Seling simulation to cinema 4D - who needs to pay 5%?

Hi

My company is starting to make a VR project, this will be a rollercoaster-like ride (You can only look around with Your head). We have signed a Work-For-Hire agreement. This project will be displayed in a 4D cinema. My clients will sell only the tickets to show the virtual ride. So my question is: do they need to pay 5% from the tickets they sell or only my company needs to pay it? Maybe we both need? I am a little bit confused.

Cheers,
Lucas

If this isn’t a product being sold to consumers directly, it looks like tickets for the ride would fall under the royalty exception for “interactive amusement park rides”. Also, there is a royalty exception for “work-for-hire fees”. So, no royalties would be owed.

That was really fast reply, thank You! I don’ t mean to be impertinent but, are You 100% sure about the ride? :slight_smile: I was afraid that my client would need to pay the fees but if no that will be a great news for me (and them)! :slight_smile:

Cheers,
Lucas

Yep - I wrote the EULA. If you start selling a commercial product (like off the shelves), royalties are owed.

I see :slight_smile: Ok, thank You very much for You help. Have a nice day :slight_smile: