License fee on a marketing freebie game

Assuming that access to the games is gated behind payment of the subscription fee, under the EULA, the subscription fee would count as royalty attributable to the games, and you would owe a 5% royalty.

Hello,

I work in a company where we have a subscription model service where users pays X$ every month.

If we were to release free games on our platform would we have to pay a license fee to Epic?

If my question was not clear enough don’t hesitate to ask for more information.

Thank you a lot !

Even if the main product is not a game distribution service ?

That seems odd for a small byproduct, so If I’m realeasing it for free elsewhere on the epic game store let’s say it would be then free of charge?

Correct, if you released the game for free, including by not restricting access to the game behind the subscription fee, you would not owe any royalties.