If you publicly distribute a product made with Unreal Engine that earns more than $1,000,000 in gross revenue, you owe Epic a 5% royalty on the revenue above that threshold. Advances from publishers also count toward this calculation.
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
This is the primary financial obligation in the agreement and can represent a significant cost for successful commercial game studios or product developers.
Developers whose products earn more than $1,000,000 in gross revenue will owe Epic 5% of that revenue as a royalty, which can materially affect the financial returns of a successful product.
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"Distributions of any Product that is not a Royalty-Free Product (such Products, 'Royalty Products') will be subject to the terms of the attached Royalty Addendum. Additionally, any advance on Royalty Product revenue you receive to develop a Royalty Product will be subject to the Royalty Addendum. However, as described more fully in the Royalty Addendum, you will not be obligated to pay us royalty payments under this Agreement unless a Product directly generates more than $1,000,000 USD in gross revenue.Excerpt from Unreal Engine's EULA
REGULATORY LANDSCAPE: Royalty payment obligations and the calculation of gross revenue may engage standard commercial contract law in North Carolina (for US entities) and Ireland (for non-US entities).
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This is the primary financial obligation in the agreement and can represent a significant cost for successful commercial game studios or product developers.
Developers whose products earn more than $1,000,000 in gross revenue will owe Epic 5% of that revenue as a royalty, which can materially affect the financial returns of a successful product.
ConductAtlas has identified this type of provision across 230 platforms. See the full comparison.
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