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How to calculate Royalty with different Platforms?

We have released our first game and it is now time to fill out the royalty form for the quarter, but I have stumbled upon a few problems.

The game has been released on both the Oculus store and Steam store. The Oculus Start program pays the license fee for Unreal titles if applicable, but the 3k threshold has not been met on their platform, where as it has been for total revenue with Steam included.

Can we actually use the revenue share option for Oculus? It seems like with the royalty terms this is only possible for Oculus-only titles or is it possible to submit the form once per platform? Is there a special agreement between Epic and Oculus?

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asked May 16 '19 at 04:19 PM in Legal & Licensing

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FTC
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Can you please clarify what you mean by "revenue share option for Oculus"? Please note that you do not owe any royalty for the first $5,000,000.00 in gross revenue for each Product from the Oculus Store.

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answered May 16 '19 at 07:16 PM

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SonsOfKorhal STAFF
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avatar image FTC May 20 '19 at 01:45 PM

I mean the royalty agreement between Oculus and Unreal, enabling it is called "Revshare OptIn" on the oculus site https://developer.oculus.com/documentation/unreal/latest/concepts/unreal-oculus-license/

The question is, if this is enabled and say the game makes 2.5k on Oculus and 2.5k on Steam what has to be put into the royalty form?

As I understand it Oculus covers the fee for sales on THEIR platform only, but combined the game would would have made more than the 3k royalty threshold.Yet on Oculus side they would not consider it for royalty and if you say no royalty needs to be paid for gross below 5m, then would the only thing being factored in be the 2.5k from Steam? Which in turn would mean no royalty payments are due?

avatar image SonsOfKorhal STAFF May 20 '19 at 07:24 PM

Correct. In the case you describe, you would use the 2.5k figure as your quarterly revenue, and you would not owe any royalty.

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