Hello everyone,
I didn’t use the engine yet, but I read that unreal needs 5% royalties, so I didn’t understand how this process will take place ,should I pay the royalties by myself? or unreal will take them in some other way.
You pay them yourself.
Okay thanks for the reply.
That’s correct. You’ll pay the royalty fees directly to Epic Games, based upon each commercial title you release. This, only happens after you earn more than $3,000. This is explained below:
"Generally, you are obligated to pay to Epic 5% of all gross revenue after the first $3,000 per game or application per calendar quarter, regardless of what company collects the revenue. For example, if your product earns $10 from sales on the App Store, the royalty due is $0.50 (5% of $10), even though you would receive roughly $7 from Apple after they deduct their distribution fee of roughly $3 (30% of $10).
Royalty payments are due 45 days after the close of each calendar quarter. Along with the payment, you must send a royalty report on a per-product basis."
Further information can be found on this here: Richtlinien für die Veröffentlichung und Lizenzgebührennachverfolgung - Unreal Engine
Thanks you made this very clear , by the way do you know what should be included in the royalty report.
So if the game is free but has( in app billing service and powered by ads ), what should I say then about the game price in the royalty report.
Price is something that’s requested in the release notification - you could list $0 or free-to-play - but the royalty report itself (further down that page) doesn’t ask for price but rather asks for gross revenue.
Okay then in the royalty report I must state( how much the game is making),
but I still have a question ,so lets say my game made $1,000 after the first calendar quarter and as this amount is less than $3,000 then no royalty fees are recommended .
So I can spend the $1,000 and then wait for the next calendar quarter to pass and if this time the money is more than $3,000 I must pay the 5% fee , okay then I wait for another quarter to pass and if this time the amount is less than $3,000 (should I pay a 5% or not) this is the question.
There is no obligation to submit a royalty report when no royalties are owed.
That’s correct
You only file a report (and pay royalties) in calendar quarters where your revenue for that game exceeds $3000.
I mean each calendar quarter is independent of the other( whatever money each quarter is making).
Okay thanks canon you have been very helpful.