Licensing of marketing Software


a company contacted us to develop a marketing strategy.

We offered to make a software, which will be used in official showrooms via the HTC Vive to display and market the product in the HMD.

Do we have to pay the 5% royalty for products sold or for the cost of development?

Thank you very much!

It sounds like you are talking about custom work-for-hire for a single client, where that work is directed by the client - is that correct? And the result of the work would not be sold, but it would be used to market another product?

We are an agency so the work is directed by us but discussed with the client. The work (The VR-Product) would be used to market another product

Custom work-for-hire fees are royalty free under the EULA. And since the product itself would not be sold, there is no other product revenue to be subject to a royalty.