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    Kickstarter?

    Do I need a commercial license to start a campaign to raise money with the
    site like Kickstarter ?

    #2
    I would imagine so, yes - since you're earning money directly off the back of a UDK project.

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      #3
      it's better if you write the UDK support directly, because they can tell you it for sure

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        #4
        it's better if you write the UDK support directly, because they can tell you it for sure
        Yes I did it.
        Now waiting for a response.

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          #5
          Yes, the commercial license is needed.

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            #6
            Yes, and the royalties apply as well, if you get more than $50,000 you have to start paying 25% to Epic

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              #7
              Darthviper107: Are you saying that if you raise $500,000 to make the game with Kickstarter you have to give Epic 25%? This doesn't seem to make any sense. If I go and successfully raise $500,000 in funding from friends and family to make my game I wouldn't expect to have to pay any to Epic until the game started to sell and general profits. Maybe I'm out to lunch but paying epic money from investment raised doesn't sound right.

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                #8
                Originally posted by ambershee View Post
                I would imagine so, yes - since you're earning money directly off the back of a UDK project.
                But he's technically not 'earning' money, he's raising investment to produce the game. All of which would go into the production of the game. After which if the game cost say $100,000 to make and he raises $200,000 and just keeps the extra than I can see paying Epic the their due on that extra amount. But if I go to my friends and family and say I want to make a game using UDK and I get $200,000 I wouldn't expect that I'd immediately send UDK a cheque for $50,000 the next day. I'd spend the $200,000 to create teh game and then pay epic a royalty on the sales.

                To put this in a different light if I incorporated a company tomorrow to make a UDK based game and I myself wanted to fund it entirely with the $200,000 I have lying around. If i were to take that $200,000 from my personal account and move it into my new corporation's account(which the UDK commercial license I own is registered under) would I be expected to take $50,000 out of that $200,000 and send it to Epic?

                Maybe I don't understand the UDK license as I thought but I assumed that royalties were paid on gross profits(less applicable fee's) resulting from the sale of the game. Not total money raised to produce the game

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                  #9
                  I think they might have already said things like that counts as income. I might be wrong, best to check with them to make sure. But to me I'd imagine it would be because usually those that are putting in money are getting the game back in return, so rather than just being an investment it's like they're paying for the game early.

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                    #10
                    Hmm, but they aren't necessarily getting the game back in return.. There is no stipulation with kickstarter that any of these people would get the game in return nor that they would even want it in return for the investment.. I mean sure it's kind of assumed but a simple clause in the investment contract to stipulate that this investment does not grant the investor any copies of the game could remedy that in a heart beat.

                    You do this with kickstarter and you are opening a can of worms with all investments down the road. If my brother gives me $500,000 and says he wants a copy of the game as soon as it's released and the game costs me $600,000 to make, $100,000 of which I pay for myself does that mean I'm giving Epic $100,000, furthering my losses even more? I suppose by what you're saying it would, in which case(assuming this is how the license actually works) then a contractual clause stating that the persons investment does not represent, nor guarantee a copy of the product would definitely be advisable.

                    From the Licensing FAQ
                    "includes, but is not limited to, revenue earned from: sales, advertisements, sponsorships, endorsements, subscription fees, microtransactions, in-game item or service sales, rentals, pay-to-play, services you sell or are remunerated for in connection with the use of your application and amounts a third party pays You to develop or use the application."

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                      #11
                      I just wanted to point out that in all these examples, such as

                      But if I go to my friends and family and say I want to make a game using UDK and I get $200,000 I wouldn't expect that I'd immediately send UDK a cheque for $50,000 the next day...
                      The royalty, if and when applicable, only affects income (from all UDK games) after the first $50,000. i.e. if you received $200,000 in profits, the amount due Epic would be ($200,000 - $50,000) X 25%, or 25% of $150,000, not 25% of the full $200,000.

                      Of course, if you've already made > $50,000 in profits from a UDK creation, then the examples are perfectly valid.

                      Anyway, please continue with this interesting discussion.

                      In fact, let's throw a monkey wrench into things. What if, a few months after receiving $200,000 from Kickstarter, you ultimately decide to build your game with another engine? Should the royalty for Epic be held until the game is actually released, or should you pay it right away, and then ask for a refund if this happens?

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                        #12
                        Suppose you raise $500,000 through kickstarter, and then give the finished game away for free.

                        You can argue the difference between investment vs profit, but the above scenario demonstrates that someone is making money out of the engine. Technically this may not be valid until delivery - the moment the game becomes public. But that's another grey area - what constitutes delivery of the product. Release candidate? Beta? Alpha?

                        A can of worms indeed. One that I wouldn't dare open without a flock of vultures - sorry, lawyers - to back it up.

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                          #13
                          It's best to contact Epic about it rather than speculating

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                            #14
                            Originally posted by darthviper107 View Post
                            It's best to contact Epic about it rather than speculating
                            but this is so much more fun and the animal metaphors from spoof just made my night

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