UDK Commercial Terms
If you use UDK in your business, sell a game or application created using UDK, sell services or training and in connection with that business, distribute an application you've created using UDK, or use UDK in any way to generate revenue, directly or indirectly, in addition to your agreeing to the UDK EULA, you are required to sign a UDK Commercial Use License Agreement. A summary of the current terms of this license are as follows (note that the below terms are only a summary – the actual terms appear in the UDK Amendment):
If you are using UDK internally within your business and the application created using UDK is not distributed to a third party (i.e., someone who is not your employee or subcontractor), you are required to pay Epic an annual license fee of $2,500 (US) per installed UDK developer seat per year. This license fee only applies to UDK seats used for development; no license fee is required for hardware where only the resulting applications are installed.
If you are creating a game or commercial application using UDK for sale or distribution to an end-user or client, or if you are providing services in connection with a game or application, the per-seat option does not apply. Instead the license terms for this arrangement are US $99 (Ninety Nine US Dollars) up-front, and a 0% royalty on you or your company's first $5,000 (US) in UDK related revenue, and a 25% royalty on UDK related revenue above $5,000 (US). UDK related revenue includes, but is not limited to, monies earned from: sales, services, training, advertisements, sponsorships, endorsements, memberships, subscription fees, rentals and pay-to-play.
Here are some examples:
· A warehouse company uses UDK to create an application for employee safety training. They develop it on one computer and then install the resulting application on two computers for their internal employees to use. They require a single UDK development seat license for a total cost of $2,500 per year, for as long as they use UDK to develop and/or maintain the application.
· That same warehouse company decides to use the safety training application to sell safety training services to third parties. They earn $15,000 in the first calendar quarter for safety training services. They would pay a seat license for the internal use, US $99.00 for the royalty license and the 25% royalty on the training services revenue over $5,000. They would be required to pay $2,599 to Epic and the 25% royalty on subsequent revenue.
· A team creates a game with UDK that they intend to sell. After six months of development, they release the game through digital distribution and they earn €15,000 in the first calendar quarter after release. Their use of UDK during development requires no fee. Upon release they would pay US $99.99 for a Royalty Bearing license. After earning €15,000, they would be required to pay Epic €2,500 (€0 on the first €5,000 in revenue, and €2,500 on the next €10,000 in revenue). On subsequent revenue, they are required to pay the 25% royalty.
· An architecture firm uses UDK to create a live walk-through presentation for their customers. They charge their customers a fee of $500 for each walk-through. Before they begin to charge customers for the walk through, they would pay Epic US $99.99 for a Royalty Bearing license. they sell walk throughs to 10 customers in the first quarter, bringing in $5,000 in revenue to charge customers No payment would be required to Epic for that first $5,000. In the second quarter, they sell another 10 walk-though presentations, bringing in another $5,000 in revenue. They are required to pay $1,250 to Epic. On subsequent revenue, they are required to pay the 25% royalty.
The UDK Commercial Use License may be executed by an individual or a corporate entity. If an unincorporated team wishes to license UDK, we recommend setting up a simple corporation or partnership for the team before contacting us for a license. If that is not feasible, please designate a single individual to contact us who will be responsible for executing the license and fulfilling the terms.
A note to developers under the age of consent (minors): Please have your parents contact us for a UDK Commercial Use License, as we cannot enter into a license agreement with a minor.