I'm trying to get across is:
1) I still own the rights, including whatever he makes
2) We both get paid if the game makes money
3) It lasts for 5 years.
Anyways, here it is:
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This Profit Sharing Agreement is entered into as of (Date) by (My Name) located at (Address) and (Second Party), both of whom agree to be bound by this Agreement.
Whereas, (My name) has developed Wars of Keridor (“the game”) and holds ownership of all current intellectual property rights in this product, in addition to those developed by (Second Party) for the creation of the game.
(Second party) may not use works created for the game unless for a function that does not compete or hinder the sales of the game, or use its likeness in anyway.
The contract will be binding if the game is sold with coding created by efforts by (Second party). If the game is sold with no work created by (second party) the contract will be void. The contract does not apply to any derivative works, including but not limited to expansions or sequels where (second party) does not contribute additional work.
(My name) and (second party) will share profits realized from the sale of the game as follows:
% of net income will be kept by (My name)
% of net income will be kept by (Second party)
(Second party) will be paid any profits realized at these times:
At the end of each month following the release and sale of the game, if the game makes $250 Canadian or more within that time period.
Otherwise, at the end of each 3 months following the release and sale of the game, if the game makes $250 Canadian or more within that time period.
Otherwise, at the end of each year following the release and sale of the game.
This profit sharing contract will become null and void at the end of 5 years of the release and sale of the game.
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Thoughts?
