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Dont Let Internal Control Vulnerability Lead to

Release time:2026-03-12 09:43:28


The year-end and New Years period is a critical phase for game companies to push for performance, as intense as a teams opening battle. Yet even with full throttle and explosive output, vigilance remains crucial. Neglecting the blind spots in internal controls could lead to ambushes in the jungle, resulting in casualties and ruined opportunities. The author warns fellow game company professionals about these high-risk pitfallsreal mistakes others have made. Everyone must prepare defenses in advance!

 

Minefield 1: Unclear Ownership of Official Works, Viral Hits "Snatched Up"

Q : Hey there, Xiao A! Our companys game was developed from gameplay design to art and copywriting through our internal teams collaborative efforts. Its almost ready to launchhow awesome is our company? <( ̄︶ ̄)>

A: Hold your horses, Xiao Q. Let me ask you: Have you and your team agreed on the copyright ownership for these game-related artworks and writings?

Q:Little A, I get ityoure referring to the works created in the course of their employment. These are naturally the property of our company.

A:Thats not necessarily the case. Does your teams employment contract specify the copyright ownership of the work created in the course of employment?

Q this ……

A:Judging by your condition, it seems you have no hope.

Q……

A:The ownership of works created in the course of employment is a hidden pitfall that you often overlook. Under the Copyright Law, works produced by individuals as part of their job duties are indeed considered works created in the course of employment. However, companies generally only have the right to use such works within their business scope, while the copyright remains with the author, not the company. This has led to numerous cases game designers suddenly assert ownership rights after a games sudden success, demanding hefty compensation or even its removal from the platform, leaving game companies in a difficult position.

 

A Guide to Avoiding Pitfalls in Minefields:

When signing labor contracts with employees such as designers and developers, game companies must explicitly state the ownership of "job-related works" in the contract. This stipulates that all intellectual property rights of game development-related works (including gameplay design, coding, and art creation) created by employees during their employment shall belong to the company, thereby preventing ownership disputes at the source.

Minefield 2: Employee "Midway Out", Trade Secret May "Leak"

Q:Hey Xiao A, /(o)/~~, Im a bit of a late bloomer. My lead artist quit mid-development, causing the game launch to get delayed. Shouldn t that mean my games safe? Oh, and Ive already had him sign the copyright agreement for the work!

A certainly

QΣ(っ °Д °;)

A:(﹁ ﹁) ~. Incomplete games or design "semi-finished products" may not meet the legal criteria for "works", and the ownership documents of job-related works might not cover these contents. However, the core elements within these "semi-finished products" including core gameplay parameters, code frameworks, story settings, visual designs, copywriting, and postersare the essence of the game project. If former employees disclose or transfer these contents to competitors, they could be accused of "copying homework" and launching similar products first, potentially rendering your companys initial investments futile!

Q:Little A, you must have a way! (☆▽☆)


Minefield 2: "Mine Avoidance" Guide:

1. When an employee resigns, they must complete all necessary handover procedures, return all development materials (including local files, cloud backups, test versions, etc.), and sign the material handover confirmation.

2. Verify whether the employment contract signed by the departing employee includes confidentiality obligations, and whether the scope and duration of these obligations are clearly defined. If not, a confidentiality agreement must be executed, explicitly prohibiting the employee from disclosing semi-finished game products or core design concepts developed for the project on their resume or social media accounts.

3. Core developers may be subject to non-compete clauses, prohibiting them from ing competing firms for up to two years post-employment, with reasonable compensation provided.

4. Establish a trade secret protection mechanism, such as encrypting core code and design plans, and setting tiered access permissions to prevent leaks of undisclosed content.

 

Minefield 3: "solo decision" efficiency is high, compliance risk is hidden in it

Q:Hey Xiao A, the employee turnover issue is now resolved! Our companys Lucky is truly exceptional hes our go-to expert. All problems get solved effortlessly with him, and he makes all core decisions. The team just executes his plans its super stress-free!

A:Thats pretty good. The company wont be his one-man show, right?

Q:No, no, hes really open to everyones opinions!

A:Thats a good point. While the "Chief C" decision-making model unifies team objectives and boosts efficiency, individual decisions may overlook compliance risks due to subjective judgment, potentially crossing regulatory "red lines". Take the recent Spring Festival as an example: many game companies rushed to launch blind box draws and limited-time giveaways to attract traffic, but neglected to disclose essential information draw probabilities and prize lists as required by regulations. This oversight led to regulatory penalties, resulting in both fines and reputational damagea case of losing more than gaining.

Three Pitfall Avoidance Strategies for Minefields:

1. Implement a dual-track parallel mechanism integrating development and legal teams. All product promotion plans (particularly those involving lotteries or prize sales) must undergo prior legal review to identify compliance risks before public release.

2. Create a "High-Risk Gameplay List" that includes card draws, virtual currency trading, large cash rewards, and blind box draws. These activities must not be launched without legal review approval.

3. For features involving user payments and virtual asset transactions, design must strictly comply with regulatory requirements, including transparent probability disclosure, consumption limits for minors, transaction record retention, and real-name authentication process preservation.

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