Using popular game intellectual properties (IPs) in arcade machines requires careful legal compliance to avoid copyright infringement. Licensing agreements are essential, and the process varies depending on the game's owner (e.g., Nintendo, Sega, or Capcom). Here’s what you need to know:

1. Identify the IP Owner: Contact the game’s publisher or developer to inquire about licensing opportunities. Major companies often have dedicated licensing departments.

2. Negotiate Terms: Licensing fees, royalties, and usage restrictions (e.g., territory, duration) must be agreed upon. Costs can range from hundreds to thousands of dollars.

3. Legal Documentation: A formal contract outlining rights, revenue sharing, and compliance with branding guidelines is mandatory.

4. Approval Process: Some IP owners require prototypes or design approvals before granting a license.

5. Ongoing Compliance: Regular audits may be conducted to ensure adherence to the agreement.

Failure to secure proper licensing can result in legal action, fines, or machine seizures. Always consult an IP attorney to navigate complex agreements. Popular arcade IPs like Pac-Man or Street Fighter have strict guidelines, so thorough research is crucial before investing in an arcade business.