Royalties when crowdfunding
Two questions about Crowd funding royalties with respect to EULA v12:
asked Oct 12 '17 at 09:29 AM in Legal & Licensing
On your first question, I'd read the royalty-bearing revenue on the tiers as follows:
And you're correct about "after the first $3000" in gross revenue.
On your second question, this is interesting. I would say that the royalties are due when received (on a quarterly basis) for a Product (as defined by the EULA). So if revenue is received for a product that may end up being UE4 or it may end up being another engine, that revenue wouldn't be recognized for royalty calculation purposes until it is determined that the money was received for a UE4 Product. But this approach runs the risk of misleading crowdfunding backers and/or leading to a much larger royalty bill when that revenue is recognized for royalty purposes (and note that the $3000 is on a quarterly basis - so it's better to spread out payments).
answered Oct 12 '17 at 02:48 PM
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