Minimizing risk in game industry asset transfer contracts, Legal advisory services from Law firm Veat

Law firm Veat provided due diligence (DD) and legal advice to overseas game developers and operators in the process of acquiring games from domestic game companies.

The Veat game team emphasized that accurately understanding the legal status of the target game and eliminating potential legal risks in post-acquisition business operations is critical in game acquisitions, therefore conducting thorough reviews through game due diligence.

Furthermore, Law firm Veat clearly defined the scope of the transfer in the contract and structured the contract details to prevent potential legal risks after the contract is signed. In particular, provided specific advice on potential changes to the business model after the transfer contract or the validity of existing contracts.

This transfer contract was particularly supported by the Veat game team's meticulous analysis of legal issues before and after the transfer, drafting Korean and English contracts to allow the client to operate games stably in domestic and international legal environments.

What points should be checked for game acquisition?

You should comprehensively check the legal elements related to game acquisition.

First, you should check whether there is any risk of infringement of intellectual property rights such as copyright, trademark, and patent of the target game. Also, you should review all contracts related to the game, such as publishing contracts and license agreements, to ensure that there are no problems after the acquisition.

Also, you should confirm that relevant laws, such as the "Personal Information Protection Act," are complied with when using user data necessary for game operation, such as data processing policies. These aspects require sufficient review, as game-related regulations may vary between countries.

Finally, it is necessary to review whether the game’s database and operating tools can be stably maintained after the acquisition, and to comprehensively review related licenses.

Therefore, we recommend having an expert who can comprehensively examine the game case conduct a legal due diligence phase to clearly identify the target game's intellectual property (IP) status, the validity of existing license agreements, and legal issues related to in-game assets and data processing.