Roblox Unveils Simplified IP Licensing System

Roblox has announced an ambitious goal to capture 10% of global gaming content revenue, and a crucial step towards this is the introduction of a streamlined IP licensing system. This platform allows outside firms to easily integrate their IPs into the Roblox ecosystem. Greg Hartrell, senior director of product management at Roblox, explains that the company is 'in striking distance' of achieving this goal within the next few years. The new licensing system is designed to enable users to create experiences based on various IPs, with a select set of IP holders, including Sega, Lionsgate, Netflix, and Kodansha, already on board. The process of adding an IP to the platform involves an onboarding process, where Roblox verifies ownership and ascertains the scope of the copyright, followed by the definition of a license for the use of the IP. Hartrell emphasizes that the tools allow for customization of the license, including setting a revenue share rate, content standards, and eligibility criteria, making it a straightforward process. The revenue share model allows IP holders to set a rate between 0% and 95%, with the option to monetize or not. The inaugural lineup of IPs includes some notable properties, such as Stranger Things and Squid Game, although some companies have been cautious in their initial offerings. Hartrell defends the choices, citing the example of Twilight, which has never been offered as a game license before. The platform allows IP holders to set age restrictions and eligibility standards, giving them control over how their IPs are used. If a user's content is deemed inappropriate, IP holders can issue takedown notices or require creators to conform to their content standards. The system is designed to be automated, with AI scanning and human moderation in place to monitor and moderate the use of IPs. From the user's perspective, they can browse the license catalogue, read the terms, and accept them, with the license manager reviewing and approving or rejecting the application. The process is significantly streamlined compared to traditional IP deals, which can take months to negotiate. Hartrell acknowledges that there may be concerns about the amount of work involved for IP holders but is confident that Roblox's tools will efficiently flag inappropriate applications. The company is working to scale the program, with the goal of eventually allowing any eligible IP holder to sign up. For now, the license manager is restricted to select companies that Roblox approaches, with the aim of working out the kinks and understanding how to further streamline the workflow.