From the FAQ -
''Are any revenue sources royalty-free? Yes! The following revenue sources are royalty-free:
Ancillary products, including t-shirts, CDs, plushies, action figures and books. The exception is items with embedded data or information, such as QR codes, that affect the operation of the product.
Consulting and work-for-hire services using the engine. This applies to architects using the engine to create visualizations as well as consultants receiving a development fee.
Non-interactive linear media, including movies, animated films and cartoons distributed as video.
Amusement park rides and live installations.
Truly free games and apps (with no associated revenue).
I Need Clarification on this specific subject -
Does the Royalty Fee still applies if I create a custom game using the Engine according to the requirements of a Client on a outsource/freelance website and inform the client about the license/royalty agreement of Unreal Engine and get paid a fixed amount for working on the project and transfer the project to the client, Do I still owe Epic any royalty from the revenue that may or may not be generated by said project in the future by the client ?
Please clarify if these statements are correct - Any work done using the Engine for a Client and transferring the project files to the client and getting paid a fixed amount is not considered selling a product but rather a service and this kind of services are exempt from royalties since they are considered 'Work For Hire' and any royalty due on the revenue that may be generated using the said project should be the sole responsibility of the client since the freelance contractor only sold his/her services rather than a product.
Feb 21 '18 at 08:28 AM
in Legal & Licensing