Paying fee for animation project


I know that movies are free of charge in terms of paying the fee. Is this also true if we make a project (EXE) that has only animation in it? It is for a device simillar like oculus where the only interaction is looking through a binocular-like device. My client wants to buy such animation but as an EXE project. This is the same as animation but we will not render it to JPG or other movie format. They do will earn money on this (selling tickets to a museum or something like that).


There are a few things to unpack here.

  • If you’re using the engine at runtime in a VR project, that doesn’t fall within the EULA Section 5(4) exemption for linear non-interactive media, especially if it has a binocular interaction.
  • If you’re selling a unique, custom work-for-hire project to a single client, there’s no royalty on those work-for hire fees.
  • If your client then monetizes it, that is subject to a royalty. That means you’ll want your client to become a EULA licensee so that they can be responsible for royalties, if there are any, rather than you.
  • Typically, museum usage falls within royalty exemptions.

Just to be clear (Im not native american) so I dont sign a bad agreement - if I will make an animation for VR or other device which has no interactive - do my client need to pay for this? I don`t know if they will earn money in museum or other place.

In addition - I had clients with small cinemas (3D) and they asked us to render a movie and we were thinking about rendering it in UE. Do they need also pay fees for this kind of thing?

Regardless of interactivity, if the Product is a runtime executable, rather than say a still image or a movie file, the royalty will apply. You or your client will need to pay a royalty unless a royalty exemption applies. I would recommend requiring that your client becomes a EULA licensee so that it’s their responsibility.

If it’s just a movie file, there is the linear non-interactive exemption, so no royalties.

I see, so what should my client do, to become a EULA licensee? Does he need to sign on epic page? Install launcher? Or should I have an agreement saying that commits that he is a EULA licensee?

Yes, sign up for the engine like you did. But you could also put the requirement in your contract with the client.