Epic disclaims warranties and limits the types of damages you can recover from Epic if something goes wrong with the engine or your use of it. This means you may have limited legal recourse for losses caused by engine defects or failures.
This analysis describes what Unreal Engine's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Warranty disclaimers and liability limitations are standard in software licenses, but for studios building large commercial products on Unreal Engine, these limitations mean that engine failures or defects may not give rise to recoverable damages from Epic.
Interpretive note: The specific scope of excluded damages is referenced but not reproduced in the truncated document text; enforceability also varies by jurisdiction, particularly for EU consumers with mandatory statutory warranty rights.
If Unreal Engine causes losses or damages to your business, the agreement limits Epic's financial liability and disclaims warranties, which may leave you with little recourse even for significant harm caused by engine defects.
How other platforms handle this
TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
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"BY AGREEING TO THE TERMS OF THIS AGREEMENT, YOU ARE ALSO AGREEING TO CONTRACTUAL TERMS THAT WILL LIMIT SOME OF YOUR LEGAL RIGHTS, INCLUDING A DISCLAIMER OF WARRANTY, AN EXCLUSION OF CERTAIN KINDS OF DAMAGES, AND A LIMITATION OF LIABILITY.— Excerpt from Unreal Engine's Unreal Engine EULA
REGULATORY LANDSCAPE: Disclaimers of warranty and limitations of liability in software licenses are governed by Article 2 of the UCC (for goods) and common law in the US, and by consumer protection directives in the EU that may restrict the enforceability of such disclaimers against consumers. The EU Consumer Rights Directive and national implementations may render warranty disclaimers unenforceable for EU consumers, regardless of the Irish governing law clause. GOVERNANCE EXPOSURE: Medium. Warranty disclaimers and liability limitations are standard industry practice for software licenses and are generally enforceable in US commercial contexts. However, for EU consumers, mandatory statutory warranties may apply despite the contractual disclaimer. The practical impact for large commercial studios is that engine defects are operationally their problem to manage, with limited contractual recourse against Epic. JURISDICTION FLAGS: EU consumer protection law provides mandatory warranty rights that cannot be waived by contract. UK consumers have similar statutory protections under the Consumer Rights Act 2015. California consumers may have additional warranty rights under the Song-Beverly Consumer Warranty Act, though the applicability to software licenses is subject to ongoing legal development. CONTRACT AND VENDOR IMPLICATIONS: Studios should assess whether their own client agreements appropriately flow down the limitation of liability from their Unreal Engine license, so that clients are not promised warranties that Epic has not provided to the studio. Insurance coverage for technology errors and omissions should be evaluated in light of Epic's liability limitations. COMPLIANCE CONSIDERATIONS: Legal teams should review the specific damages excluded (typically consequential, indirect, and punitive damages) to understand the full scope of the limitation. Studios relying on Unreal Engine for mission-critical commercial deployments should assess operational risk mitigation strategies in the absence of meaningful contractual recourse against Epic for engine failures.
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Warranty disclaimers and liability limitations are standard in software licenses, but for studios building large commercial products on Unreal Engine, these limitations mean that engine failures or defects may not give rise to recoverable damages from Epic.
If Unreal Engine causes losses or damages to your business, the agreement limits Epic's financial liability and disclaims warranties, which may leave you with little recourse even for significant harm caused by engine defects.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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