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Is the royalty only 5% per project?

If I work with 2 other licensees on a single project and we each have our own subscription agreement, do we pay 5% for the single project or 15% combined since we each have our own license??

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asked Mar 20 '14 at 01:04 AM in Legal & Licensing

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DarkPsyker
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5 answers: sort voted first

The royalty is 5% of the gross revenue from product sales to users, regardless of the number of developers working on it. E.g. If 3 developers work on the product, the royalty is still 5% and not 3*5% = 15%.

If the product is developed by a company, the company is responsible for paying the royalty. If it's developed by a group of users, the user who is responsible for distributing the product (e.g. by uploading it to the App Store) should pay the royalty on behalf of the group.

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answered Mar 20 '14 at 04:26 AM

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Tim Sweeney STAFF
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It's 5 percent gross earnings, meaning if you make 100 dollars from a product Epic gets 5 dollars. Carefully read the section that talks about it.

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answered Mar 20 '14 at 01:13 AM

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Psoeter
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Yes, I understand that, but how does it work with a small team? Since we each have to have our own license are we each responsible for 5%, so if 3 of us are working on the same project would it be 15%, or can three seperate licensees work on the same product for 5% gross earnings? The way it's stated it seems to be per individual license.

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answered Mar 20 '14 at 02:42 AM

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DarkPsyker
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The royalties are based on 5% per title on the platforms listed in the license agreement.

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answered Mar 20 '14 at 02:51 AM

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pdriggett
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Awesome, thanks for the clarification Tim! It was not entirely clear in EULA in regards to teams of individual licensees working on the same project. ..

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answered Mar 20 '14 at 05:33 AM

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DarkPsyker
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