[schobi]

I would expect that this leads to cases where the game is handed over to a shell company that goes bankrupt. The shell does not have the rights to all parts of the code and can thus release only part of it in a state that is useless. Some parts might have a weird license attached and so on.

Escrow or demonstration upfront will raise the bar before releasing new games in California.

[account42]

If the law requires the shell company to release the source code then they have to release it. The parent can then go and sue the shell company all they want for releasing things without license but that no longer involves the public.