Question On Royalty Fee
So I understand that there is a 5% Royalty Fee after the first $3000 per product per quarter. I apologize if this has already been asked and answered, I could not find any related questions.
My question is: Hypothetically speaking if I were to have built a full on video game of my own creation, and say wanted $50,00 per copy and sold say 300,000 Copies the first Quarter, I understand that the Royalty Fee would be $750,000 and say that's ALL I sold for the next 3 quarters. Does the 5% Royalty Fee apply to quarterly statements that have turned no profit? Is it a continual Royalty Fee because I made over $3000 from it?
Also, asking about this brings another question in mind, I believe the answer is no, but does the Royalty Fee apply to say Kickstarter Donations for funding?
asked Nov 17 '15 at 03:26 PM in Legal & Licensing
In the example you listed, $50 x 300K is $15M. But you get to ignore royalties on the first $3K, so you need to calculate royalties on $14,997,000. 5% of that is $749,850.
I think you're asking whether you need to submit royalty reports when there is no product revenue. Per the EULA,
In other words, no revenue means no reporting.
Your final question is about crowdfunding. You say crowdfunding donations, but to be clear here is what the EULA says about crowdfunding generally. Royalties are owed on the following:
So if it's truly a donation, there's no royalty.
answered Nov 17 '15 at 03:51 PM
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