Royalties and User Generated Content Store
If a game developer were to make a game with UE4 and then provide a marketplace where players could sell user generated content to each other for that game specifically, with the game developer getting a cut of each purchase (e.g., Valve's TF2), how would the license and royalties be determined?
Or put another way, given the below definition from the EULA, is user generated content considered "Product", assuming it does not use any UE tools or anything else requiring that the player agree to the UE4 license? Since the content would not be "developed under this agreement", it seems like it would not be a Product in the eyes of the license, but I'm not entirely clear if that's accurate.
“Product” means any product developed under this Agreement that combines any Licensed Technology with any other software or content, regardless of how much or little of the Licensed Technology is used.
Let's say a player makes a map using only tools provided by the game developer, and sells it on the game developer's marketplace for $2. The game developer takes a 25% cut of each purchase (22% after payment processing fees are considered). 10,000 players purchase the map, which results in a total of $20,000 transferred, with $5,000 going to the developer ($4,400 after fees), and $15,000 going to the map maker.
Regardless of who pays Epic, how much total would Epic be owed in this case?
I presume 5% of $4,400 is not relevant, since that would be net profit, not gross revenue. Similarly for 5% of the map maker's $15,000.
If the answer is the third bullet point, then a further question is if the game developer can require that the map maker be responsible for acquiring his or her own UE4 license and and paying any royalty fees (based on the full price of $2 per purchase, subject to the $3,000 quarterly minimum according to the map maker's personal profits), if the game developer can split the royalty responsibility with the map maker 25/75, or if the game developer must be fully responsible for all $1,000 owed to Epic.
You've asked a very interesting, nuanced question! Assuming you are distributing to the general public, here are some initial points:
Now answering your questions specifically:
Now if the game is only distributed to other UE4 licensees (which I presume is not the case), things are a little different. For one, there is no restriction on use of the editor. And two, no royalties are owed on revenue from a product which is only distributed to other UE4 licensees.
answered Jun 04 '14 at 02:50 AM
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