Using third-party intellectual properties (IPs) in arcade game machines requires careful adherence to licensing agreements to avoid legal issues. Here’s what you need to know:

1. Permission from IP Owners: You must obtain explicit permission from the IP holder, whether it’s a character, brand, or copyrighted content. This often involves negotiating a licensing agreement.

2. Licensing Fees: Most IP owners charge licensing fees, which can vary based on the popularity of the IP, duration of use, and distribution scope.

3. Compliance with Terms: Licensing agreements may include restrictions on how the IP is used, such as modifications, geographic distribution, or exclusivity clauses.

4. Trademark and Copyright Laws: Ensure compliance with local and international laws to avoid infringement penalties. Some jurisdictions require additional permits.

5. Royalty Payments: Some agreements mandate ongoing royalty payments based on revenue generated from the arcade game.

Always consult a legal expert to draft or review licensing contracts to protect your business and ensure full compliance. Proper licensing not only avoids lawsuits but also enhances your game’s credibility and appeal.