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Crowdfunding royalties for designing an in game element

Greetings!

I have a couple of questions about the royalties applicated to some reward tiers of a Kickstarter campaign.

The first one... If I do offer to help the team in the design process, do I have to apply the royalties to that tier? The game rewards are the same as every other backer (as its work will be in every game, and it's not necessarily related to the engine itself).

The second one... This will be easier to understand with an example. Let's say I have three reward tiers

1- A poster (20$)

2- A poster + Digital copy of the Game (30$)

3 - A poster + Digital copy of the Game + A plushie + The Physical edition of the game (100$)

I know that I don't have to pay royalties for the first reward, and that the 5% of the royalties is only applied to the 10$ value of the game in the second reward. But I don't know what should I exactly pay for the third one.

Any help is more than welcome! :D

Product Version: UE 4.21
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asked May 10 '19 at 10:43 AM in Legal & Licensing

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Mighty Marcos
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Hello. In advance, this answer is not legal advice. I am not a lawyer.

  1. You pay no royalty since it does not give game access nor any benefit in game (see EULA section 5, exception 3).

  2. You would pay royalties for the 10 U$D digital copy of the game and the X U$D for the physical copy of the game, of which you will must clarify its value (or the one of the plushie), so the royalty can be computed correctly. If there is no price clarification you will most probably have to pay for the rest 70U$D (plushie + physical copy) as it will be asumed to be a single product that provides access to the game.

Hope it helps. Make it a great day!

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answered May 10 '19 at 11:03 AM

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Bariudol
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