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Need some clarification on the 5% royalty.

I list my games on gamejolt since its so nice, its almost like a steam page. Anyway the games are completely free to download and play, but they pay me 30% of ad revenue off my game to me. In 2 years I have made 78 cents. Do I have to fill out paperwork for 78 cents? You can have all 78 cents if you really want it. Is there some sort of threshold that I must first reach in order to start paying the royalty? I really dont feel like doing paperwork for 5% of 78 cents. here is an example of one of my gamejolt games: http://gamejolt.com/games/other/duality/23802/

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asked Mar 22 '14 at 05:04 AM in Legal & Licensing

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avatar image Cogent Apr 29 '14 at 04:16 AM

I am impressed with the direction UE4 and Epic are heading!

Thanks Tim for the clarification.

"Tim Sweeney STAFF" Staff! lol!

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4 answers: sort voted first

With the release of Unreal Engine version 4.1, we've updated the EULA to accommodate this low-revenue situation:

Now, the first $3000 of gross revenue per product per quarter is exempt from royalties. And, if gross revenue is less than $3000 in a given quarter, then you don't need to file a royalty report.

So, for example, if your game makes $2500 in a quarter, then you don't have to pay anything or file a report. If your game makes $4000, then the royalty due is $50, which is 5% of ($4000 minus $3000).

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answered Apr 24 '14 at 03:12 PM

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Tim Sweeney STAFF
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avatar image ibayibay1 Apr 24 '14 at 08:54 PM

Thank you so much for this! Thank you for addressing my relatively small concern and going so far to fix it. This is such a win for micro-indies and hobbyists alike. $3000 is also a very generous amount. I would have expected like 20 dollars!

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This seems silly, but as the license agreement is written you'd report that revenue via email and mail in 3 cents as payment. Eventually I hope we can have a more efficient mechanism to handle this case!

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answered Mar 22 '14 at 05:19 AM

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Tim Sweeney STAFF
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avatar image ibayibay1 Mar 22 '14 at 05:41 AM

Do you work at Unreal? and if so could you bring this up urgently? Do You have the CEOs number? I will call him up at 2AM. This is quite important for me.

avatar image SaxonRah Mar 22 '14 at 05:51 AM

He IS the CEO ;)

avatar image ibayibay1 Mar 22 '14 at 05:55 AM

I just googled his name. Man that is amazing. If there is anyone who can solve my issue, Its this guy. I hope he doesnt really want my 3 pennies. The stamp to mail it would cost me more.

avatar image Jacky Mar 22 '14 at 05:51 AM

You are kidding i guess?..

avatar image Ben85 Apr 24 '14 at 04:13 PM

The mental imagery of someone mailing in 3 cents made me laugh! :)

avatar image Isaac Nichols May 24 '14 at 09:21 PM

LOL! This is probably one of the best threads I have read on here :D


avatar image Jobran Feb 13 '15 at 02:56 PM

Well, I need to ask you a question Mr. Tim. What if I created a game using UE4 and it made a lot of money, but I gave you an amount of money which is less than 5% of the total gross revenue saying that amount of money is 5%, how will you find out that I lied?

avatar image MinxiesDev Feb 13 '15 at 04:34 PM

The following is no way pointing the finger at you, but at anyone who theoretically might do this...

It would count as fraud.

I would also see this as a "d*ck move", disrespectful and unappreciative of the great tools that Epic have blessed us with.

It would also be sticking it to the community, as money the fraudster keeps in their pocket could have otherwise gone to Epic to improve the tools for all of us.

If you suspect that this is happening, for your sake you should report it immediately to Epic.

avatar image Mobfolios May 01 '17 at 12:49 AM

...An audit

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Actually, if you receive 78 cents, that means that the game made $2.60. Therefore, you owe 13 cents, not 3. Remember that it is 5% of gross revenue, not what you receive.

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answered Mar 27 '14 at 04:42 AM

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