Roblox Opens Up Official IP Licensing to UGC Creators

Roblox has officially entered a new era of user-generated content - and this time, it’s licensed.

Roblox launched a first-of-its-kind licensing platform that lets developers build games using some of the world’s most recognizable entertainment franchises, fully backed by IP rights holders. This is a very interesting shift, and it lowers the legal and technical barriers for creating branded content on Roblox.

No more figuring out if you are doing an homage or you're violating copyright . With the launch of Roblox License Manager and the Licenses Catalog, creators finally have a legit, scalable way to collaborate with entertainment giants - and get paid for it.

Why is IP Access Important?

In gaming, IP - short for intellectual property - refers to the rights surrounding creative assets like characters, stories, logos, settings, and other recognizable elements from games, shows, movies, or books. Until now, using these in fan-made projects has been risky territory. Without official approval, even well-meaning tributes could face takedowns or legal threats. That’s why this move by Roblox is so significant. For the first time, everyday developers can legally build and monetize games using top-tier IP from global franchises. 

IP at Scale, Finally Within Reach

At launch, Roblox has signed licensing deals with Netflix, Lionsgate, Sega, and Kodansha. That means eligible developers can now apply to build experiences based on Stranger Things, Squid Game, Twilight, Saw, Now You See Me, Divergent, and Sega’s Like a Dragon series (aka Yakuza). Kodansha will soon add manga hits like Blue Lock and That Time I Got Reincarnated as a Slime to the catalog as well.

The Roblox License Manager gives IP holders a way to manage, approve, and monetize licensed use of their properties at scale - and it gives developers a clear, streamlined path to legally incorporate those IPs into their games.

For creators, the process is now as simple as browsing the Licenses Catalog, applying for access to a specific IP, and — if approved — integrating it into your Roblox experience. No more endless back-and-forth with lawyers, no more legal grey zones, and no more takedowns for fan-inspired content. Depending on the IP, licensing approval can happen in a matter of hours or days - a huge improvement over the traditional months-long wait.

Who’s Eligible and What Do You Get?

Each IP comes with its own set of licensing terms. For example, Sega requires creators to have at least 1,000 daily active users before applying to use Like a Dragon. Netflix, on the other hand, has no user threshold but offers a lower revenue share: creators get 15% of Robux earnings on licensed Stranger Things or Squid Game experiences. In contrast, Sega’s revenue split is a generous 50% (after platform fees), making it an attractive target for larger creators.

Why Now?

Roblox isn’t just being generous. The company wants 10% of all global gaming content revenue to pass through the Roblox ecosystem. Creators on the platform earned $923 million in 2024, a 25% jump from $741 million in 2023. Roblox expects creator earnings to exceed $1 billion in 2025.

With over 97.8 million average daily active users (as of Q1 2025), most of them Gen Z, Roblox offers IP holders access to a massive, plugged-in audience. But the real power lies with the creators: small, agile teams who are already generating breakout hits and driving platform engagement.

Games like Grow a Garden have demonstrated just how massive a UGC game can scale when it captures the community’s imagination. The new licensing model turns that kind of breakout success into a two-way win: fans get immersive, IP-based content they love, and creators get a legit monetization path.

How can you Monetize IP Licensing on Roblox?

Balance Popularity with Payouts

Not all IPs are created equal when it comes to monetization. For example, Stranger Things and Squid Game from Netflix have broad appeal and low entry barriers (no user minimum), but they come with a modest 15% Robux revenue share. In contrast, Like a Dragon (Sega) requires at least 1,000 DAUs, but offers a 50% cut. If you’re confident you can meet the threshold, target high-yield IPs that offer better rev-share terms.

Build for the Fanbase - Not Just the Brand

A familiar franchise gets you visibility, but engagement comes from understanding the culture of the IP. If you’re using Saw or Twilight, lean into what fans actually love: lore, tone, iconic mechanics or aesthetics. The better your fanservice, the better your retention. If you are not knee-deep in the IP, you need to learn about it in order to understand the fanbase.

Stay Competitive but be Careful

Don’t treat the licensing terms like fine print. Read them closely. Each IP may have different content restrictions, monetization rules, and approval criteria. Staying compliant means you won’t waste dev time or risk takedowns. Better yet, knowing how the License Manager works gives you a competitive edge - if you move faster and smarter, you’ll be first to market with IP-based content when others are still applying.

Ride the IP Hype

When Roblox promotes a new IP launch (like Blue Lock or That Time I Got Reincarnated as a Slime), they often spotlight creator-made games using that IP. Time your releases to coincide with these windows. Being early can land you in editorial features, recommendation carousels, and trending lists — all of which drive massive organic traffic. It's free exposure that normally costs thousands in ad spend.

LootLabs
July 21, 2025