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Release notification and royalties - work-for-hire project

We are developing a product visualization application as a work-for-hire project for a single company as our customer. We will charge a one-time development fee based on our time and effort for the development of the product to the customer. The product will not generate any revenue. The product will be used by our customer for marketing purposes (e.g. on a tradeshow) and will not be sold.

Just to make everything clear- is it correct that the following applies:

  1. We would have to make a release notification to Epic when we make the final product available to our customer.

  2. Since there will be no royalties, we would not have to submit any royalty reports.

Thank you and regards.

Product Version: UE 4.15
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asked Mar 08 '17 at 01:59 PM in Legal & Licensing

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revis3d
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3 answers: sort voted first

Based on the scenario you outline, your summary is correct.

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answered Mar 08 '17 at 03:47 PM

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atypic STAFF
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Does our customer have to be Engine licensee? As far as I have read from other posts in this forum this is optional.

Which form of distribution under the EULA would apply if we want to distribute the product in object code to our customer? How is "end user" defined? Would the distribution in object code make our customer "end user" in our scenario? As far as we understand it, end users would be users who buy the product in the marketplace or off-shelve in a store in contrast to our scenario. Please clarify.

The EULA states that a release notification would have to be made either if we "generate revenue from a Product or Distribute it to end users". How does this apply if we do not generate revenue and our customer is not "end user"?

Thank you a regards.

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answered Mar 22 '17 at 12:12 PM

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revis3d
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avatar image atypic STAFF Mar 22 '17 at 02:16 PM

If you're not sharing source code, but rather a final executable, your customer doesn't have to be an engine licensee.

If the Product will ever be available to the general public, rather than just a specific customer, you would notice release. If it's just to a specific customer, and they don't go and make it available to the general public, you don't have to notice release.

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Within this scenario, given a product will only be available to a specific customer, is there any limitation on how the product is invoiced to the customer? Can we also charge the customer a monthly fee for usage?

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answered Jul 05 '17 at 01:58 PM

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revis3d
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avatar image atypic STAFF Jul 05 '17 at 02:06 PM

Epic wouldn't get in the way of that - you can make whatever arrangement works best.

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