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My customer must pay royalties?


I need create a simple game for one customer, the price is near to 2500 € but the customer want to sell the game in play store and apple store. My company won't gain nothing with the sell of game in the stores, in the case of that my customer gain more than 3000$, does he have to pay royalties? And my company?

Product Version: UE 4.12
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asked Aug 25 '16 at 08:26 AM in Legal & Licensing

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avatar image sylvain_l Aug 25 '16 at 10:53 AM

not a lawyer nor epic staff. So take my comment "AS IS"

As I understand things. You are the licensee and the creator of the product. So from the EULA, that makes you responsible for the 5% royalty due for any revenue made with the product. (As for royalties, there is a 5% royalty on gross revenue that is generated from "all in-app purchases, downloadable content, microtransactions, subscriptions, or redemption of virtual currency, either within a Product or made externally but which directly affect the operation of the Product.")

best way to protect yourself, you should ensure your customer become a valid licensee AND have the contrat ensure he takes care of the licencee fees himself.

I can only recommend taking advise from a lawyer and get best advices from epic staff

avatar image atypic STAFF Aug 25 '16 at 01:49 PM

The above comment is exactly correct. Under the EULA, you will owe royalties even though you don't receive the game revenue. I would highly recommend that you require in your contract with your customer that your customer accept the EULA and take responsibility for royalties.

avatar image Symbiotiks Aug 26 '16 at 06:31 AM

thank you both for the help

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