Royalty Distribution Procedures

Technical Details

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Copyright © 2005 by Pete Antoniak
1 June 2005

1. Background

1.1 This document details the manor of distribution of royalties by EdUGames to Authors and Resource Providers (hereafter to be included in the term Author), for content material used in the EdUGames® computer program. It is incorporated by reference into the EdUGames Author Contract.

2. General Provisions

2.1 Unless addressed in the Specific Provisions below:

2.1.1 Royalties will be based only on moneys actually received by EdUGames. If EdUGames does not receive money for the use of content material, it is not obliged to give compensation to Authors. This includes, but is not limited to, bounced checks, unpaid bills, shareware which is not registered, pirated material and illegally copied material. EdUGames may retain royalty payment for returns and anticipated legal costs in conformance with industry standards and accepted accounting practices.

2.1.2 Royalties will be based on Royalty Weighting Units (RWUs) as described in the Document EdUGames Royalty Formulas which is incorporated into this document and the EdUGames Author Contract by reference.  Royalties will only be paid on the sale or use of Rounds and Sets and the supporting Resource Library material used in Rounds and listed in the Royalty Weighting Units field of said Rounds.

2.1.3 For all moneys received that are not directly associated with Rounds, EdUGames is free to use any reasonable criteria it deems fair for determining that proportion of the moneys received for Rounds.  In the case of sales or licensing of the EdUGames® Program (driver) and logo items such as T-shirts and coffee mugs, for example, this would be nothing.

2.1.4 For moneys received that may be directly associated with Rounds, but not with any particular Round, EdUGames is free to use any reasonable criteria it deems fair for determining which specific Rounds to prorate the moneys to.

2.1.5 Authors are put on notice that, the School Model specifically promises that public schools will have access to EdUGames free of charge. The belief is that this will be more than compensated for by sales of subscriptions to homes.  However, this may take considerable time, or may never happen.  EdUGames is a commercial enterprise with plans for making money.  But like a lot of commercial enterprises, may not achieve its objectives.  Just like a book author, the publisher has high hopes of a best seller, but thing may not work out that way and the author may find that he worked long hours for less than minimum wages.  That's life.  On the other hand, the Authors may get recognition and a sense of self worth from their authorship that far exceed any monetary compensation.

3. Specific Provisions

3.1 Although, it is presently anticipated that the primary means of distribution of EdUGames material will be as a service over the Internet, EdUGames may package the driver with specific Rounds and Sets which will be called an Edition.  Royalties for an Edition will be based on the price paid to EdUGames for the Edition.

3.2 It is conceivable that EdUGames may be placed on a University or Corporation Server.  Royalties for game play in which the EdUGames System is placed on a Private or Semi Private server will be based on moneys received by EdUGames directly associated with the Rounds and Sets as outlined in the contractual agreement between EdUGames and the network server owners.  Such a contract may base moneys paid for Rounds on the individual use of each Round, the session, the time period or any other criteria that EdUGames and the server owner agree to.

3.3  Any moneys received from the sale of Resource disk or Resource Libraries are excluded from royalty payments because all royalties for Resources are based on Round usage, not resources distribution.  Resource Providers place no restrictions on the use of Resources by EdUGames or Round Authors.  EdUGames makes no promise that a Resource that is placed in the Resource Library will be used.  It is wholly possible, although undesirable for all parties concerned, that a Resource might never be used. It is however in EdUGame's best interest to weed out under-used resources to make efficient use of disk space and band width.

4. Royalty Payment Distribution

4.1 Royalty payments will be based on the moneys received by EdUGames during a calendar quarter.  Ownership of a Round is listed and proportioned in the Royalty Weighting Field of the Round.   The combined total of this ownership will receive a total of twelve (12) percent royalty proportioned out as to the weighting units so specified.  Set Authors will receive a three (3) percent Royalty.  Game Authors will receive a five (5) percent Royalty.

4.2 Royalties will be paid within 30 days after the last day of the quarter.

4.3 Royalties will be sent to the Address of Record of the Content Provider. It is the responsibility of the Content Provider to keep EdUGames informed of the latest address of the Content Provider.  Returned payments will be held for one year.  Royalties not claimed or cashed within one year of the date of payment will be forfeited back to EdUGames.

4.4 Royalty amounts for any Quarter to any one Content Provider that amounts to less than $20.00 may be held by EdUGames and added to the royalty payment for the next quarter unless specifically requested by Author.

4.5 Any and all local, national and international government fees, taxes, duties and licenses levied or accessed on a royalty payment will be deducted from said payment and paid to the appropriate entity by EdUGames as necessary of required by law.

4.6 Royalty payments will conform to all applicable laws as regards to tax, withholding, social security and other government fees, fines and payments as necessary or required by law.

5. Means of Payment

5.1 EdUGames will use electronic transfer of fund if feasible, followed by mailing checks using the US Postal Service.