Fees for an add-on developer? Or only the game publisher?

Having read the EULA and FAQ it’s unclear to me what the answer to the following question is:

If I’m building add-on content to a commercial game that uses UE4 as it’s engine, do I have to pay fees to Epic or only the publisher of the game?
ie. I’m not the one building the game, I’m adding content to it. In this case the upcoming Train Simulator World from Dovetail Games is using UE4 as it’s base. I develop add-ons - trains and wagons that others can download and use in the game. Do I need to pay the 5% fee and royalty to EPIC for the products I sell?

The EULA section 5 has this in it, which I would think applies to me as the add-on developer (ie. I don’t have to pay fees as I’m not the licensee) but absolute clarification would be nice:

*However, no royalty is owed on the following forms of revenue: <snip>

5. Revenue from a Product which is only Distributed to Engine Licensees (such as through the Marketplace);

If you are selling an add-on to a game then you would have to pay royalty on it. That section in the EULA would be for content that is used to create games, not finished products.

Ouch. That’s a dealbreaker. So are people who are building mods and add-ons for all UE4-based games paying fees? On top of the fees EPIC make from the game licensee?

That’s actually a very good question and would also like an answer to it.

If you are selling the mod, then yes you have to pay royalty. Many mods are free and that obviously doesn’t require royalty.

Also note–you don’t have to pay royalty if you make less than $3,000 that quarter, so you could conceivably make $12,000 a year without paying royalties.

I’m not sure he does necessarily need to pay the royalty. In this particular instance, he needs to contact Dovetail to see what their particular arrangements are with regard to third party content.

I’m in contact with Dovetail too for clarification as technically any add-on falls under their EULA, not Epic’s. This is an interesting topic for sure.

Typically paid mods give a fraction of the earnings to the game developer, and I would think it would be the developer paying those royalties. Otherwise, Epic is double-dipping on the royalty by collecting the same fee from multiple parties.