Royalty on 3D model exported from game

Hi,
Would royalties be due in the following situation?

I distribute an app made in UE4 for free.
The app allows users to import and export 3D models.
The app also allows users to upload 3D models to my web platform which has a 3D model viewer.
The 3D model viewer on my web platform does not use Unreal Engine in any way.
I monetize the web platform which allows users to view their 3D models by charging users a subscription fee.

Well, not exactly Sketchfab. But yes, you get the general idea (Web based model viewer). We will surely have a free tier as well.

If I’m using the engine as part of which process exactly? The web platform can have models coming in from other external sources as well as through a REST API.

So you want to make Sketchfab but charge people money to use it? Good luck. Also, considering you don’t pay royalties on UE4 projects until you make more than a million bucks, I don’t think you need to worry about it. But short answer, if you’re using the engine as part of the process, then yes.

“I distribute an app made in UE4 for free. The app allows users to import and export 3D models.”
That process. Doesn’t matter if you’re releasing the app for free, if you’re utilizing the engine in any step of your monetization, then you’ll probably have to pay royalties. But I think this is the wrong place to ask this sort of question. Answer hub is mostly community-driven. If you want the correct info in regards to something like this, you should contact Epic directly. But I’d build it with the assumption that you’ll need to pay a royalty.

Thank you. I eventually contacted an Epic games evangelist and am awaiting a definitive answer.
We’ll probably build it out in a different engine if we have to pay royalties on this.

Thank you. From your answer, it is clear that the 3D model itself is a Non-Engine product. Just to be sure about the other part, when an application built using UE4 uses a REST API to interact with a Non-UE4 web platform, the revenue from the web platform does not become liable to royalties. Is my understanding correct?

The model itself, provided it’s not relying on any Engine Code and doesn’t include otherwise restricted content (e.g., Megascans), is considered a Non-Engine Product under the EULA. You do not owe royalties for Non-Engine Products.

a. Non-Engine Products - You may Distribute Non-Engine Products to any third party. “Non-Engine Product” means a Product made using the Licensed Technology that does not include any Engine Code or any Paid Content Distributed in uncooked source format (in each case, including as modified by you under the License) and does not require any Engine Code (including as modified by you under the License) to run. For example, and subject to the foregoing, you may freely Distribute non-interactive linear media products (e.g., broadcast or streamed video files, cartoons, movies, or images) rendered using the Engine Code, and asset files (other than UE-Only Content) developed or used with the Engine Code, including in products that use or rely on other video game engines. For clarity, this section does not constitute a license under any patents, copyrights, trademarks, trade secrets or other intellectual property rights, whether by implication, estoppel or otherwise.

That depends on the nature of the interaction. If that interaction is import/export of assets that constitute Non-Engine Products, then you won’t owe royalties. If the revenue otherwise falls into one of the exceptions in Section 5(1)-5(11) of the EULA, you will note owe royalties.