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Kickstarter Updates Terms of Use, Says Creators “Must Complete” Projects

September 21, 2014 Written by Zarmena Khan

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Right as a high-profile Kickstarted game Clang went kaput, Kickstarter updated its terms of use stating that creators “must complete the project and fulfill each reward.” Failing to do so may result in legal action by backers, it warns. 

This doesn’t mean that projects can’t fail, however. What Kickstarter means is that if projects don’t materialize, then creators have “failed to live up to the basic obligations” of their agreement. Therefore, they must have reasonable grounds for abandoning their work. If creators do not fulfill the following terms of use, they can be subject to legal action. 

– they post an update that explains what work has been done, how funds were used, and what prevents them from finishing the project as planned;
– they work diligently and in good faith to bring the project to the best possible conclusion in a timeframe that’s communicated to backers;
– they’re able to demonstrate that they’ve used funds appropriately and made every reasonable effort to complete the project as promised;
– they’ve been honest, and have made no material misrepresentations in their communication to backers; and
– they offer to return any remaining funds to backers who have not received their reward (in proportion to the amounts pledged), or else explain how those funds will be used to complete the project in some alternate form.

Do you think Kickstarter did the right thing?

[Source: Kickstarter via Gamasutra]