Royalty

Details on the Wonderland Engine royalty and FAQs.

To offer the use of Wonderland Engine for free, we switched to a royalty based license in March 2021. Read more about it in our blog post. Later, in May 2023, we set a threshold of 120,000 USD Wonderland Engine project revenue per year that companies could make without paying royalties. Read more about it in our blog post.

This means that you can use Wonderland Engine for free to build your project, without any upfront cost, but once you make more than 120,000 USD revenue per year off of the products you built, we require a royalty in form of 10% of your revenue to allow us to continue to improve and grow Wonderland Engine.

See Release a Product for more information.

FAQs 

Below is a list of frequent questions to help you understand how the terms of the EULA apply, but in doubt, refer to the EULA itself.

When do I need to pay royalties? 

After you made a total of 120,000 USD from Wonderland Engine based products, any revenue after that is affected by royalty. Royalties are paid quarterly.

Example

You earn 100,000 USD revenue from a product in the first quarter of the first year: No royalty is owed.

You earn 20,100 USD revenue from the same and another product in the second quarter: (120,100 USD - 120,000 USD)*10% = 10.00 USD

You earn 10,000 USD revenue from your products in the third quarter: (130,100 USD - 120,000 USD)*10% = 1,010.00 USD As the 10 USD for the first two quarters has been paid, the royalties for this quarter amount to 1,000.00 USD.

If in the following year, you earn no more than 120,000 USD revenue from all Wonderland Engine based products, again, no royalty would be owed for that year.

Which revenue sources are affected by royalty? 

Any revenue that can be attributed to a product that is based on Wonderland Engine, e.g. sales of the product, in-app ad revenue, in-app purchases (physical and digital), revenue from licensing or proceeds payed by a publishing platform.

If I sell a product to a client, do I have to pay royalty? 

Yes, subject to the 120,000 USD per year threshold.

If I sell a product to a client, do they have to pay royalty? 

You are responsible to ensure the client is also a licensee of Wonderland Engine and therefore the same terms apply to them as do to you.

If your client makes money through any of the affected revenue sources (e.g. through direct sales of the app, in-game purchases, in-game ad revenue, …), they owe royalty for this revenue. This revenue is subject to the 120,000 USD per year threshold.

How can I ensure my client is a Wonderland Engine licensee? 

You can attach the EULA with the agency contract your client signs with you and add a statement that states that the client is required to accept the terms in the attachment.

It is usually worth making the client aware that this requires them to send us quarterly revenue statements for revenues attributable to the product.

How does royalty apply to freelancing? 

How royalty applies if you are hired by a company to work on a Wonderland Engine product depends on whether you build all or only some of the product:

Is the product to a majority built by you, you are selling the project or product you built and the payments from the client are affected by royalty.

Is the product to a majority being built by the client, your work is a service and you do not owe us any royalty.

In any case, make sure that your client also is a licensee of the engine by accepting the Wonderland Engine EULA, otherwise royalty on your client’s revenue may be due by you.

Do I need to pay royalty on Tutorials Videos or Streams? 

No. Feel free to drop a link to your video or stream into the Discord Server, though!

How do I pay royalty? 

See Release for details.

In case you have trouble paying royalty, please contact [email protected].