Content provider's Royalties

I apologize if this has been answered already.
I am developing a virtual reality simulator based on a motion simulator.
It is similar to an arcade game machine and an amusement ride.
We will update the content online and the content will be supplied by the content providers.
The simulator user pays fee and uses simulator.
The fee paid by the simulator user is shared between the store owner and us and the content provider.
Because, the fees include real estate costs, simulator production costs, and content production costs.
If the total price is $ 10 and the store owner takes $ 4, Simulator developer takes $ 3, content provider takes $ 3,
Does the content providers only pay royalties for $ 3?
it’s not 100% clear to us.

Thank you in advance for your answer.

Hi There,

Great question. We get this quite a bit the professional custom licensing side of the house. The truth is it’s a bit blurry. To help see our way through it we’ve gone with a classic approach. Webster’s Dictionary. :slight_smile:

Theme Park, Noun, an amusement park in which the structures and settings are based on a central theme.

If the device is installed in a non-Theme Park store, it’s an arcade machine.

Hope that helps. Please let me know if I can be of further assistance.

All the best,
-j

Thank you for your kind reply.
If the simulator belongs to an arcade machine.
Does the content providers only pay royalties for $ 3?

I have one more question.
We are considering making the UI of the simulator with Unreal engine.
The function of the UI is simply to describe and select the content.
Do I have to pay royalties for the UI?

Thank you Truffle muffin : )

It’s not clear how the arcade machine is sold. Is it sold with hardware and software bundled? Or are they sold separately?

Our simulator runs a variety of games on one machine.
It works not only with games made with Unreal Engine, but with games made with Unity3D, Cry, and other engines.
The simulator is sold with the UI program installed.
The UI installed in the simulator only functions to select a game

I have two questions.

  1. If the simulator is installed free of charge and the usage fee is divided between the store owner, the simulator maker and the content developer, should the content developer only pay royalties for $3?

  2. If the UI is built with the Unreal Engine, what are the criteria for royalties?
    If we have to pay royalties, we will make UI with other game engine.

On your first question, we are assuming that the hardware is free of charge. The EULA royalty reaches gross revenue rather than just the developer’s cut, so it would reach the full $10. If you want to negotiate a custom license, you may inquire here.

On your second question, the EULA makes no distinction as to how Unreal Engine is used. If you use it, royalties are owed.