Hello,
I’m writing with regard to the 3000$ limit to pay royalties. We are a company, developing softwares for the industry.
We consider adding a 3D visualization module to one of our software, sold only once to one of our clients.
As this 3D module will not be charged for more than 3000$, but the entire
software will, do we need to pay royalties on the basis of the entire
software?
Under the EULA, the royalty is owed on the Product, and Product is defined as “any product developed under this Agreement that is made using the Licensed Technology or that combines the Licensed Technology with any other software or content, regardless of how much or little of the Licensed Technology is used.” I believe that means it covers the larger product. Where this comes up, it may make sense to investigate custom licensing.
That said, it sounds like you’re doing custom work-for-hire, since this is custom work for only one client. Your revenue for custom work-for-hire is royalty free. Note that the royalty obligations apply to your client’s use too though.