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Training Simulator Royalties...

I work for a company in a group of companies and I have been tasked with creating a Virtual Training Simulator for one of the other companies in the group that handles all the training.

The Virtual Training Simulator, basically simulates a branch and allows the clerks and managers to perform their normal daily branch tasks as well as access the test and training systems from inside the virtual branch while being exposed to a virtual branch and what happens in there.

The system will be deployed to the branches via a remote update system that I wrote but the Training company int he group will not be charged for the Simulator System itself. The Simulator System is an empty shell that uses a web-service to populate the virtual branch with other clerks and equipment and tasks and challenges. Instead the Training company will be charged for access to the system ... note that this is an internal charge amongst the group of companies.

I have read all the FAQs, and EULAs, and I am familiar with what systems must and don't have to pay royalties, but this seems like an edge case.

Will we have to pay royalties in this instance? Is this a case where we will need to negotiate a custom license?

Product Version: UE 4.13
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asked Sep 21 '16 at 01:59 PM in Legal & Licensing

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avatar image atypic STAFF Sep 21 '16 at 02:43 PM

This is a good question, but I think I need more information.

  • When you provide the simulator to the other companies, these other companies are separate and distinct corporate entities?

  • Is the simulator generic or customized on a company-by-company basis?

  • What does an "internal charge" mean?

  • Are you providing the editing tools to the other companies or just an executable (with web service)?

avatar image qdelpeche Sep 21 '16 at 02:51 PM

They are separate corporate entities of the same group.

It is customised specifically for the company as it has their branding in it and their processes and procedures built in to it.

Basically the one company invoices the other company but there is no actual charge for money due to the companies all being part of the same group.

It is a stand-alone executable that will be deployed by us on to their terminals at the physical branches. They will never have access to the physical executables or the editors. This executable talks to a web-service that I control.

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I believe this is royalty free. Because the product is customized for each "customer" I consider this work-for-hire, and revenue for work-for-hire is royalty free under the EULA.

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answered Sep 21 '16 at 03:01 PM

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atypic STAFF
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