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Enterprise Training Development Royalty Form

My company builds e-learning software. We are using Unreal for multiple VR projects currently. When we get revenue for these projects I would expect the 5% Royalty to apply. We are happy to pay. What I am confused about is what would be the best method to report this.

The Royalty Report Form asks for things that either make no sense in our application or we don't have/are irrelevant.

Stuff like product name, release date, and number of units sold simply don't apply Our revenue is also not always applied to a single product

  • do we need to fill out the form for each project/statement of work/invoice

  • or do we need to fill out the form for each build we send out

  • sometimes we may take a product and rebrand it for a specific client

  • should non-final billing milestones be considered advances?

  • should gross revenue include stuff like us purchasing computers and VR headsets for the client (these are often in the same statement of work)

  • some of our training is for a local college for their students, does our client have to worry about royalties?

  • we might also sell proctored training in the future

I don't mean to ramble I just want to make sure I am doing everything correctly.

At what point, revenue wise, would it make sense to look at a custom licence (even at the exact same rate and schedule) to simplify this?

Product Version: UE 4.21
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asked Jan 03 '19 at 01:37 PM in Legal & Licensing

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jdell-icom
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Hi there. Can you provide more context on your revenue model? Are you receiving payments for the software itself? Or work done using the software? How do your clients use/distribute the software?

If you are only engaged in developing custom products for other business entities, you may want to explore our Unreal Studio offering (https://www.unrealengine.com/en-US/faq?active=enterprise), which has no royalty obligations.

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answered Jan 04 '19 at 08:30 PM

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SonsOfKorhal STAFF
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avatar image jdell-icom Jan 04 '19 at 09:21 PM

Sure,

Revenue Model: We are paid by a client to develop simulations for them. We are being paid for the development (planning, design, 3d, programming, etc..). Also sometimes setup/training how to use the software/hardware is included.

What payment is for: We are not being paid for work done using the software (no per seat costs).

How it is used/distributed: our clients will setup workstations to use the software for their employees (or students in the case of the college)

I did look through Unreal Studio. It seems like it probably applies to us I just don't want to risk anything.

Hope that Helps - Jon

avatar image SonsOfKorhal STAFF Jan 04 '19 at 10:21 PM

Jon, thanks for the clear response. It sounds like the Unreal Studio EULA will suit your needs. Please be sure to read the Studio EULA (https://www.unrealengine.com/en-US/studio/eula), particularly Section 1(A)(b), carefully. Please note that you can only distribute object code to your clients (unless they are engine licensees) and that your clients may not in turn distribute the Product. They can, however, use, display, and publicly perform it, for example, at location-based workstations.

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