Source: https://thomasalspaugh.org/pub/osl-sps/udk-licensing.2011-02-20.html
Timestamp: 2019-04-25 22:34:38
Document Index: 47503781

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UDK Licensing numbered
Licensing — Epic UDK
(as of 2011-02-20)
Source: UDK web site (2011Feb20)
§1Licensing
§1¶1§1¶1ṣ1Use of the UDK for noncommercial purposes is free of charge. §1¶1ṣ2If you are going to use the UDK for any commercial purpose or in any way that is not specifically authorized in the end-user license agreement (EULA), you must agree to appropriate commercial terms. §1¶1ṣ3You can read more about these options below.
§2UDK Commercial Terms
§2¶1§2¶1ṣ1The UDK is FREE for educational use. §2¶1ṣ2Feel free to use it in your school's curriculum. §2¶1ṣ3Educational institutions can use the UDK for free even though they're charging tuition. §2¶1ṣ4No additional license is required for faculty or students. §2¶1ṣ5Your students are encouraged to use UDK inside or outside of school to learn game development.
§2¶2§2¶2ṣ1The UDK is also FREE for non-commercial use. §2¶2ṣ2Feel free to use the UDK to make any application (game or otherwise) for free distribution. §2¶2ṣ3No additional license (beyond the EULA) is required. §2¶2ṣ4Just go for it.
§2¶3§2¶3ṣ1NOTE: We are extending the $50,000 royalty free revenue benefit to all existing UDK commercial licensee. §2¶3ṣ2Please click the the license link in the license acceptance email we sent you to see the updated terms of your license.
§2¶4§2¶4ṣ1If 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.
§2¶5§2¶5ṣ1A 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):
§2¶6§2¶6ṣ1If 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. §2¶6ṣ2This license fee only applies to UDK seats used for development; ṣ2.1no license fee is required for hardware where only the resulting applications are installed.
§2¶7§2¶7ṣ1If 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. §2¶7ṣ2Instead 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 $50,000 (US) in UDK related revenue, and a 25% royalty on UDK related revenue above $50,000 (US). §2¶7ṣ3UDK related revenue includes, but is not limited to, monies earned from: ṣ3.1sales, services, training, advertisements, sponsorships, endorsements, memberships, subscription fees, rentals and pay-to-play. §2¶7ṣ4Here are some examples:
§2¶7.1§2¶7.1ṣ1A warehouse company uses UDK to create an application for employee safety training. §2¶7.1ṣ2They develop it on one computer and then install the resulting application on two computers for their internal employees to use. §2¶7.1ṣ3They 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.
§2¶7.2§2¶7.2ṣ1A team creates a game with UDK that they intend to sell. §2¶7.2ṣ2After six months of development, they release the game through digital distribution and they earn $60,000 in the first calendar quarter after release. §2¶7.2ṣ3Their use of UDK during development requires no fee. §2¶7.2ṣ4Upon release they would pay US $99.99 for a Royalty Bearing license. §2¶7.2ṣ5After earning $60,000, they would be required to pay Epic $2,500 ($0 on the first $50,000 in revenue, and $2,500 on the next $10,000 in revenue). §2¶7.2ṣ6On subsequent revenue, they are required to pay the 25% royalty.
§2¶7.3§2¶7.3ṣ1An architecture firm uses UDK to create a live walk-through presentation for their customers. §2¶7.3ṣ2They charge their customers a fee of $500 for each walk-through. §2¶7.3ṣ3Before they begin to charge customers for the walk through, they would pay Epic US $99.99 for a Royalty Bearing license. §2¶7.3ṣ4They sell walk-through presentations to 100 customers in the first quarter, bringing in $50,000 in revenue. §2¶7.3ṣ5No payment would be required to Epic for that first $50,000. §2¶7.3ṣ6In the second quarter, they sell another 100 walk-thoug50h presentations, bringing in another $50,000 in revenue. §2¶7.3ṣ7They are required to pay $12,500 to Epic. §2¶7.3ṣ8On subsequent revenue, they are required to pay the 25% royalty.
§2¶8§2¶8ṣ1The UDK Commercial Use License may be executed by an individual or a corporate entity. §2¶8ṣ2If 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. §2¶8ṣ3If that is not feasible, please designate a single individual to contact us who will be responsible for executing the license and fulfilling the terms.
§2¶9§2¶9ṣ1A note to developers under the age of consent (minors): ṣ1.1Please have your parents contact us for a UDK Commercial Use License, as we cannot enter into a license agreement with a minor.
§2¶10§2¶10ṣ1If you have any questions about licensing UDK or require custom license terms, source code licenses, or use on consoles please email udklicensing@epicgames.com for more information.