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Question about the 5% loyalty, UE4 vs UDK,Does the royalty apply to games that are making a small amount of money, but aren't hitting $50k gross?

I find UE4 extremely appealing and am leaning towards subscribing and ditching UDK. The enticing thing to start with UDK is that you can potentially make money from small apps/games without paying the royalty, however the EULA for UE4 does not mention a minimum gross before applying the royalty. Does Epic games require this loyalty for even small amounts of gross revenue?

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asked Mar 22 '14 at 10:51 AM in Legal & Licensing

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2 answers: sort voted first

This question is in part a duplication and Tim Sweeney has it on his radar already. So I propose you monitor it


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answered Mar 22 '14 at 10:55 AM

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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 03:08 PM

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Tim Sweeney STAFF
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