2K Sports 2008 Annual Report Download - page 16

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Ditan. We believe this will allow Jack of All Games to better focus on purchasing, sales and service for
their customers.
Jack of All Games has established a strong presence in the budget segment of the gaming software
distribution business due to its expanding portfolio of value-priced products and its expertise in selling such
titles.
Intellectual Property
Our business is highly dependent on the creation, acquisition, licensing and protection of intellectual
property. Some of the intellectual property rights we have created or acquired for our portfolio of brands
are: BioShock, Bully, Carnival Games, Grand Theft Auto, Mafia, Manhunt, Max Payne, Midnight Club,
Railroad Tycoon, Red Dead Revolver, Rockstar Games Presents Table Tennis, Sid Meier’s Civilization, Sid
Meier’s Pirates!, Sid Meier’s Railroads!, Smuggler’s Run, Spec Ops, The BIGS, The Darkness, and Top Spin.
We believe that content ownership facilitates our internal product development efforts and maximizes
profit potential. We attempt to protect our software and production techniques under copyright,
trademark and trade secret laws as well as through contractual restrictions on disclosure, copying and
distribution. Although we generally do not hold any patents, we obtain trademark and copyright
registrations for many of our products.
We also enter into content license agreements, such as those with sports leagues and players associations,
movie studios and performing talent, music labels and musicians. These licenses are typically limited to use
of the licensed rights in products for specific time periods. In addition, we license and include console
manufacturer technology in our products on a non-exclusive basis, which allows our games to be played on
their respective hardware systems.
Arrangements with Platform Manufacturers
We have entered into license agreements with Sony, Microsoft and Nintendo to develop and publish
software in North America, Europe and Australia. We are not required to obtain any licenses from
hardware manufacturers to develop titles for the PC.
Sony. Sony Computer Entertainment, Inc. grants us the right and license to develop, market, publish and
distribute software titles for the PS3, PS2 and PSP. We are required to submit products to Sony for
approval and to make royalty payments to Sony based on the number of units manufactured. In addition,
products for the PS3, PS2 and PSP are required to be manufactured by Sony approved manufacturers.
Microsoft. Under the terms of the license agreements that we have entered into with Microsoft
Corporation and its affiliates, Microsoft granted us the right and license to develop, market, publish and
distribute software titles for the Xbox 360 and Xbox. The agreements require us to submit products to
Microsoft for approval and for us to make royalty payments to Microsoft based on the number of units
manufactured. In addition, products for the Xbox 360 and Xbox are required to be manufactured by
Microsoft approved manufacturers.
Nintendo. Under the terms of the license agreements that we have entered into with Nintendo Co., Ltd.
and its affiliates, Nintendo granted us the right and license to develop, market, publish and distribute
software for Nintendo’s Wii, GameCube, DS and GBA. The agreements require us to submit products to
Nintendo for approval and for us to make royalty payments to Nintendo based on the number of units
manufactured. In addition, products for such platforms are required to be manufactured by Nintendo
approved manufacturers.
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