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Licensing of marketing Software

Hello,

a company contacted us to develop a marketing strategy.

We offered to make a software, which will be used in official showrooms via the HTC Vive to display and market the product in the HMD.

Do we have to pay the 5% royalty for products sold or for the cost of development?

Thank you very much!

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asked Jul 26 '17 at 11:16 AM in Legal & Licensing

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STUDIOHIRSCH
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avatar image atypic STAFF Jul 26 '17 at 01:49 PM

It sounds like you are talking about custom work-for-hire for a single client, where that work is directed by the client - is that correct? And the result of the work would not be sold, but it would be used to market another product?

avatar image STUDIOHIRSCH Jul 26 '17 at 01:52 PM

We are an agency so the work is directed by us but discussed with the client. The work (The VR-Product) would be used to market another product

avatar image atypic STAFF Jul 26 '17 at 01:54 PM

Custom work-for-hire fees are royalty free under the EULA. And since the product itself would not be sold, there is no other product revenue to be subject to a royalty.

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