Employment Contract
The purpose of an employment contract is to set the terms of your employment. This will include what the company expects from you whilst you work for them and what they will give you in return. Employment contracts are very similar in all lines of work, even in the games development industry.
However, the game industry employment contract is more likely to contain clauses about confidentiality and inventions. This means that the contract will probably contain a clause that requests you don’t share any of the company’s secrets with people outside the company, especially any competitors. It may also mention what will happen to you if you break this clause and share secret information around.
It’s also common for an employment to include a clause that states that any inventions you come up with during your time with the company are automatically the property of the company. This usually means that any game ideas you create during your term of employment belong to the company, even if the game decides not to create the game.
License Agreements
When a publisher wants to make a game about a movie, or other licensed media, the publisher and the movie IP owner execute a contract spelling out the terms of the license. When you're working on a licensed game, your work will be guided by the terms of the license. The contract spells out exactly what the publisher is getting the rights to use. For example, if the license is for the latest sequel to a blockbuster film and the movie studio expressly wants the publisher not to use certain characters from the previous film (due to ownership issues) they will mention this in the contract.
Licensing Contracts don’t last forever, many of the license agreements will run no more than 5 years. This is because after 3 or 5 years the publisher will probably lose any interest in a game product.
Ethical
As games are becoming more popular these days some games have grabbed the attention of the public and the media for all the wrong reasons. Violence, racially insensitive language and even scenes of a sexual nature have become increasingly common in the video games produced today, often met with controversy. It is no surprise then that many game developers have to question their moral ethics as well as those of their audience when creating a game. For example, if a game studio was to create a game were you play as a cowboy who travels through the wild west shooting and killing native American Indians they may have no problem with this concept. However, they may reconsider this idea as certain people may find it offensive. Sometimes, games can be so violent or disturbing that they are banned in countries. This is a serious issue, because if a game studios game is banned it won’t be sold anywhere thus making the studio lose money.