Royalty fee for unreleased, state funded prototype?

I want to develop a game prototype which is partly state funded. It’s main purpose is to serve as a showcase for publishers and investors and therefore not released to public. Do I have to pay royalty fees?

What happens if I later release an improved version in a crowdfunding campaign. I know I have to pay fees for the crowd funded amount, but do I owe fees retroactively?

additional info: the state funding is a non-repayable grant; they don’t buy anything and I don’t sell anything

You don’t pay any royalties on the first $3,000 per quarter anyway, if that helps.

Otherwise, it’s a tough one. You can be liable to pay on money received in advance, but it is not clear from what you say that they are specifically paying for ownership of, or access to, the product (liable) or just paying for your company to build a prototype (not liable).

It is probably best to ask Epic, if you are unsure, rather than have an internet rando advise you. :slight_smile: