EULA and royalty clarifications for possible situations
I've created an account at UnrealEngine.com, and the EULA raised some questions that I'm hoping you can provide clarification on.
I currently work for a large publisher. I saw the following on the FAQ page:
That seems fairly straightforward, but I want to ensure that my use is above board, given how fickle the future can be. For the below, I don't foresee any one option being the most or least likely. I just want to ensure I understand any possibilities, so that I can properly plan my use and adhere to expectations.
What if myself or others made something worthy of pitching to a publisher that uses a proprietary engine? Their expectation could be the full recreation of the content in another engine, either to maintain congruence across franchises or to avoid the 5% royalty. How would you view such a situation?
If development of a product is funded by a Publisher, does the royalty apply to the funds received by the developer, or to all revenue received by the Publisher?
Kickstarter and full products: As an example, say that a vertical slice of a standalone product was created for a Kickstarter campaign. The campaign is successfully funded, and 5% of the raised money is paid per the agreement. What if it was then determined that another engine (for whatever reason) was more suitable for full production, and ultimate release of the new product?
asked Jul 04 '16 at 04:34 PM in Legal & Licensing
It's fine with us to prototype in UE4. As for whether a royalty is owed, the answer depends on whether the actual end product was in part made with UE4. If you completely re-made the game in another engine, I would say no royalty is owed.
For a UE4 product, recoupable advances are considered royalty-bearing revenue. If the game were re-made in another engine entirely, then no royalty would apply.
Royalties are only owed on products that are made using the engine. If you sold a game not made in UE4 (in whole or in part), no royalties would be owed.
answered Jul 04 '16 at 09:04 PM
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