iOS Licensing Fees - How does it work?

[wesleyrm]

Hi,

I was curious as to the licensing fees and how it works. From my understanding, UDK iOS uses the $99 fee and 25% royalties on over $5000. Is this correct? If so, is the $99 fee annual on top of the Annual Apple Dev license? Also, how are the 25% royalty fees collected. Is this an auto process as with Apple's 30% royalty fee?

Thanks,

Wes

[agentfx]

I was wondering some of that. How I thought it works is

$99 apple yearly dev fee
$99.99 epic license fee ("Royalty Bearing license")

30% apple fee
of the remaining money
25% royalties on over $5000 to Epic
or of the original pre apple 30%

But it says 25% of "revenue" so are the royalties 25c on the dollar or 17.5c on the dollar?

$1.00 game
$0.30 = apple
$0.25 = epic
$0.35 = developer

or

$1.00 game
$0.30 = apple
$0.70 = developer
-------> 25% of $0.70 = $0.175 = epic

[joat]

From the development kit FAQ:

Q: How is revenue calculated for the purpose of calculating the UDK royalty?

A:Your UDK royalty is only calculated on revenue you receive. If your UDK app generated $100.00 of retail or online sales but you are paid only 70% due to a 30% distribution fee your UDK royalty is calculated on the $70.00 you actually received.

Cheers,
Michael Noland

[agentfx]

Thanks Michael. I know royalty questions are kinda annoying.

[Sir. Polaris]

$0.525 cents on the dollar is all thats left from a $1.00 game

I have broken it all down and pasted it here: http://udkc.info/index.php?title=IOS#Legal_and_Sales where it can be edited by other people. As well the site provides tables which are useful

[Blade[UG]]

7143 units at $1 to break the 5k revenue line, if you're getting 70% of the top line sales.

If you double those sales, you're looking at roughly $8750 for you, $730 for epic, and $2503 for Apple.

[Gamepatriot]

From my understanding of apple and UDK licenses:

Upfront fees:
Apple Developer License - $99/year
Allows access to iOS development tools (Mac + snow leopard required), provisioning tools, and appstore submissions.

UDK Commercial License - $99/game
Commercial game license.

---
Profits based on a tier one app ($.99):

First 7,142 purchases-
Apple's share: $2,071 ($.29/purchase)
Epic's share: $0 ($.00/purchase)
Your share: $4,999.40 ($.70/purchase)

All remaining purchases-
Apple's share: $.29/purchase
Epic's share: $.16/purchase
Your share: $.52/purchase

[Vmlweb]

Do we have to contact epic when our games reach the $5,000 sales mark?

[jasonmei]

A:Your UDK royalty is only calculated on revenue you receive. If your UDK app generated $100.00 of retail or online sales but you are paid only 70% due to a 30% distribution fee your UDK royalty is calculated on the $70.00 you actually received.

Is the revenue means revenue before tax or after tax?

[Sir. Polaris]

Depends if we can claim taxes as a "distribution fee"

Do we have to contact epic when our games reach the $5,000 sales mark?

I would believe so, unless you want to be sued for monies not rendered.

[Vmlweb]

I would believe so, unless you want to be sued for monies not rendered.

Yeh I was just thinking Epic might have integrated a little counting system to see how many new device IDs have been registered.

[Sinan]

--- edit ---

[Sir. Polaris]

I saw, I came, I Hahaha'ed

[aZzy]

I HUH-ed??

Lol math is not a great friend of mine, nor is introducing the alphabet to the number line...

But i do understand how it works lol... i think plain english would be easier to understand. =P

At the end of the day guys, if your not making the most profit vs apple + epic, there is something wrong.

[Sir. Polaris]

it was a joke aZzy

I broke it all down here for you: http://udkc.info/index.php?title=IOS#Legal_and_Sales