Unreal Engine Regulatory Frameworks & Compliance 2 — Questions and Answers
Question 1: Under the Unreal Engine End User License Agreement (EULA), what is the royalty rate owed to Epic Games once a product's gross revenue exceeds the royalty-free threshold?
- 3% of gross revenue
- 5% of gross revenue (Correct answer)
- 10% of gross revenue
- 2% of gross revenue
Correct answer: 5% of gross revenue
Epic charges 5% royalties on gross revenue after a product earns more than $1 million USD lifetime.
Question 2: Which Epic Games program allows studios to negotiate a custom license that eliminates or reduces the standard royalty obligation?
- Epic MegaGrants
- Custom License Agreement (Correct answer)
- Epic Games Store Publishing Agreement
- Creator Revenue Share
Correct answer: Custom License Agreement
Studios can sign a Custom License Agreement with Epic to negotiate bespoke royalty terms, often used by large publishers.
Question 3: A developer ships a product on the Epic Games Store exclusively. How does this affect the standard 5% Unreal Engine royalty?
- Royalty is waived entirely for EGS exclusives (Correct answer)
- Royalty increases to 7%
- Royalty remains at 5% regardless of distribution platform
- Royalty is deferred for 12 months
Correct answer: Royalty is waived entirely for EGS exclusives
Epic waives the 5% royalty for games distributed exclusively through the Epic Games Store.
Question 4: Under COPPA regulations relevant to US game developers, what age threshold defines a 'child' requiring parental consent before collecting personal data?
- Under 16
- Under 14
- Under 13 (Correct answer)
- Under 18
Correct answer: Under 13
COPPA (Children's Online Privacy Protection Act) defines children as individuals under 13 years of age.
Question 5: When distributing an Unreal Engine game on consoles, who is responsible for ensuring the game meets the platform holder's certification (cert) requirements?
- Epic Games directly
- The developer/publisher (Correct answer)
- The Unreal Marketplace team
- The platform holder's QA team exclusively
Correct answer: The developer/publisher
The developer or publisher bears full responsibility for meeting platform certification requirements; Epic provides the engine but not cert compliance.
Question 6: Which open-source license category is generally INCOMPATIBLE with Unreal Engine's commercial EULA due to copyleft provisions?
- MIT License
- BSD 2-Clause License
- GNU General Public License (GPL) (Correct answer)
- Apache License 2.0
Correct answer: GNU General Public License (GPL)
GPL's copyleft requires derivative works to be open-sourced, which conflicts with UE's proprietary commercial license.
Question 7: Unreal Engine's source code is available on GitHub under what access model?
- Fully public with no restrictions
- Restricted to registered and EULA-accepting Epic accounts (Correct answer)
- Available only to Custom License holders
- Open source under MIT License
Correct answer: Restricted to registered and EULA-accepting Epic accounts
Access requires creating an Epic Games account, accepting the EULA, and linking a GitHub account to the EpicGames organization.
Unreal Engine Regulatory Frameworks & Compliance 2
Under the Unreal Engine End User License Agreement (EULA), what is the royalty rate owed to Epic Games once a product's gross revenue exceeds the royalty-free threshold?