Hi,
We are considering licensing Unreal Engine but I can’t find any information on how you define each version of the game in the EULA, if you are working on a game brand where each SKU/version could be a potential product.
In the EULA you can read this.
(5.) Royalty
You agree to pay Epic a royalty equal to 5% of all worldwide gross revenue actually attributable to each Product, regardless of whether that revenue is received by you or any other person or legal entity, as follows:
a. Gross revenue resulting from any and all sales of a Product to end users through any and all media, including but not limited to digital and retail; . . . .
However, no royalty is owed on the following forms of revenue:
(1.) The first $1,000,000 in lifetime gross revenue for each Product
(2.) Gross revenue attributable to a Product from a calendar quarter during which the gross revenue for such Product is less than $10,000;
Let’s say we have a game that is cross platform. iOS/Android and Switch.
When calculating the revenue, do each SKU of the game counts as a separate product, meaning that iOS version must bring in $1m in revenue before royalties is payed or is both iOS and Android (mobile) calculated as one product?
If mobile counts a one product how about the Switch version that might have some game variation to the game.
Also, lets expand and let’s say mobile has one set of levels and gameplay and the console version has its own set of levels, story etc.
How do we determine what the product/game definition is and what’s separating the games as a product?
Also, sequels, game of the year editions etc. could be a potential separate product?
Thanks in advance