Commercial deployment guidelines

Good evening,
we are working on two VR projects, in public and private field.
For the first project (public field), we have proposed the reconstruction of the areas affected by finds of archaeological interest, in three different eras: Cretaceous, Prime rural civilization , Middle Age.
It will be set up a museum where it will be possible paying a ticket view these settings.
Is this installation royalty free?
For the second project(private field), we proposed to an amusement park the development of a virtual reality-based attraction.
We’ll realize 6 game stations with Oculus Rift + OCULUS TOUCH, and we are developing a game called “Attacco Alieno” that also uses content from marketplace. We have established that the license will cost 400 euros (excluding VAT), and we will sell at this amusement park 6 licenses in this first phase of the project (2400 Euros, excluding VAT). It is not excluded that the amusement park may require the installation of other gaming places and then we will sell more licenses of the game.
We plan to resell this game only to amusement parks.
Is this second project royalty free ?
Have I to fill Notification of UE4 Project Release Form ?

Thank you
Giuseppe Cornacchia

The museum installation, as you describe it, would be royalty free.

For the other one, it sounds like an arcade game at an amusement park (rather than a “ride”). Is that correct?

In either case, you should still report release.

Yes it’s correct.
We have offered to amusement park a contract for hardware supply, hardware and software installation, training. Is this work royalty free ? The amusement park has to pay royalty ?
Thank you

Amusement park rides are royalty free, but arcade machines that happen to be at an amusement park are not royalty free. So revenue associated with the arcade machines would be subject to the royalty.

Unreal Engine Eula speaks about gross revenue. Does gross revenue include VAT, if yes also in case we pay the full VAT amount to the State ?

Thank you

Good question - under the EULA, the royalty on gross revenue does not include VAT. So if your retail price includes VAT, you are permitted to deduct VAT amounts before calculating royalty.

Thank you atypic.
So, as under the EULA: However, no royalty is owed on the following forms of revenue:The first $3,000.00 in gross revenue for each Product per calendar quarter.
And, if gross revenue is less than $3000 in a given quarter, then you don’t need to file a royalty report. Is it correct ?

That’s correct (although Product doesn’t mean each arcade machine, but rather that kind of machine).

OK you’re right. At this regard I wanted to rectify my earlier statement.
To be clear in our case, the hardware will not be an arcade machine in the sense of a machine where you have to put money to play, created by transforming and assembling products but a simple PC + Oculus, where visitors to the amusement park can have a free gaming experience (not for money) with the software. For this I think that the royalties should only relate to the revenue derived from the software. To be clear we could sell the software to anyone who owns a PC, in the same way the amusement park could buy only the software from us and to buy hardware elsewhere

I agree with your rationale based on the facts you lay out.