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Question about licence/custom licence

Hi, I've been asking this question multiple times over the last 2 years, and not getting a direct and clear response.

I would like to use unreal engine to provide my clients with standalone apps, not for any app store. However, the income generated from these will surpass $3000.

Lets say that i am creating a VR app in unreal for a simulator for company X. Company X has hired me to create this and will pay me for it. This app, will always remain internal to company X OR will be used at an event to show to their customers (again, only one system running the app).

In this scenario, do i need a custom licence? I dont believe the 5% royalties applies here, does it?

Please let me know at the earliest, as i will have to adjust my quotation accordingly.

Thank you.

Product Version: UE 4.17
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asked May 02 '18 at 08:33 PM in Legal & Licensing

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avatar image DudleyStephens ♦♦ STAFF May 04 '18 at 01:50 AM

Hi Hereafter. Thanks for your question. Is the app you are making a custom work for hire made specifically for company X?

avatar image Hereafter Feb 18 '19 at 05:39 PM

Hi Dudley, almost an year later, hope you are still there. This answer went unnoticed.

Yes, you are correct.

avatar image SonsOfKorhal STAFF Feb 19 '19 at 03:29 AM

To sum up and clarify your comments in this thread, you own Company Y, and Company Y will be developing a custom work for hire app made specifically for Company X, correct? In that case, Company Y will not owe royalties for the fees received for developing the app. You do not need to use Company X's license.

avatar image Hereafter Feb 19 '19 at 01:42 PM

Im assuming you meant "You do need to use Company X's license. "

Now, what if Company X has no license. There are 3 scenarios here: 1) Company X is selling the game on one of the stores. 2) Company X will never sell the game, but use it for advertising purposes/free app on app store/used at an event at a tradeshow 3) Company X will rent out the app to Company Z (which also belongs to Company X) for a month during tradeshows.

Also, we are now getting into putting up paid apps on the app store. I'd like to know how one pays royalties to Epic anyway.

avatar image SonsOfKorhal STAFF Feb 19 '19 at 02:20 PM

Company Y can develop and deliver the custom app to Company X under Company Y's own license. Company Y does not need to use Company X's license, and Company Y will not owe royalties for the fees for developing the custom app.

Company X will need a license to sell or distribute the app, whether for free or otherwise. Company X will owe royalties for revenues collected from the app. Instructions for paying royalties can be found here: https://www.unrealengine.com/en-US/release

avatar image Hereafter Feb 19 '19 at 02:36 PM

Thanks for the response. Along with that, could you also tell me what i can tell Company X as to the expectations? The app would be distributed locally through download links and wont be on any store. It would also be distributed mostly to different global branches of Company X. For revenue collected if any, would they need to apply for a custom licence?

avatar image SonsOfKorhal STAFF Feb 19 '19 at 02:48 PM

They wouldn't need to apply for a custom license. They can operate under the UE4 EULA.

avatar image notyetmad Feb 18 '19 at 09:23 PM

I am newbie my self, but in your case why not just use company EPIC account and let company deal with EPIC licencing.

avatar image Hereafter Feb 18 '19 at 10:11 PM

I own the company and we are a small team

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1 answer: sort voted first

Fill out this form and they should be able to tell you an appropriate answer. https://www.unrealengine.com/en-US/custom-licensing. However, I'm not an attorney so this isn't legal advice, but an observation. You'll have to pay 5% once revenue is over $3,000 since that's pretty clear in the EULA (since you're selling it to someone). Read more here https://www.unrealengine.com/en-US/faq .

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answered May 02 '18 at 08:46 PM

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avatar image Hereafter May 03 '18 at 05:25 AM

Thanks! That helped!

avatar image Hereafter May 11 '18 at 10:14 AM

So, I've filled out the form, sent multiple emails, tweeted and Facebook, but still no response from Epic. Can someone from Epic please chime in here. Need to know how to get a custom license, and if payment is required, how to do that. More so, i need to know these things asap as every client has a deadline. Please guys. Somebody. Anybody.

avatar image Hereafter May 11 '18 at 10:19 AM

Have just sent another inquiry.

avatar image trdwll May 11 '18 at 06:51 PM

DudleyStephens has commented above. Reply there to notify them so you can talk to a staff member.

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