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Need help understanding royalties and commercial licenses.

Hi, I need help to understand royalties and commercial licenses.

The 5% royalties is taken after 3,000 dollars (or pounds as I am in the UK) but how do you know when I generate the income? Also, is the payment just once or more? I am very interest in the companies outcomes and would love to become an Indie developer. I may not even release my projects publically for sale but I would love to know about this questions first incase I make a game and cause trouble with royalties which I would hate to happen. Thank you any help. Hugely appreciated.

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asked Jan 08 '17 at 05:22 AM in Legal & Licensing

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Shadow101Super
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avatar image Shadow101Super Jan 08 '17 at 05:48 PM

Okay this is understandable thanks. However, if the income was to suddenly drop below $3000 (or set price in the UK) will royalties still be expected or are they put on hold until risen above $3000 again?

avatar image atypic STAFF Jan 08 '17 at 06:14 PM

There's no royalty or royalty reporting if the revenue drops to below $3K.

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$3000 per quarter is calculated in dollars not in your local currency. You can do a currency conversion if you need to.

When you say is royalty payment "just once" - the answer is that royalty calculation is done on a quarterly basis. So in every quarter in which your Product receives revenue, you must do a new royalty calculation. You can find more info on that here.

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answered Jan 08 '17 at 04:14 PM

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atypic STAFF
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