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Licensing for Sales to Government Organizations


As an academic research institution we've been developing a UE4 based application for bridge inspections, intended to be used by state departments of transportation. Under our current contract the application would be distributed to the state funding that is funding us, and their contractors, at no cost. From what I understand this setup does not incur any licensing fees?

However, we are investigating the possibility of partnering with a commercial company for expanding the application to other state departments, to whom licensing for the application would be sold. (So government agencies and contractors are purchasing the application from a commercial entity). Under this new model would the 5% royalty fee apply or is it exempt because the end-users are still government agencies/contractors?


Product Version: UE 4.12
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asked Jun 16 '16 at 08:29 PM in Legal & Licensing

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Agreed in the first scenario there would be license fees or royalty.

And on the second scenario, the royalty would apply - there is no exemption for government agencies or government contractors.

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answered Jun 16 '16 at 08:31 PM

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atypic STAFF
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avatar image Naremus Jun 16 '16 at 08:36 PM

Thanks for the quick response. I had seen in an article something about government exemptions (https://www.unrealengine.com/news/soartech-partnership-government-military-applications) so I wanted to check if it applied.

avatar image atypic STAFF Jun 16 '16 at 08:38 PM

Soartech can provide custom engine licensing and support to government entities and contractors.

avatar image mcmorley99 Jun 23 '16 at 06:32 PM

Would the 5% royalty still apply if the organization that is developing/distributing is a non-profit itself, consisting of a consortium of members that belong to government and academic institutions throughout the country? The idea is that they all pitch in to develop, support, maintain and would be distributing to other non-profits (municipalities, state govts, etc..?) with user fees plowed back into feature development, enhancements, and user support.

Thanks, Mike

avatar image atypic STAFF Jun 23 '16 at 06:54 PM

There is no exemption on royalties for non-profit organizations.

avatar image mcmorley99 Jun 23 '16 at 08:36 PM

Okay - Thanks for quick response !

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