Royalties from Publisher payments
Here is the question:
It states in the EULA that:
"You agree to pay Epic a royalty equal to 5% of all worldwide gross revenue actually attributable to each Product, regardless of whether that revenue is received by you or any other person or legal entity, as follows: ... Revenue from advance payments for a Product (from a publisher or otherwise); and..."
But the FAQ says:
"What if my product is released through a publisher or distributor? - You’re free to release Unreal Engine products through a publisher or distributor, and the EULA gives you the right to sublicense the necessary parts of the Unreal Engine to them so they can release your game..."
So the question is, which is correct. If a studio is receiving Development costs from a publisher (as is often the case), do they have to pay royalties from the money they receive from the publisher for the development of the UE4 game prior to release.
Both are correct. The EULA grants you the rights necessary to sublicense the engine as embedded in your game which will permit a publisher/distributor to distribute the engine in your game. But, revenue associated with that distribution is still subject to royalty, which is the licensee's responsibility. In other words, you can sublicense the distribution right, but you don't get rid of the royalty obligation.
Steam is an example of a distributor. You need the right to sublicense distribution of the engine as embedded in the game to Steam in order for them to distribute it, and the EULA gives you that right. That distribution will generate revenue, and that's still your responsibility.
If you have a publisher, and that publisher is also a licensee, they can take over the royalty obligation if you and the publisher agree.
answered Apr 08 '15 at 02:52 PM
Follow this question
Once you sign in you will be able to subscribe for any updates here