Negotiator of the First Video Game Royalty Agreement 1993

In 1993, a historic moment occurred in the video game industry that forever changed the way developers and creators were compensated for their work. The first video game royalty agreement was negotiated, and it was a game-changer for the industry.

The negotiator of this agreement was none other than Scott Orr, who was working for Electronic Arts at the time. Orr was tasked with negotiating a deal with the developer of the hit game Madden NFL, John Madden Football. The game had already sold millions of copies, and Orr knew that the developer deserved a piece of the profits.

Up until this point, video game developers were paid a flat fee for their work, with no royalties or residual payments. But Orr believed that developers deserved a share of the profits, just like movie studios and musicians.

After months of negotiations, Orr was able to secure a groundbreaking deal for the developer of Madden NFL. The agreement included a royalty structure that would provide the developer with a percentage of the profits for every copy of the game sold. It was a first-of-its-kind agreement that set a precedent for the entire industry.

By negotiating this deal, Orr was able to demonstrate the value of video game developers and their contributions to the industry. He set a new standard for compensation and paved the way for future negotiations.

Today, video game developers are often compensated through royalty agreements, thanks in part to Orr`s pioneering work. His negotiations have had a lasting impact on the industry, and his efforts have helped to ensure that video game developers are fairly compensated for their work.

In conclusion, Scott Orr`s role as the negotiator of the first video game royalty agreement in 1993 was a game-changer for the industry. It set a new standard for compensation and demonstrated the value of video game developers. Today, the industry continues to benefit from Orr`s groundbreaking work, and it serves as a reminder of the importance of fair compensation for all creators.

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