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In app non-software purchases

I was thinking that UE4 might be a way to do an attractive ecommerce store for mobile devices. If UE4 is used this way and users are not ever buying software, only real physical goods like clothing, is there any percentage due?

Product Version: UE 4.8
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asked Jul 21 '15 at 05:48 AM in Legal & Licensing

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Smith389238
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Under the EULA, royalties are owed on gross revenue "attributable to the Product," but in this case, since the revenue is going to real world, physical goods (rather than some form of in-product or otherwise digital benefit), we can say that this revenue is not attributable to the Product under the meaning of the EULA. In short, no royalty!

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answered Jul 22 '15 at 02:52 AM

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atypic STAFF
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avatar image Smith389238 Jul 29 '15 at 07:46 AM

Great! Thanks for the clarification

avatar image avisidhu May 09 '17 at 12:33 PM

Now assuming a number of brands want to sell their goods through this ecommerce store and the developers charge these brands a fee to 'virtualize' their goods (3d modeling or scanning them into the app, then packaging them as dlcs). Would royalty be due on this 'virtualization' fee?

avatar image atypic STAFF May 09 '17 at 02:14 PM

It sounds like you're talking about custom work-for-hire where you would take a physical good of a single client and virtualize it (for a fee). In that case the work-for-hire fees would be royalty free. If the virtual items are sold to customers, that revenue is subject to the royalty.

avatar image avisidhu May 09 '17 at 04:01 PM

Exactly. It is custom work for hire but can be for multiple clients. Secondly the virtual items will not be sold, they'll be available for free to view. But people can place orders to buy the real physical items.

avatar image atypic STAFF May 09 '17 at 04:13 PM

Ok - sounds like my understanding was correct.

avatar image avisidhu May 09 '17 at 04:27 PM

So no royalty for this use case... right?

avatar image atypic STAFF May 09 '17 at 05:31 PM

Correct, based on your description

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