Terms and Conditions for Mobile Games

Releasing a mobile game, even without charge, creates a legal relationship between you and the users. A Terms and Conditions agreement sets out rules for that relationship so that both sides know their rights and responsibilities.

Here's what you need to know about what your Terms and Conditions agreement for mobile games should include.

What is a Terms and Conditions Agreement?

A Terms and Conditions agreement is a set of rules governing a relationship between two parties. The agreement usually covers the relationship between a customer and a seller or service provider, and you can still use an agreement even if the customer isn't paying for goods or services.

In principle, the Terms and Conditions agreement covers all the rules that apply to the relationship other than the specific details of a particular purchase, such as what the rules to use the product are, and pricing and payment terms.

Do I Legally Need a Terms and Conditions Agreement for Mobile Games?

You do not legally have to use a Terms and Conditions agreement. While countries and jurisdictions have rules requiring some legal agreements such as a Privacy Policy, a Terms and Conditions agreement is voluntary.

Why Should I Have A Terms and Conditions Agreement for Mobile Games?

You need a Terms and Conditions agreement to protect your legal position while offering certainty to both you and the customer. While it might seem like a mobile game isn't a complex legal affair, there's plenty of scope for a legal disagreement. Having clear Terms and Conditions can both reduce the chances of a customer taking legal action against you (by reducing misunderstanding) and reduce the chances of them winning the case.

In theory the two sides negotiate a Terms and Conditions agreement before signing up to it. In practice, particularly with consumers, most sellers and service providers write the Terms and Conditions agreement. The consumer then decides either to accept it or to not become a customer. This means you have more control and influence by writing a Terms and Conditions agreement.

While you might think people could be put off by a legal document, a clear Terms and Conditions agreement will instead build trust and authority in potential customers and game players. It shows you've thought about your business and addressed potential problems and uncertainty.

What To Include in a Terms and Conditions Agreement for Mobile Games

Include any of the following clauses that are relevant to your game, business set-up and distribution model.

Licensing

While most products are sold outright and the buyer takes physical ownership, this isn't usually meaningful with software such as games. Instead, you will usually be licensing the right to use the software. If so, make this point explicitly clear.

You can use a standalone licensing document such as an End User License Agreement, though this may not be necessary as you can make the same points in the Terms and Conditions agreement. (The two terms are interchangeable in many cases.)

Rockstar Games makes clear it is only licensing its games:

Payments and Billing

Exactly what you need to include in this clause depends on whether you sell your game directly to consumers or distribute it through a store such as the Apple Store or Google Play that handles payments for you. If you handle any payments yourself (including in-app payments), clearly explain:

• When you will take payment, including for subscriptions
• Whether you apply any taxes or fees for particular methods of payment
• What currencies you accept and how you handle any variations in exchange rates
• What happens if a payment fails

If you use app stores and don't take any payments directly, make clear who is responsible for billing issues and where users can find more information.

Don't forget to detail if and how you use any virtual currency such as in-game "money" that users can earn or win and then spend on in-app purchases. In particular, make clear this virtual currency has no financial value in the real world.

Roblox makes this point regarding its virtual currency Robux:

Conditions of Use

Detail any conditions on users playing the games. This is normally a list of things they are not allowed to do. This can include:

• Harassing other players
• Using the game and software to do anything illegal
• Modifying the game code without permission
• Cheating in games against other players
• Copying or distributing the game without permission
• Disguising the user’s location, for example to get around regional restrictions or access lower subscription costs

Set out the consequences for breaking any of these rules. This could include suspending or terminating a user account or removing access to the game.

Some conditions may require the user to do something rather than banning them from doing something. For example, it may be mandatory to create an account to access all features of the game.

Gameforge's user conditions include some very specific rules:

Account Suspension and Termination

Set out how either side can end the legal relationship. This could include cases where the user has breached the agreement, for example by doing something banned in the user conditions sections. It could also include either side ending the relationship without having to give a reason.

Detail any consequences including:

• Whether the user can carry on playing the game
• Whether you refund any money
• Whether the user has to take any action such as uninstalling the game from their devices

Riot Games gives clear details of reasons for suspension or termination:

Technical Requirements

Detail any technical requirements for playing the game. This could include the specifications of their device and the speed and reliability of their internet connection. Make clear that you are not responsible if they are unable to play the game or use particular features because they do not meet these requirements.

Klei Entertainment's terms cover technical requirements:

Returns and Refunds

Say if, when and how a user can get a refund on a game or any in-game purchases. Points to cover include:

• Whether the user needs a reason or can simply change their mind
• Any time limit, which could be how long it is since they bought or downloaded the game, or the total time they have spent playing the game
• What happens following the refund, for example the game stops being accessible or the user must uninstall it
• Any future restrictions. For example, you might say the user can only get a refund once for the same game

If you distribute the game through an app store, the user may need to request a refund through the store. If so, mention this in the Terms and Conditions agreement and tell the user where to do this.

If you have produced a lot of games or your returns rules are complex, you could have a dedicated Return and Refund Policy. If so, link to it from your Terms and Conditions agreement.

Steam explains the methods and timescales for getting a refund:

Intellectual Property

This covers copyright, trademarks and other intellectual property such as patents on technology. Clearly explain any relevant rules involving:

• Your intellectual property, such as a ban on the user copying or distributing any element of the game or underlying code.
• The user’s intellectual property, such as their likeness if they add a photo to an account profile. Address any user-generated content that appears in the game itself and may be available for other users to view or interact with.

Microsoft uses particularly clear language regarding its intellectual property in Minecraft:

Limitation of Liability

Liability means your legal responsibility for any harm or loss caused to a user. You should clearly set out what liability you do and do not accept in relation to your game. When you limit liability, you can:

• Specifically detail examples of liability you do not accept
• Say that you do not accept any liability unless you specifically list it
• Combine these two approaches

With a game you may want to explicitly exclude:

• Damage to a user’s computer or files
• Loss caused by the game not functioning or being available to pay
• Any physical or mental harm caused by the game, including playing it excessively

Check whether the laws in your area restrict the ways you can limit liability.

Travian limits its liability extensively while complying with local laws:

Warranty Disclaimer

A warranty is a promise (explicit or implied). A warranty disclaimer expressly states that you are not making a promise. A warranty disclaimer could:

• Specifically detail examples of warranties you are not making
• Say that you are not making any warranties unless you specifically list them
• Combine these two approaches

With a game you may want to explicitly disclaim any warranty that the game will always work or that online features will always be available.

Square Enix uses a warranty that gives examples both of warranties it makes and warranties it explicitly disclaims:

Privacy

Include a short clause that addresses user privacy and links to your full-length Privacy Policy.

Your full Privacy Policy will detail how and why you collect and use the information, whether you share it (and who with), how you keep it secure, and what rights the user has regarding the information. But the privacy clause in your Terms and Conditions can simply include a short statement about your acknowledgement of user privacy being important, and a link to your full policy.

If you target your game at children in the United States aged under 13 or know for certain children under 13 are using it, you will need to follow the COPPA rules. This includes publishing a Privacy Policy and getting verifiable consent from a parent or guardian to collect and use the child's personal information.

You may also have to provide details of your Privacy Policy and/or link to it as part of your game's listing in app stores.

Rec Room Inc gives examples of the types of personal information it collects:

Governing Law and Legal Disputes

This section should cover the following key points:

• Which country’s law applies to any legal dispute
• Which court system will hear any case
• Whether any dispute must go through alternative resolution methods such as arbitration, either before or instead of a court case

If you distribute your game internationally, check the legal position on the governing law. In some countries, the law of the country where a software buyer lives may apply regardless of what your Terms and Conditions agreement says.

Here's how Dovetail Games sets out its legal position:

Updates and Changes to the Terms

Make clear that you have the right to update or change the Terms and Conditions agreement. Say how you will let people know about the changes and what options they have if they do not agree to the changes.

To avoid confusion, list the date when you last updated the agreement.

NetEase explains when and how it will update people about changes:

Displaying and Getting Agreement to Your Terms and Conditions Agreement

The specific methods you use to display and get agreement to your Terms & Conditions agreement may vary depending on the technical set-up and the way you distribute the game.

Two key principles to follow are:

• Give the user a clear and conspicuous way to access the agreement both before and after buying or otherwise acquiring the game and then using it.
• Get clear consent to the agreement before any point in the process where you will rely on it.

Ways to do this include:

• Link to the agreement from your website on a clearly marked, easily accessible page.
• Link to the agreement from any order or download page.
• Include either the text of the agreement, or a link to it, within the game itself.

The best time and place to gather consent is just before the user takes any action that comes under the agreement. This will usually be when they place an order (at which point billing and privacy clauses become relevant) or when they download or access any software (at which point clauses including liability and warranty become relevant). It's often too late to wait until the point when they start playing the game.

To get consent, require the user to give a clear, positive and unambiguous signal such as ticking a box, changing a toggle setting or giving a digital signature before they can proceed.

The Steam application displays the relevant terms when the user is about to install a game and asks the user to confirm agreement before they can complete the installation:

Farmerama does not require installation but requires the user to tick a box to explicitly agree to the Terms and Conditions agreement before they can play:

Summary

A Terms and Conditions agreement sets out the legal relationship between you and a customer or user of your game. You don't legally need one but it's always a smart idea to have one.

The agreement should cover relevant legal points including licensing, payment & billing, intellectual property, termination of the agreement, liability limitation, warranty disclaimers and governing law. It should also cover you and the user's rights and responsibilities, including technical specifications and rules the user must follow.

You'll also need to address returns/refunds and privacy by detailing your Privacy Policy content in the Terms and Conditions agreement and linking to the complete Privacy Policy.

Make sure users and potential customers can easily find and read the Terms and Conditions agreement both before and after buying or downloading the game. Make sure the user clearly confirms they consent to the agreement before any of its clauses become relevant. This is usually either before they pay for the game or before they download or install it.