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So when am I supposed to pay Epic royalties?

Just want some clarification just in case if I'm understanding this wrong. On the Unreal Engine 4 Commercial Game Deployment Guidelines page, it says, "Once you've begun collecting money for your product, you'll need to track gross revenue and pay a 5% royalty on that amount after the first $3,000 per game per calendar quarter." So does this mean if I sold 30 units (90 bucks) in January, 20 units (60 bucks) in February and another 30 units (90 bucks) in March, I'll have sold 80 units, which is 240 bucks. I still have to pay them right? I don't need to make $3000 to start paying them in royalties? If so, what happens when I exceed $3000? Do I have to start paying them more than 5% in royalties?

Product Version: UE 4.19
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asked Dec 31 '18 at 05:01 PM in Legal & Licensing

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DaveDavey
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You do NOT owe royalties on the first $3,000 of each calendar quarter. So, if you only made $240 in the first quarter, you will not owe any royalties for that quarter.

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answered Dec 31 '18 at 05:27 PM

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SonsOfKorhal STAFF
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avatar image DaveDavey Dec 31 '18 at 05:30 PM

Ooooh okay. Thanks for clearing that up for me!

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