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Do I need to pay royalties for a free game for paying subscribers?

Hi,

I'm going to pitch a game idea to a business owner. He has a membership site and people pay a monthly fee to access.

The game is going to be free but it will only be distributed to paying subscribers.

I need to know if he'd have to pay royalties or not because depending on that I may change my pitch.

Thanks.

Product Version: UE 4.13
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asked Jan 25 '17 at 02:30 PM in Legal & Licensing

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masterneme
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Yes, I believe royalties would be owed in that circumstances. The rationale is that the game can only be accessed by paying a fee. Determining how much of the fee should be allocated to your game sounds like a challenge, but perhaps something that could be worked out with our Finance department.

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answered Jan 25 '17 at 02:59 PM

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atypic STAFF
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avatar image masterneme Jan 25 '17 at 05:31 PM

That's what I thought because on the EULA/FAQ it says:

Are any revenue sources royalty-free? Yes! The following revenue sources are royalty-free:

Truly free games and apps (with no associated revenue).

And it can't be truly free if it's behind some paywall.

OK now, if the game costs X he would have to pay royalties just from that X, right?

avatar image atypic STAFF Jan 25 '17 at 05:47 PM

OK now, if the game costs X he would have to pay royalties just from that X, right?

Right

avatar image masterneme Jan 25 '17 at 06:07 PM

Great, thanks!

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