# How does licensing work for a product created for another company that will not be taking revenue, but paying for the application?

**URL:** <https://forums.unrealengine.com/t/how-does-licensing-work-for-a-product-created-for-another-company-that-will-not-be-taking-revenue-but-paying-for-the-application/453842>\
**Category:** Asset Creation\
**Tags:** licensing, commercial-use, unreal-engine, question\
**Created:** [August 14, 2019, 12:46pm UTC](https://forums.unrealengine.com/t/how-does-licensing-work-for-a-product-created-for-another-company-that-will-not-be-taking-revenue-but-paying-for-the-application/453842 "2019-08-14T12:46:54Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Dan\_Stringer](https://d3kjluh73b9h9o.cloudfront.net/original/4X/2/8/5/28502927f1d97ba1051b3b47ccfe17233bf41ef0.png) [@Dan\_Stringer](https://forums.unrealengine.com/u/Dan_Stringer)\
**Post date:** [August 14, 2019, 12:46pm UTC](https://forums.unrealengine.com/t/how-does-licensing-work-for-a-product-created-for-another-company-that-will-not-be-taking-revenue-but-paying-for-the-application/453842/1 "2019-08-14T12:46:54Z")

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I currently use unity, and am interested in using unreal.

We create applications for training and simulations for company’s., this can be 3D walkthroughs or VR/AR

They are not collecting revenue but are paying us to make the application. So effectively a lump sum at the end of the project.

I was unsure of licensing and wondered if anyone could assist

Thanks

Dan

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**Author:** ![SonsOfKorhal](https://d3kjluh73b9h9o.cloudfront.net/original/4X/2/8/5/28502927f1d97ba1051b3b47ccfe17233bf41ef0.png) [@SonsOfKorhal](https://forums.unrealengine.com/u/SonsOfKorhal)\
**Post date:** [August 14, 2019, 3:55pm UTC](https://forums.unrealengine.com/t/how-does-licensing-work-for-a-product-created-for-another-company-that-will-not-be-taking-revenue-but-paying-for-the-application/453842/2 "2019-08-14T15:55:02Z")

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Typically, when you "sell’ a software product, you are not actually transferring ownership interest in the software, but selling a license to use the product. Provided you are using this model, you will not owe any royalties for custom work-for-hire products that you develop for and distribute to a company. Please also note that these distributions are limited to object code (executables) only. Section 1(A)(b) of the Unreal Studio EULA provides some pretty clear language on this.