Hey there @Horserous! Welcome to the community! To preface everything I’m about to say, this is not legal advice and I’m not a lawyer affiliated with Epic Games, just someone who’s released games under both the Fab and Marketplace EULAs. With that out of the way.
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As I understand it, you can modify any of the assets that you purchase under any of the licenses that are allowed and even encouraged. This was always the case with marketplace assets as well for the old license.
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Most licenses on Fab allow for use outside of Unreal. This however excludes anything with (including but not limited to) a legacy marketplace license or the Reference Only license (you will see this on the right side when selecting a license or under licensing info). For standard and professional Fab licenses, the assets are able to be used across any engine.
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As long as the animation ends up in a game as a final product, your final product will be under the games licensing umbrella when it comes to revenue reporting and royalties.
It’s still recommended however to go over your business plan and the EULA with your lawyer to verify your use case falls within the terms of service.
Since you already read the EULAs, some more documentation outside of them can be found here:
If you have any direct inquiries, you may be able to ask support here: