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Are royalties applicable for Paid (licensed non-UE4) Marketplace Assets used in other Engines?

Hi, I have a question regarding the use of Marketplace-bought content and its use in other engines for commercial purposes. Just to clarify, I understand that a purchase from the Marketplace is actually a license of Digital Rights that is subject to the EULA.

My query really revolves around the ambiguity/omission from this statement from the "Marketplace FAQ":

 *"Any Marketplace products that have not been created by Epic Games can be used in other engines. Please note that products purchased from the Marketplace cannot be sold back to the Marketplace after alteration."*

Although i also noticed these two Answerhub answers from a UE4 staff member (both from 2015), to quote from one of them:

 *"There are two general types of Marketplace/Learning tab assets/content - the ones that are marked UE-Only and everything else. For the former, they can only be used in Unreal Engine. For the latter, you are permitted to use them in other engines. **However, under the EULA, the Licensed Technology definition includes Assets (which includes Marketplace content), so the royalty is still applicable.**"*

(SOURCE and also ANOTHER ONE)

The definition for "Licensed Technology" in the EULA then points to another definition for "Content", which states:

 *"'Content' means any code, artwork, or other content that Epic makes available to you for use with the Engine Code, other than any Unreal Tournament Content and any Robo Recall Content. For clarity, **Content includes but is not limited to Paid Content and UE-Only Content.**"*

Does this mean that using, for example a marketplace-bought animation asset, in another engine may then make you liable for paying royalties to Epic as your 'product' is then encompassed by the EULA? . . . if that is so, the Marketplace FAQ doesn't make that in any way clear and should be immediately amended to reflect that.

IF that is the case (and it disappoints me to say), i think it is incredibly disingenuous of Epic to not make that clear to potential customers in the Marketplace FAQ regarding the external use of marketplace content.

Can someone from Epic (preferably legal!) confirm whether it is so that you may owe a royalty on Marketplace-bought (Non-Epic produced assets)? And if so is this a blanket application, or is it on a case-by-case basis (and then what defines the application of this?)

Thank you for your time.

Product Version: UE 4.21
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asked Jan 21 '19 at 01:45 PM in Legal & Licensing

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