Question about the 5% royalty

So my question about the 5% is does it mean i have to keep paying after the 3,000$ till the end of the first calendar quarterly and then pay again if i go over 3,000 in the next calendar quarterly or how does it all work?

I believe its once you exceed the $3,000, you have to keep paying the 5%. It doesn’t reset as far as I’m aware.

alright but what about the part where it says ( you’ll need to track gross revenue and pay a 5% royalty on that amount after the first $3000 per game per calendar quarter.)
the end it says per calendar quarter can anyone explain that because im a bit lost on it o.o;

It means that Epic expects quarterly payments, if applicable. So you cant pay the royalties just anually. What you earned from January to March, you cant keep until christmas :slight_smile:
Otherwise I would say to Epic “Sure I pay the 5%. But according to my 5-year plan” :smiley:

so does it work where after the first 3,000$ of quarter one i pay the 5% then on the second quarter after 3,000$ i pay 5% again?

I found this on the “UE4 now free” thread

when this was asked (witch is basically the same as your question)

this was the response

hope that helps:)

What I wonder about the royalty scheme in general:

How does Epic know Im making money with an UE4 game?
The scenario: I use UE4 and develop a game. Then another person publishes and sells it. We share the revenues.
How would Epic get to know about that? I mean, they cant possibly know of all games that are released everyday worldwide…
And is it possible to verify from the packaged game that it was developed with UE4 and which subscriber?

That’s interesting, I didn’t know that. Thanks for the information Smokey13. =)

I don’t know if/how they would know but if they found out you would be in a lot of trouble, I know they watch out for that type of thing too.

it would be easy for them to determine if a packaged game was developed in UE4, they could also find out who created the game fairly easily and then check if that person had a valid sub/license, so yes to both.

oh and I just realized that your post is kind of talking about illegal activity’s witch is a against forum rules so its probably best not to speak of such things on the forum, I also wouldn’t be surprised if it gets deleted.

No problem:), although that quote doesn’t mention that its per title as well, also it might have changed by now for all I know but I am sure if it has then one of the epic devs will probably pop in to confirm or correct it.

Why would you ever try to cheat the system? It’s illegal in almost every country in the world.

Plus, if you’re only making a little money, you’d only owe a tiny bit. It couldn’t possibly be worth breaking the law for this tiny bit of money. If you’re making a lot, they’d know and you’d never get away with it. At what point does it make sense to try to cheat them?

If you want it to be absolutely free, feel free to just write your own engine and not have any legal headaches at all.

The talk is about how such things might be prevented. I neither asked if this was ok to do, nor did I express anz ambitions toward such activities.
It is purely out of interest as I already thought of a similar licensing scheme for my own software project when its finished (totally unrelated to game develkopment).
And that cheating scenario is what Im still scratching my head about.

Which witch? Hope not the switch witch which is a ***** :stuck_out_tongue:
… Is is not ok to instigate or endorse illegal activities; which I didnt.
Wanting to know how an atomic bomb works doesnt make you a terrorist either… :slight_smile:

It’s not very hard to track down illegal use of engine and if legal team will find out about such project - this will happen

Lol, someone got smacked… And that is why you don’t cheat the system, it will just come back to bite you in the butt.

if another person sell a game made with the engine, he must paid the license in the same way.
And that person not have right for sell (he must subscribe and do the license agreement), easy get it a legal trouble (that person), inclusive if he not make money, they can sue you. You must register and download the engine legally.

if they detect a game sale without knownledge, they can ask you for ledgers and you must show, (its on license agreement).

Its easy, anyway i suppose you must make a good relevant game, they not going to sue for sell 30 copies (that perhaps its the 3000$ per quarter exception)

Just to clarify my line of thoughts here:
Epics licensing scheme > I like it a lot > Want to use it for my own products as well > Im aware of the described cheating scenario > I assume that Epic is aware of that too > Yet still, thats the licensing they are going with > I assume they are not stupid > Must mean they have a “solution” > So Im asking myself “How can one not get away with that”.

…And thats how one can come about wondering how things are… :rolleyes:

PS. In the SiliconKnights case, they sued first and drew attention…
Im just worried my customer will use my software for years “under the radar”

What I would say if you’re a one man band, or small team, is that this kind of thing can be difficult to enforce. Epic have people (or have the funds to hire them) who can handle the legal side of things and also track down and investigate misuse of their licenses, but you most likely wouldn’t find it so easy.

This is a fantastic and generous way to distribute your software, but you have to make sure you have a capability to find and take down people who try to exploit it otherwise you’ll suffer for it.