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title: IP Ownership & Copyright Basics
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collection: The Money Question
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path: The Money Question/IP Ownership & Copyright Basics
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parentDocument: null
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outlineId: 78d088cc-deeb-40d0-8d0f-2495093e8dc8
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createdBy: Jennie R.F.
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---
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You're a small group of people making a game together. You've incorporated as a worker co-operative, or maybe you haven't yet. You're thinking of bringing in a contractor for music or art. You want to know: who actually owns this thing you're building?
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This article covers the basics of intellectual property (IP) ownership for small worker-cooperative game studios in Canada.
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:::warning
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***This is general information, not legal advice.* You should get advice from a Canadian IP or entertainment lawyer before signing publishing deals or reorganizing ownership.**
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:::
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IP law (including copyright, trademarks, and patents) is federal, so it works the same way across the country. But employment law, co-op statutes, and contract law are provincial, and those affect how IP arrangements get interpreted and enforced. We'll come back to that.
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## Your game is (almost) pure IP
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Most of a studio's value is in intangible rights, not physical assets. In Canadian law, a video game is treated as a *composite work* made up of many separately protected pieces: source code, scripts and dialogue, visual assets and animations, music and sound design, voice performances, character and level design, branding (studio name, game title, logos), and documentation.
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Each of those components can have its own copyright owner. If you don't have written agreements, you can end up with a game where five different people own five different pieces of it. That means any one of them could block a publishing deal, a port, or a sequel.
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## How copyright works in Canada
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Copyright arises automatically when an original work is created and "fixed" in some tangible form. You don't need to register it. This applies to code, art, scripts, music, sound recordings (basically everything in a game). An unused prototype, a test track, discarded concept art are all protected if they're original and fixed.
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:::notice
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In this context, "fixed" means recorded in some material form (written down, saved in a digital file, or captured in an audio or video recording), not just an idea in someone's head or an improvised performance that is never recorded. [More information.](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en/copyright-learn-basics/copyright-learn-basics-protect-your-original-works-learn-why-copyright-matters)
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:::
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Canada and most countries are members of the [Berne Convention](https://www.wipo.int/en/web/treaties/ip/berne/index), which means your work is automatically protected in other member countries, and their works are automatically protected in Canada, without any registration or formalities.
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### Registration
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Registration is optional but useful. It creates a public record, timestamps your claim, and makes enforcement easier if there's a dispute. The [Canadian Intellectual Property Office](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en) (CIPO) handles it.
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Current (as of 2026) standard fees: $63 to register a copyright. If you don't file online, there's an additional $18 surcharge ($81 total). Recording an assignment or licence (for example, confirming that IP has been assigned to your co-op) is $81 per filing.
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### How long copyright lasts
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As of December 30, 2022, the general term is the life of the author plus 70 years. This was extended from life plus 50 to comply with CUSMA (the Canada-United States-Mexico Agreement). The extension applies to works that were still under copyright at the end of 2022 and to works created after that date. It doesn't revive copyright in works that had already entered the public domain.
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## The default rules: who owns what
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This is where it gets interesting for co-ops, because the answer depends on how someone's relationship to the studio is classified.
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### The general rule
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The person who creates the work is the first owner of copyright. When multiple people collaborate and their contributions aren't distinct, the result can be a "work of joint authorship." Co-authors jointly own the copyright and need each other's permission to license or use the work.
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Joint authorship rules are complicated. Canadian case law looks at both overlapping contributions and an *intention* to create a joint work. Don't rely on default co-ownership to sort things out.
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### Employees: the co-op owns it by default
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Section 13(3) of the Copyright Act says that when an employee creates a work in the course of employment, the employer is the first owner of copyright (unless an agreement says otherwise).
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For a worker co-op, this means that if a member-owner is *also an employee* under a contract or under provincial employment standards, the co-op entity will usually own works created as part of that job (code, art, design created during working hours using studio tools), unless the employment agreement explicitly reserves some IP to the worker.
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### Contractors: the contractor owns it by default
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When someone is an independent contractor (not an employee), the default rule is that the *contractor* owns the copyright, *even if the studio paid for the work*. Payment does not transfer copyright.
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To move ownership to the studio, you need an explicit written assignment of copyright, signed by the contractor. Canada does not recognize the American "work-for-hire" concept for independent contractors. *Adding U.S.-style language to your contract is not enough to transfer copyright in Canada.*
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Without a written assignment, you may end up with only an implied licence to use the work in limited ways. That can cause serious problems when you're trying to sign a publishing deal.
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### Member-owners wearing multiple hats
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This is a uniquely co-op problem. Worker‑members of a Canadian worker co‑op are typically both owners and employees; in limited, clearly separated situations they might also perform services as independent contractors, but that status is determined by CRA and employment law tests, not just by how the co‑op is structured or how the work is documented.
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Your co-op needs to be clear, in bylaws and written agreements, about whether member work is treated as employment (default IP to the co-op), contracted services (default IP to the member unless assigned), or a mix. For example, you could use a schedule attached to your bylaws that specifies which roles are employment and which are contracted.
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### Before you incorporate
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If your co-op is still operating informally without incorporation, IP will generally be owned by the individuals who created it, or by joint authors if work is intermingled. There is no entity to hold the rights yet.
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Early-stage collectives should sign IP assignment or licence agreements before a game gains traction. If you wait until a publisher is interested or until you're shipping, cleaning up ownership retroactively is painful and expensive.
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## Pre-existing IP: what members bring with them
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Say someone has been working on a game idea, code, or art before the co-op forms. Then the group decides to build on that work together.
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Without a written agreement, *that person still owns their pre-existing work*. The co-op might have an informal understanding that "we're all building this together now," but that understanding has no legal weight on its own.
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Before starting co-op development on anything that includes pre-existing work, you need a written agreement that covers:
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1. what exactly is being contributed (be specific: list the assets)
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2. whether it's being assigned to the co-op or licensed
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3. what happens if the contributing member leaves
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4. whether the member retains any rights to use that work independently
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This is a values conversation just as much as it is a legal one. Your co-op's approach to pre-existing IP should reflect how you think about fairness and collective ownership. *But get it written down!*
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## Moral rights: attribution and integrity
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Canadian law gives authors "moral rights" in their works, separate from the economic rights (reproduction, distribution, etc.). Moral rights include the right to be credited and the right to the integrity of the work. *These stay with the author even if the economic copyright is assigned to the studio.*
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Moral rights can't be assigned, but they can be waived. Waivers are often included in contracts so that a studio can modify, localize, or adapt a work without the author later claiming that changes harm their honour or reputation.
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For co-ops, the credit question is worth thinking about carefully. Moral rights waivers are standard practice and make operational sense. You need to be able to edit, port, and update your game without getting individual sign-off every time. But how you handle credits is a values question too. You can go beyond the legal minimum and develop crediting practices that fit how your collective actually works. Have this governance conversation early. *And write it down!*
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## Engines, middleware, and open source
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Your studio almost certainly uses third-party tools: Godot, Unity, Unreal, or others. The licence terms for these tools interact with your IP ownership.
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You typically own the IP in the game you build with the engine, but you don't own the engine itself. Each engine has different licence terms around revenue sharing, source access, and what you can and can't do with engine code. Open-source engines (like Godot, which uses the MIT licence) give you more freedom but still have licence terms you need to follow.
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When you use asset store content, marketplace plugins, or other middleware, those come with their own licences. Some are fine for commercial games, some aren't. Some allow redistribution, some don't. Some restrict certain platforms or uses!
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You need to know what third-party components are in your build and what each licence allows. This becomes part of your chain of title – the documented record of who owns each piece of IP and how it got to the studio.
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*Again, something to sort out early… and write down!*
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#### Chain of title log example
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Each major asset or contribution should have an entry. A shared spreadsheet works fine.
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| Asset / contribution | Creator | Role | Date created / delivered | Agreement type | Agreement date | Agreement location | Rights status | Notes |
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|----------------------|---------|------|--------------------------|----------------|----------------|--------------------|---------------|-------|
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| Character sprite set - all playable characters | Guybrush Threepwood | Member-employee | 2025-06-15 | Employment agreement | 2025-01-10 | /contracts/guybrush-employment.pdf | Co-op owns by operation of law | |
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| Original soundtrack | Manny Calavera | Contractor | 2025-08-01 | Contractor agreement w/ IP assignment | 2025-07-15 | /contracts/manny-contractor.pdf | Assigned to co-op | Includes moral rights waiver |
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| Dialogue script - Act 2 | Curly Brace | Member-employee | 2025-09-20 | Employment agreement | 2025-01-10 | /contracts/curly-employment.pdf | Co-op owns by law | Based on pre-existing outline - see side letter 2025-01-15 |
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| UI icon pack | - | Third-party asset | 2025-04-01 | CC-BY 4.0 licence | - | /docs/third-party/ui-icons-licence.txt | Licensed to co-op | Credit required in shipped build |
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## Trademarks: protecting your studio and game names
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A trademark is a word, logo, or other sign used to distinguish your goods or services from others. For game studios, the trademarks are usually your studio name, game titles, and logos.
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Canada allows both registered and unregistered ("common law") trademark rights, but registration through CIPO gives you stronger, Canada-wide protection and makes it easier to block similar marks.
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### Fees
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Fees are charged per class of goods and services. For online applications through CIPO, [the 2026 fee for the first class is about $491 CAD](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en/trademarks/fees-trademarks), with additional classes at about $149 CAD each. Renewal fees apply every 10 years to keep the registration active.
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### Process
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1. Search the [CIPO database](https://ised-isde.canada.ca/cipo/trademark-search/srch) for conflicting marks (in English and French)
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2. [File an application](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en/trademarks/file-new-or-amended-trademark-or-certification-mark-application) specifying your mark and the goods and services it covers
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3. Wait for examination, publication for opposition, and then registration if nobody successfully opposes it
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This process can take a year or more in a straightforward case, so start early if a trademark matters to you.
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## What platforms require
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When you submit a game to Steam, [itch.io](http://itch.io), console storefronts, or other platforms, you're typically making representations about IP ownership. Platform agreements usually require you to confirm that you own or have properly licensed all the content in your game. Code, art, music, trademarks, everything.
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If your chain of title has gaps (missing contractor assignments, unclear jam contributions, unlicensed assets), those representations may not be accurate. Platforms can pull your game if an IP dispute arises, and you may have liability under the terms you agreed to.
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This is another reason to sort out ownership documentation well before you ship.
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## What happens when someone leaves
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A member leaving a co-op shouldn't mean they take a chunk of the game's IP with them. But whether that's true depends on what agreements are in place.
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If the co-op has proper employment or contractor agreements with IP assignment clauses, work created during those terms stays with the co-op. If there are no written agreements, you may have a problem, especially for contributions made before incorporation or outside formal employment.
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Your bylaws should address what happens to IP when a member departs. Does all project IP stay with the co-op? Does the departing member retain any licence to use their contributions in personal work? What about work that blends personal and co-op contributions?
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The same questions apply if the co-op dissolves entirely. Your dissolution provisions should address who gets the IP: Is it distributed among members, sold as an asset, released under an open licence? From our experience, you should think about this before you *need* to.
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## Highest-risk scenarios
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### 1. No written agreements
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The most common problem.
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You assume the co-op owns everything because everyone's working on it together, but legally, contractors and some collaborators still own their contributions because no written assignment exists. This is especially dangerous when assets such as key art, engine code, or music were created by non-member contractors or friends of the co-op on informal terms.
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Don't be them. *Write it down!*
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### 2. Founders leave without IP clarity
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Where early contributions were made before incorporation, or before proper employment contracts existed, IP may be jointly owned by individuals rather than by the co-op. If a member leaves, unresolved co-ownership can block sequels, ports, remasters, or licensing. Every co-owner may need to consent.
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### 3. Jam and community contributions
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Game jams, volunteer testing, community contests. You probably dabble in these activities.
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If content from these ends up in the shipped game and the participation terms didn't include IP assignment or a clear licence, you have a problem. Contributors are independent authors who retain their rights. If you jam or invite community-made content into your games, use written participation terms that specify what rights the studio receives, what credit is given, and how moral rights and future uses are handled.
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We've seen lack of agreements among jam teams cause real distress for all involved after the event is over and someone wants to continue working on the game.
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### 4. Unlicensed third-party content
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In practice, using commercial songs, fonts, character designs, or trademarked logos in a commercial game is very unlikely to qualify as fair dealing and generally requires a licence.
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*Even "royalty-free" libraries and marketplace assets have licence terms you need to actually read.* Make sure they cover game use, your distribution platforms, and any planned ports or merchandise.
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## Provincial differences
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Because copyright, trademarks, and patents are federal, the core rules discussed above are the same everywhere in Canada. What varies by province:
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* Employment standards and labour laws, which affect whether someone is classified as an employee or contractor
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* Co-op statutes and corporate law, which define how co-ops hold property and who can bind the organization
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* Some procedural rules and remedies in provincial courts
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Studios in Quebec should also consider the civil-law framework for contracts, which can shape how IP agreements and moral rights waivers are interpreted even though the underlying IP statutes are federal.
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Each co-op should, with local legal help, confirm the correct governing law for their agreements, check how their contributors are classified under local employment standards, and review their provincial co-operative statute for any rules about property ownership and board authority.
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## What to do now
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You don't need to do everything at once, but these are the basics that protect your co-op and your members.
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#### Get written agreements in place
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Employment agreements for member-employees, contractor agreements for anyone who isn't a member, both with explicit IP assignment and moral rights waiver clauses.
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#### Make sure member-owners assign project IP to the co-op
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This should be a condition of membership, in your bylaws or a separate member agreement. Carve out personal projects explicitly and in writing.
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#### Keep a chain-of-title log
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A simple record of who created which significant asset and under which agreement. You'll need this for publishers, platforms, and investors.
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#### Document pre-existing IP
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If anyone is contributing work that predates the co-op, write down what it is, who owns it, and on what terms it's being brought in.
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#### Know your middleware licences
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List the engines, tools, plugins, and asset packs in your build. Read their licence terms. Make sure they cover your planned use.
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#### Do an IP audit before you ship
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Confirm that the studio truly owns or has licences to everything in the build, including third-party tools, fonts, and libraries. Where there are gaps, cleaning them up with back-dated assignments or updated licences is far cheaper than a dispute after launch.
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#### Have the credits conversation
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Decide as a co-op how you want to handle attribution *beyond* what the law requires.
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---
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## Resources
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* [Copyright Act (Canada)](https://laws-lois.justice.gc.ca/eng/acts/c-42/)
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* [Trademarks Act (Canada)](https://laws-lois.justice.gc.ca/eng/acts/t-13/)
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* [CIPO copyright fees](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en/copyright/standard-fees-copyright)
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* [CIPO trademark fees](https://ised-isde.canada.ca/site/canadian-intellectual-property-office/en/trademarks/fees-trademarks)
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