What if my product obtains crowdfunding via Kickstarter or another source?
Royalties are due on revenue from Kickstarter or other crowdfunding sources when the revenue is actually attributable to your product, for example if the user is required to purchase a particular funding package to obtain access (now or later) to your product, or if that package gives the buyer benefits within the product such as in-game items or virtual currency.
Here’s an example of what we mean by “attributable”: Assume you provide two tiers of offers, a signed poster for $20, and a signed poster plus game access for $50. No royalties are due on ancillary products like posters, so no royalty is due on the $20 tier. On the $50 tier, the user is paying for the poster with a $20 value, and that implies that the remaining $30 of value is attributable to the product. So, for each $50 tier sale, you’d pay a royalty of $1.50 (5% of $30).
Mar 24 '14 at 07:42 PM
Marc Audy STAFF