The University of Glasgow is to launch a pioneering new project focusing on how to use intellectual property (IP) to both sustain and cultivate growth in the videogame industry.

Scotland has a vibrant videogame sector, making up 8.9% of the UK’s total games companies and 11.6% of the UK’s total games developers. With over 1,500 permanent and full-time creative staff working on games development, the games sector plays a valuable role in the Scottish economy – the industry also supports over 2,800 indirect jobs.

The project will investigate how Scotland’s independent games developers can capitalise on the innovation and creativity seen across the industry to develop their own IP that can boost growth and benefit the Scottish economy.

Barriers to Growth

Spearheading the investigation will be researchers from the University of Glasgow’s Adam Smith Business School and the School of Computing Science. The two teams will bring together videogame developers, industry bodies and support organisations to pinpoint what influences successful IP development and, crucially for the Scottish games industry, where the barriers are.

Dr Matthew Barr, Co-Investigator on the project said: “This project aims to reach not only established games development companies, but also those bodies involved in supporting, funding and educating the next generation of games start-ups.”

Traditionally, videogames developers have adopted a work-for-hire, subcontractor-style approach to business, but maintaining this business model has been a barrier to growth and success at times. This model is restrictive and stunts growth in the industry as it is predominately project-based and involves little or no proprietary IP – thus limiting the possibility for building value in a business.

It is suggested that many firms would prefer an IP-based model (where the developer owns the IP, and is responsible for commercialising it) however, for smaller developers on the scene, changing to this model can be challenging and demanding.

Available Options

Professor Colin Mason, the Principal Investigator of the project, suggested that businesses are not fully aware of the advantages of adopting the IP model and as such, aren’t reaching their full potential. He said: “It has been suggested that the IP model can enable such businesses to achieve value and scale. But most do not know enough about this process.”

Professor Mason added that some businesses use both the IP model and work-for-hire alongside each other, and the purpose of the research being conducted is to offer firms an opportunity to consider the options best suited to their needs.

Shared Experience

A number of companies, including Ninja Kiwi, a leading developer and publisher of games for the web, digital entertainment company Blazing Griffin and All 4 Games are taking part in the project, and at a series of workshops in Dundee, Glasgow and Edinburgh, the two firms will share their experiences of trying the IP model and highlight some of the critical factors that contribute to the success or failure of a business.

These events will provide valuable expert advice on the sometimes turbulent nature of business, an issue Dr Barr says established businesses and startups need to be educated on: “We think it’s important for videogame developers – particularly start-up companies – to know about the business models available to them, and developing new IP is a particularly attractive option.

“However, lots of external factors can affect success, including market forces and the availability of funding and investment. We must also consider the internal factors that games companies will need to address if they are to succeed with their own IP, including the IP-related skills, knowledge and experience of the development and management teams.”