Hi I am wondering a license type for this commercial scenario. As an example I’ve created a simulation using UE4 and sold it for 1$ to someone else then they put the simulation to their product (like a console with some hardware, monitors and input devices…etc - a custom simulation console which is their product) then they sold for each of them 1$. So, who pays UE4’s %5 share? Me, them or both of us? If they must pay too then what percent of it? Because their product includes many things (hardware…etc)?
As more clear example let say I’ve manufactured a mobile phone and I created a game using UE4 then I put my game to my mobile phone products. I’ve sold many mobile phones. What is the licensing issue for this situation?
Hi ,
In the described scenario of distributing a cellphone with a UE4 game on it, the product is the hardware/software combination, royalties are owed on the product.
Though work for hire fees aren’t royalty bearing, someone along the line is responsible for royalties on sales of a product containing UE4 applications. In that scenario, you may want to consider getting a custom license to avoid the royalty. A custom license would require a large upfront payment however. Please let me know if that helps you or if you have any other questions.
Thanks for the answer. I understand. But what if the software and hardware is from the same source. As an example, I am the owner both of the software and the hardware parts. I don’t understand how can we calculate Epic’s share. I want to calculate the cost of this situation because we want to create a product which contains a virtual sim and hardware devices. We want to use UE4 but…
Hi ,
We’ve encountered this situation in the past in our custom license business. We solved it by setting up a simple calculation to extract the base software value from the entire project. The equation is:
Software value = Total Project Revenue - Hardware cost.
Hope this helps,
-j