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Company investment money considered royalty?

Hello Team,

I have been looking through the EULA and there is one thing that I am not fully clear on understanding with royalties in mind.

You agree to pay Epic a royalty equal to 5% of all worldwide gross revenue actually attributable to each Product, regardless of whether that revenue is received by you or any other person or legal entity, as follows:

These portions:

e. Revenue from advance payments for a Product (from a publisher or otherwise); and

f. Revenue in any other form actually attributable to a Product (unless excluded below).

As I understand it, seed investment isn't income as it's equity in the company as opposed to revenue.

If this is correct, then company investment shouldn't be considered when putting together documents for royalty payments to Epic.

Could you clarify this for me?

Regards,

Anthony

Product Version: UE 4.19
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asked Jul 11 '18 at 01:57 PM in Legal & Licensing

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redderick
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Assuming the investment money goes towards acquiring equity in your company, no royalty is owed on that.

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answered Jul 11 '18 at 02:47 PM

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atypic STAFF
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