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How Epic Games track the 5% payment ?

Hi, as I got , Epic Games will collect 5% from the gross revenue of any product that exceeds the 3000 USD, is this right ? now how you will be able to calculate this numbers ? and what if the developer did not pay this 5% ? and how could you track his real accounting system , he maybe have hidden payments so you can see he get the 3000 USD but in real it was only 2000 $ , this need more clarification to decide if I will use your great engine to check for another one ...


Product Version: UE 4.10
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asked Feb 03 '16 at 05:13 PM in Legal & Licensing

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I'm not sure that I understand all of your questions. You are correct that royalties are owed for each Product under the EULA at a rate of 5% of all gross revenue for that Product within a calendar quarter after the first US$3,000 for that Product.

You ask how it is calculated. Gross revenue means all revenue for that product. If it's sold for $5 on Steam, then $5 is the gross revenue for each sale.

Each licensee makes a contractual promise by agreeing to the EULA to pay all royalties due to Epic; this is the licensee's legal obligation.

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answered Feb 03 '16 at 05:40 PM

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atypic STAFF
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avatar image tmg_2000 Feb 03 '16 at 08:09 PM

and what about the tracking mechanism ?

avatar image atypic STAFF Feb 03 '16 at 08:18 PM

You report your revenue and royalties to Epic on a quarterly basis.

avatar image CrimzonOdyssey Mar 19 '16 at 07:46 AM

Hi, sorry to bring up old things, but this caught my attention, and had some questions similar to this post, I understand the whole 5% after $3,000 USD every quarterly, but, if I had, let's say 10 games selling, would I have to send in 10 separate reports, or one, just listing each game with revenue on each on one report? also if a game in 10 years randomly sold again (hypothetical) and I didn't realize it sold over 3000 in a quarter, would I be notified by Epic games that I need to send in a report if not within the 45 days? or would I get in trouble? or would none of the above happen? sorry if this is all over the place, but I just want to fully understand the license, so nothing bad happens, if I release a game with Unreal engine 4.

avatar image ahuss Mar 19 '16 at 04:26 PM

i doubt you'd get into trouble at all if you didnt report a sale 10 years after release. with the above example of $5 it would be 25 cents. most likely after 10 years or even 5 it would be sold on ebay or something, but if it was sold through a retailer brand new, then you would be expected to know about it as the only way to get to retailer would be through your distribution method. also id expect epic to only care about games sold brand new

avatar image CrimzonOdyssey Mar 19 '16 at 04:53 PM

Thanks for the reply, so I guess with Game analytics, to track my game, I wouldn't loose track of when it made money and how much even several years after release, I just wanted to be 100% certain I understand all aspects of the license.

avatar image atypic STAFF Mar 19 '16 at 05:09 PM

You can send ten different reports or one report dealing with all games. Eventually we'll have online form reporting to make it easier.

For a game that sold again ten years later, I assume you'd know about it because you'd be receiving money for it.

avatar image CrimzonOdyssey Mar 19 '16 at 05:13 PM

Thanks for the reply, I never released a game yet, so I wasn't sure how the tracking income would work, I guess it's easier than I have been thinking

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