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How to avoid legal problems when developing a game based on someone else’s IP (U.S. guide)

By Freedom251 Team · · 11 min read

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Assume you are making a licensed adaptation. Before writing code or announcing the project, inventory every borrowed element, identify its owner, obtain written permissions, clear the title and branding, document contributor rights, and have counsel review any fair-use, publicity or international questions. Changing names, colors or plot details is not a substitute for permission.

Start with the legal reality

A game based on a movie, novel, comic, television show, existing game or celebrity usually uses protected expression owned by someone else. Copyright can cover the source story, characters, artwork, dialogue, music, recordings, code and audiovisual presentation. A new game that retells, extends or places recognizable characters and settings in a new format is generally a derivative work. In the United States, only the copyright owner can authorize preparation of that new version.

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Copyright begins when an original work is fixed in a tangible form. For qualifying individual-authored works, protection generally lasts for the author’s life plus 70 years. Separate rights may exist in the same asset: a character design can involve copyright, its name or logo can function as a trademark, and a real person’s face or voice can trigger publicity, privacy or performer rights.

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The safest path is a negotiated license. If you cannot obtain one, redesign the project so it does not copy protected expression, or obtain a written legal opinion addressing a carefully documented fair-use theory. There is no percentage, word count, number of musical notes or “change 30 percent” rule that automatically makes an adaptation lawful.

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Map every third-party element before production

Create an IP inventory before your team commissions art, records audio or publishes a store page. WIPO identifies game code, visual elements, characters, storylines, music, titles and logos as rights-bearing assets. Your inventory should include:

  • Source material: the novel, film, comic, show, game, script, artwork or other property that inspired the project, including sequels and spin-offs.
  • Characters and worlds: names, visual designs, costumes, biographies, settings, fictional organizations, creatures, weapons and distinctive props.
  • Story expression: plot points, scenes, dialogue, catchphrases, written descriptions, mission structures and other distinctive narrative material.
  • Visual and audio assets: concept art, animation, photographs, textures, fonts, music compositions, sound recordings, voice lines, sound effects and samples.
  • Software: copied code, open-source packages, commercial middleware, development tools, fonts and data sets, together with their license notices and attribution requirements.
  • Brand presentation: the game title, subtitle, studio name, logos, character marks, title treatments, slogans, screenshots, trailers and social-media graphics.
  • People and performances: actors, voice talent, musicians, influencers, athletes and recognizable real people whose names, likenesses, voices or performances appear in the game or its advertising.

For each row, record where the asset came from, who supplied it, the planned use, the applicable license, required credit and any restrictions. Treat promotional materials as part of the product: an unlicensed screenshot or trailer can create a problem even when the executable build is clean.

Confirm ownership and preserve a chain of title

Locate the copyright owner, trademark owner, publisher, composer, performer or other rights holder for every listed element. A famous property may have different owners for the underlying book, a film adaptation, merchandising marks, music recordings and character artwork. Do not assume that a license from one company covers all of them.

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Search U.S. Copyright Office records when registration or recorded transfers could clarify ownership. Keep copies of registrations, assignments and other recorded documents, but remember that a database entry is not a substitute for reading the operative contract. Ask contributors and vendors to identify any pre-existing material they are bringing into the project.

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Maintain a rights file with signed contributor agreements, permissions, invoices, asset licenses, attribution text, approvals, correspondence and version history. The file should let a reviewer trace each shipped asset to a person or company with authority to grant the rights you need. If ownership is disputed or a contributor cannot document its source, quarantine the asset and replace it or obtain a direct license.

Choose between a license and a redesign

A license gives certainty only for the rights and uses it actually covers. A redesign can remove dependence on a third-party property, but it must eliminate protected expression rather than merely changing labels. Compare the choices against the project’s release plan:

Question Written license Redesign without the property
Rights certainty High for the specified rights, subject to conditions and warranties Depends on whether the new work is genuinely original and independent
Territory and language Can be negotiated for named countries, regions and languages No third-party territory restriction, but local laws still apply
Platforms and media Must list PC, consoles, mobile, cloud, physical products, streams and other intended media Controlled by your own rights and platform contracts
Sequels, DLC and updates Need express options or continuing rights; the first release may not cover later content Available if your team owns the new material
Marketing and merchandising Require separate permission for trailers, screenshots, influencers, merchandise and promotional partners Can be planned under your own brand clearances
Cost and approvals May involve fees, royalties, audits, creative approvals and reporting Shifts cost to rewriting, new art, new music and brand development
Residual dispute risk Reduced when scope and ownership are clear, but breach or termination can still create exposure Risk remains if distinctive protected expression or marks survived the rewrite

If the game’s commercial appeal depends on recognizable characters, story or branding, budget for a license rather than treating it as an optional legal extra.

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Negotiate a license that matches the actual game

WIPO’s Mastering the Game (2022) describes negotiated licensing as the mechanism for authorized use of a property’s title, logos, story, images, settings and characters. A short permission email is rarely enough for a commercial release. The agreement should identify:

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  • Property and rights: each work, character, mark, recording, performance and derivative right being licensed.
  • Game definition: the approved concept, platforms, editions, virtual items, downloadable content, patches, expansions and sequels.
  • Media and territory: digital stores, physical distribution, cloud streaming, broadcast, events, websites and social channels; list every country and language.
  • Term and release deadlines: the start date, expiration, renewal options, minimum release commitments and what happens to existing players if the term ends.
  • Exclusivity: whether the grant is exclusive, shared or non-exclusive, and whether the owner may license another game in the same category.
  • Approvals: who approves scripts, character depictions, builds, patches, store pages, trailers and promotional campaigns; specify response times and what happens if an approver does not respond.
  • Money and reporting: fees, advances, royalties, minimum guarantees, deductions, payment dates, audit rights, taxes and currency.
  • Marketing and merchandise: rights to use names, logos, screenshots, actors, music and claims in advertising, plus any product categories that need separate approval.
  • Sublicensing and partners: whether contractors, publishers, distributors, platform holders and localization vendors may exercise the rights.
  • Credits and notices: exact wording, placement, attribution, copyright notices and trademark notices.
  • Warranties and indemnities: what each party promises about ownership, authority, non-infringement and responsibility for claims. Have counsel define the limits and exclusions.
  • Termination and wind-down: cure periods, takedown duties, sell-off rights, treatment of patches and customer access, deletion or return of assets, and survival of confidentiality, payment and dispute provisions.

Make sure the grant covers the rights you actually need. Permission to display a character in the game may not include the right to use the character in a trailer, on merchandise or in a sequel. Permission for a composition may not include the particular sound recording or a performer’s name and voice.

Understand why changing the source is not enough

The U.S. Copyright Office answers the question “How much do I have to change in order to claim copyright in someone else’s work?” by explaining that only the owner has the right to prepare or authorize a new version. A renamed character with the same distinctive appearance, history and role can still be a derivative use. Recoloring artwork, moving a story to another planet, replacing a few words or combining several recognizable elements does not automatically create permission.

You may own copyright in genuinely new code, art, dialogue or mechanics your team creates, while another party still owns the borrowed expression. Ownership of your additions does not erase the underlying owner’s rights. Separate the original material from the licensed or third-party material in your records and contracts.

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Evaluate fair use as litigation risk, not a shortcut

Section 107 of the U.S. Copyright Act, cited in the 2024 U.S. Code, lists four factors. Fair use is a fact-specific defense assessed after considering the whole use; it is not a pre-clearance certificate. Commercial distribution can weigh against fair use, but no single factor decides every case.

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  1. Purpose and character: Ask whether the game is commercial, whether it adds a genuinely different purpose or meaning, and whether the use is criticism, commentary, parody, teaching or another public-interest purpose. A game that mainly delivers the original franchise to paying players is harder to distinguish from a substitute product.
  2. Nature of the original: Highly creative novels, films, characters, music and artwork receive stronger protection than factual material. Using an unpublished work can raise additional concerns.
  3. Amount and substantiality: Measure both quantity and qualitative importance. The Copyright Office states that there are no legal rules permitting a specific number of words, musical notes or percentage of a work. A small but central scene, melody, character trait or visual detail can matter more than a larger amount of unimportant material.
  4. Effect on the potential market: Consider whether players would buy the game instead of an authorized adaptation, licensed game, soundtrack, book or other derivative product, and whether the use harms a market the owner could reasonably develop.

Use a written risk memo for every proposed fair-use element. Describe the exact asset, the amount used, the game’s purpose, the expected audience, substitutes in the market, planned territory and the reasons a license is unavailable. Have an IP lawyer review the memo before public release. A favorable analysis cannot prevent a takedown, injunction request or lawsuit while the dispute is resolved.

Scenario Typical risk profile Practical response
Critique or parody that references a work only as needed to make the point Potentially stronger fair-use argument, still dependent on the facts and presentation Use only what the commentary requires, avoid market substitution, document the purpose and obtain legal review
Commercial game that lets players inhabit recognizable characters and settings High risk because the product can function as an unauthorized derivative or substitute Seek a license or redesign the characters, world, story and branding
Short quotation, image or musical excerpt used as decoration Risk varies; a small amount can still be qualitatively significant Ask whether the element is necessary, replace it with original material or obtain permission
Reference to a title or character in a factual discussion outside the game Trademark and context questions remain even when copyright use is limited Use the minimum necessary reference and screen the presentation for confusion or implied sponsorship

Clear the title, logo and other branding

Copyright clearance does not clear a game’s name or logo. Trademark infringement is the unauthorized use of a mark on or in connection with goods or services in a way likely to cause confusion, deception or mistake about source. The USPTO evaluates factors such as similarity of the marks, relatedness of the goods or services, marketing channels and other evidence of likely confusion.

Search the USPTO database and relevant markets before committing to a title, studio name, logo or character brand. Check spelling variants, sound-alikes, translations and related entertainment or software categories. Trademark rights can arise through use but may be geographically limited; federal registration can provide broader nationwide protection. A search is not a legal clearance opinion, so have counsel assess conflicts and filing strategy.

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Do not imply that the property owner sponsored, endorsed or published your game unless the agreement expressly permits that message. Similar title treatments, logos, taglines and store imagery can create confusion even when the game contains no copied code or artwork. Potential remedies identified by the USPTO include an injunction, destruction of goods and damages.

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Get releases for people, voices and performances

A copyright license may not grant publicity, privacy, trademark or performer rights. Obtain releases or licenses for actors, voice performers, musicians, influencers, athletes and recognizable real people whose identity appears in the game, downloadable content, trailers, screenshots, livestreams or other promotion.

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Specify the media, territory, term, languages, editing rights, artificial voice or likeness uses, residuals, credit, approval rights and permitted advertising. Confirm that a musician has authority over both the composition and the sound recording, and that a production company can grant rights in an actor’s performance. If a real person is depicted as a character, ask counsel to review applicable publicity and privacy laws in each launch territory.

Plan for international distribution

Copyright exceptions, trademark standards, publicity rights, privacy rules, moral rights and platform requirements vary by country. A U.S. fair-use analysis does not automatically apply in another jurisdiction, and a U.S. license may not cover every territory or language. Before announcing a worldwide release, identify the countries, local distributors and storefronts involved and obtain local advice on the relevant rights.

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Ask the licensor to state territory, language, localization, censorship, consumer-protection and takedown obligations explicitly. If local counsel identifies a restriction, disable the affected asset or edition in that market rather than assuming a U.S. permission solves it everywhere.

Run a clearance review before submission

Schedule a final review after content lock and again after major patches. Examine the complete player experience and every public-facing asset:

  • Executable builds, menus, loading screens, credits and hidden or unused files.
  • Artwork, animation, textures, fonts, music, recordings, voice lines and sound effects.
  • Trailers, screenshots, key art, press kits, influencer briefs, livestream overlays and social posts.
  • Store title, description, tags, logos, age-rating submissions and localization.
  • Downloadable content, events, user-generated-content tools, virtual items and future updates.

Match each item to a license, release, original-work record or documented public-domain basis. Verify that attribution and notice terms appear exactly where required. Confirm approval emails and version numbers, not just a general statement that the owner “liked” the project. Keep a takedown and dispute contact ready so a complaint reaches the person who can pause distribution, preserve evidence and coordinate counsel.

If a rights holder objects

  1. Preserve evidence: save the notice, relevant build, store page, contracts, approvals, source files and publication dates.
  2. Pause expansion: do not add new markets, DLC, advertising or merchandise involving the disputed element while counsel evaluates the claim.
  3. Check scope: determine whether the objection concerns copyright, trademark, publicity, contract limits, attribution or a particular territory.
  4. Contact the right party: use the agreement’s notice procedure or the claimant’s verified legal contact; avoid casual admissions or public arguments.
  5. Choose a remedy: negotiate a license or amendment, remove and replace the asset, limit distribution, or defend a documented position with legal advice.

Do not delete records or rely on an informal social-media exchange as proof of permission. A rights file and an escalation plan reduce the chance that a single disputed asset forces an avoidable store removal.

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Use a practical go/no-go checklist

  • Every third-party element is listed, with an identified owner and source.
  • Chain-of-title documents and contributor agreements are stored in one controlled rights file.
  • Written grants cover derivative rights, platforms, media, territory, language, term, sequels, DLC, updates and marketing.
  • Title, logo, studio name and character marks have been searched and reviewed for likely confusion.
  • Actors, musicians, voice talent and recognizable people have appropriate releases beyond copyright permissions.
  • Any fair-use position addresses all four Section 107 factors and has received qualified legal review.
  • International editions have been checked by counsel familiar with each launch territory.
  • Final builds, trailers, screenshots, store metadata and influencer materials match the cleared versions.
  • Credits, notices, approvals, takedown contacts and post-termination procedures are ready before submission.

This approach cannot guarantee that no one will make a claim, but it converts an improvised adaptation into a documented rights program. For a commercial project built around another party’s characters, story, music or brand, the decisive question is usually not how cleverly the material was changed; it is whether the people with authority granted the rights your release actually uses.

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