Product inventors aren't the only ones who can benefit from the concept of licensing. One very popular type of licensing benefits both Flash game developers and the companies that license Flash games. Read on to learn about how Flash game licensing works and how both the licensor and licensee benefit from this type of licensing.

Flash Games

Flash games are online games that are created using vector animation software. These games are very popular with online users and come in a wide range of categories including action, arcade style, and puzzle games. There are several benefits of using Flash to create games versus using other types of software. One is that Flash games load faster than games developed with other software programs. Another good reason to use Flash for games is to give the end user a richer gaming experience. Flash games are often very colorful and have moving game pieces or other features that make Flash gaming enjoyable for users.

Flash Game Licensing

When someone develops a Flash game, they can try to market and distribute it on their own, but they are more likely to license the game to a large company. In most instances, the licensee is not going to sell the Flash games to end users. Instead, the company will make the Flash games available for free in order to drive traffic to a site. If a company makes a free Flash game available, many people may visit their site and end up clicking on ads or making a purchase. This can help companies earn ad revenue or make more product sales.

Types of Licenses

When Flash games are licensed, this is typically called a sponsorship, and there are two main types of sponsorship. Each type gives the licensor and licensee different rights. In an exclusive sponsorship, the sponsor is paying the game developer to have their branding on all versions of the Flash game. This means that Flash games may be branded with the sponsor's logo and other branding materials. In some cases, a sponsor may want all of the rights to a Flash game. This means that the sponsor can distribute the game, claim to be the developer of the game, or edit the code for the game. Another type of Flash game licensing is known as a primary sponsorship. The type of licensing is similar to an exclusive sponsorship, except that the licensor is allowed to sell other non-exclusive licenses to the game that do not have the sponsor's branding attached. The developer can edit the game, claim authorship, enter the game in development contests, and advertise their own services within the game itself.

Benefits

There are benefits to both types of Flash game licensing. An exclusive sponsorship benefits developers because they can earn a good flat rate for the exclusive license. Some sponsors will also contribute to the testing of Flash games, so developers don't have to bear this burden alone. Sponsors benefit because they have a game branded with their name and logo that can be distributed online. The major drawback for developers is that once the exclusive license is sold to a sponsor, they cannot continue selling non-exclusive licenses to other sponsors, which means their revenue is capped. A primary sponsorship benefits developers because they have more control over the games they develop and can earn a good deal of revenue from selling non-exclusive licenses to their games. The primary sponsor benefits because their branded game version is distributed all over the Internet, bringing them traffic and ad revenue.