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Term > Additional Compensation - Pg. 197

The Publishing Contract Sequels 197 Sequels are closely related to any discussion of the term because they act as extensions. Sequel rights can prolong a relationship, so it is wise to build in assurances that the extension will benefit both parties. Decide what will trigger the publisher's right to make the sequel. Meeting a certain sales level for the original game? Paying the developer a certain amount of royalties? How many sequels will publisher have rights to? Who will develop the sequel? Odds are, you will want the development contract. What will the royalty structure be? Reversion Take care to ensure that your sequel rights come back to you if the publisher decides it isn't inter- ested in publishing a follow-up title. This can be done by giving the publisher an option to pick up sequel rights or granting the publisher so-called exploding sequel rights that revert to you after a certain period of time (two to four years after release of the game for which a sequel is being con- sidered). The option may be free (that is., there is no specific option fee) if it is a short window after initial commercial release or is contingent on hitting an earned royalties threshold within a certain number of months following release, or the publisher may buy an option for a set amount of time, say two years after initial release. Notice If you want to do the sequel, it is important that the publisher have a quick deadline for deciding whether it wants to exercise its sequel rights; otherwise, by the time the publisher decides it wants to do the sequel, you may be committed to another project. Third-Party-Developed Sequels What if you can't or don't want to develop the sequel to your property? If the publisher hires a third