2004 Web and Downloadable Games White Paper 

IGDA Online Games SIG 

c) 

Segmented Rights Licensing 

Sometimes called  Non Exclusive IP Licensing , this includes any model in which the various and 

sundry rights associated with a product or IP are segmented and  sold separately  to different parties 

who intend to use those limited rights to capitalize on a specific opportunity. In many cases, this 

parting out of rights is crucial for maximizing revenue. However, the downside is the amount of time 

and energy it takes to identify partners who are interested in these segmented rights and to negotiate 

and maintain deals with each and every one of them. As with the two models listed above, there is a 

tradeoff of risk and reward. In this case the upside is a much higher ability to impact and optimize the 

potential of the IP, but the risk is the investment that must be made in business development in order 

to capitalize and monitor these myriad opportunities. Those resources are then not being invested in 

the creation of new IP that could form the basis of future business. 

In the business models matrix above, two kinds of segmented rights models are specifically listed as 

potential primary business models; 

Usage Licensing

 for web games, and 

Distribution Licensing

 for 

downloadable games. In each case, the developer carves off a certain subset of rights for the 

Licensor to use, and probably monetize, for a specific purpose. Most commonly these two models 

license the right to market and promote the game to their respective user base because they believe 

their user base will see value in that content. This might be monetary value, or simply loyalty value 

that results in that partner being able to charge more for advertising on their site. The key to carving 

up rights effectively is understanding the potential and needs of the various partners, and fitting the 

rights picture together so there is minimal waste as defined by rights that are assigned but not 

capitalized on in a way that benefits the rights holder. 

d) 

Service Solutions 

This model works best for IP owners or licensees who have a library of content that can be 

assembled in such a way as to provide a  package  value that is potentially greater than the sum of 

the parts. For example: a suite of web games, the servers to host and support them, tools for 

monitoring and optimizing the system, and a template driven page generation system; all packaged 

as a full service to the right customer can generate an ongoing revenue stream that is in total 

significantly more than the individual pieces themselves would garner 

Such a package often will generate very strong partnerships that last a long time, as the licensor 

becomes dependent on the developer to provide these services, and as a result the package can be 

quite lucrative. The risk is in the additional resources expended to develop the total package as 

opposed to stand alone products, and the loss of flexibility if the developer finds that things aren't 

going as expected. Generally this approach works better in Web Games than in Downloadable 

Games as in the current state of the industry, at least for a developer, most of the larger potential 

customers for licensing rights to Downloadable Games are already in the service business. 

Building a Successful Advergaming Solution for Chrysler 

Written by Mike Vann, Vice President of Sales YaYa 

In  2003,  YaYa  was  tasked  with  building  an  online  solution  that  would  drive  Chrysler's  product 

consideration  among  adult  consumers  age  35 49  (with  an  emphasis  on  adult  women)  by 

communicating the unique product attributes of Chrysler 

s full line of vehicles. 

In order to address Chrysler's campaign goals and objectives, YaYa evaluated the various games 

media  opportunities  and  solutions  and  focused  on  customized  Interactive  Advergames.  During 

the  strategic  planning  phase  YaYa  distilled  the  relevant  brand  and  target audience information, 

identified  and  outlined  targeted  game based  solutions  for  Chrysler,  and  supported 

recommendations  for  proceeding  with  developing  the  highest  impact  and  most  effective  game 

type and most valuable user experience.  

The  solution  YaYa  created  was  the 

Chrysler  Get  Up  and  Go

  game,  an  entertaining  self 

assessment test that engages consumers and stimulates them to: 

Page 27 of 93