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Royalty Formulas


Technical Details

Copyright © 2006 by Pete Antoniak
18 Apr 06

1. Terms

1.1 Terms used in this document may be found in the EdUGames Dictionary of Terms.

2. Overview of the Content Creation Team

2.1 This document lists the manor in which Royalty Weighting Units (RWUs) are assigned to both Resources and Round. It is incorporated by reference into the EdUGames Author Contract. The total RWUs assigned to a Round or Resource is a measure of the size, value and complexity. RWUs for all the RWUs in a Round are added up to give a weighting for a Round.  Once the total weighting is known, then each contributor's percent contribution can be calculated.  It is from these calculations that royalty payments can be based.

2.2 As with a lot of things these days, the creation of content is often a team effort.  There are two principal divisions of work within the Ed-U-Games Round Creation organization and they are, Editors and Classifiers. There are two principal divisions of work within the Resource Creation organization and they are Project Management and Technical Management.  These are represented by the table as follows with the Dot Indents indicating hierarchy:

Staff Codes And RWU Table^
Code Title  Round Resource


Director- Content Development 2 1


..Director- Round Development 2 0


....Editor In Chief 3 0


......Editor 7 0


....Classifier In Chief 1 0


......Classifier 3 0


..Director- Resource Development 1 2


....Project Supervisor 2 1


......Project Manager 5 1


....Technical Supervisor 1 1


......Technical Manager 3 1

2.2.1 Editors are responsible for the subject matter of content material.  They are the expert in History and Science etc.  

2.2.2 Classifiers insure that each Round receives the proper classification in the AUCS through Key Word fields.

2.2.3 Project Managers manage projects as assigned.  A project might be to create a body of material on Astronomy.  The Project Manager would scope the work, decide the Resources needed and the Game Types to use and work with the Artists, Editors Classifiers and Authors to insure that all the material was covered. 

2.2.4 Technical Managers are responsible for the technical aspects of the Resources and Rounds.  They are concerned about the size and type of Resources, the  format of Rounds and make recommendations to the computer programmers as necessary.  A Project Manager may decide to include an image of a planet and the Technical Manager may work out a way to keep its size to a minimum.  The Technical Manager make decisions concerning image and audio formats etc.

2.3 As a target, approximately 25% of the RWUs for a Round are assigned to the support staff assisting the Authors and Artists and 75% to the Authors and Artists.  In the case of a Research Contracts and/or Research Associate Contracts, it is possible for multiple people to be involved in the creation of a Round or Resource, yet not have any ownership in it.  This is because the item would be considered a "Work For Hire" and the ownership would belong to the person or company paying the bills.

2.4 As the company staffs up, there may only be a single Project Manager or Technical Manager and no Supervisors or Directors.  In this case, the RWUs that would go to the latter positions will go to the PM and TM. 

2.5 In as much as  Rounds incorporate the RWUs of Resources, the assignment of RWUs to Resources is outlined first.  This document also outlines the flow of RWU information and the delineation of responsibilities for updating and correcting RWUs.

3. Royalty Assignment Field (RAF)

3.1 Each Round contains a RAF consisting of an alphanumeric text string of semicolon separated Royalty Owners Codes (ROCs) and numeric values. The ROC is a unique identifier that indicates the type of contribution and links the RAF of a Round to the Content Provider Database (CPDB).  The Numeric value assigned is a number representing the value, size and complexity of an item of Content.  Space separated codes list the Authors, Resource Providers and other owner contributions. The following code indicates the type of contribution and the assignment of RWUs by the staff.  Boxes left blank are a function of the effort involved in creating the Round or Resource and are address later in this web page.

Author Code And RWU Table^
Code Title


Author (Round)


Co-Author (Round)




Text Processor


Image Processor


List Processor


Midi processor


Recording Artist


Owner of copyright (song writer, book author, etc.)


Royalty Owner##


Sound Byte Processor


Video/Film Clip Processor


Staff code for added References, Sirt Codes, Key Words, Comments, and Links.  [See 8.1]

##The Royalty Code Owner may be the person or company that paid others (Authors etc..) to create the material. In many cases this will be EdUGames as a company and will carry the EDGn code with the n indicating the internal accounting code.  This also allows for the buying and selling of Royalty ownership, while still giving recognition to the original Authors.

An example of a complex RAF might look like

",aPRA1 90; pSRT3 5; gJTY1 2; jPRA4 2; xAJK4 5; tKLM1 6; vAFG3 60; oABC1 400; iKRG4 15; cRMM1 15; zQWE02 0; rPRA1 15,"

PRA1 is the Round Author and gets 90 RWUs,

SRT3 is the Project Manager and gets 5 RWUs.

JTY1 is the Project Supervisor and gets 2 RWUs.

PRA4 is the Project Supervisor and gets 2 RWU.

KLM1 is the Technical Manager and gets 6 RWUs [Note: He/She is also probably the Supervisor and Director.  The rule being that if you don't have a boss, you get his/her RWUs]

AFG3 is a Video Processor and gets 60 RWUs,

ABC1 is a Copyright Holder and gets 400 RWUs,

KRG4 is an Image Processor and gets 15 RWUs.

RMM1 is a Copyright Holder and gets 15 RWUs

4. Determination of RWUs

4.1 RWUs for Round are calculated by a computer program (tool) and placed into the RAF of the Round during the verification and acceptance process by the Technical Manager/Classifier.

4.2 RWUs for Resources are determined by the Resource Library Manager (A real live person) based on his/her judgment (See Disputes Over Assignment of RWUs, Section 9.2.1 below).  RWU are measured in whole numbers (No fractions). Formula division in the determination of an RWU is done in integer division in which there is no remainder. (Example 4 DIV 2 = 2, 5 DIV 2 = 2, 8 DIV 3 = 2, etc..)

4.3 Except as specifically excepted in 4.3.1, Round RWUs for the Program/Technical and Classification functions are listed in Author Code and RWU table above.

4.3.1 The following are excepted from the RWU determination in 4.3 because they are used so often, that to do so would not be balanced Date and Number lines for Game D and N respectively Answer Lists that use the dialog box in Games I, H, S and F

4.3.2 Adding up the above RWUs provides for 30 RWUs per Round and 7 per Resource to be distributed among the supervisory staff. The above code anticipates a staff of people with an overall Program Director above Project /Technical Directors who in turn supervise Project/Technical Supervisors who in turn supervise Project/Technical Managers. The letter code "y" allows for the same Manager to cover both branches and anticipates a time when there will be only a few experts to help Authors.  It also allows for the same person to handle both the Project Management and Classification of Rounds, reporting to two different Supervisors.  If there is no Supervisor or Director or Manager, then the lower functionary will receive the RWUs of the vacant position.  In this case a Director of Content Development receive 30 RWUs (2+2+3+7+1+3+1+2+5+1+3) for a Round.  In the case of the first several thousand, this means that the Author who is also the Project/Technical Manager may get the entire amount, in which case the code will show the author with 30 more RWUs and no other codes involved.  Project/Technical Supervisors and Managers may develop alternate formulas to divide their RWUs among support staff as necessary.

4.3.3 As the organization builds up, Managers and Supervisors may negotiate with trainees for a share in their assigned RWU.

5. The Flow of RWUs in the Creation of Content Material

5.1 Before a Round Author can use a Resource, it must be placed into the Resource Library and listed in the Master Resource Database (MRDB). The Resource Library is self explanatory, the MRDB is a database that assigns ownership, weighting and other information about Resources in the Resource Library.  When an Author submits a Round for inclusion into the Master Database it is assigned a unique serial number and verified by a computer program that checks for errors, adds up the Round RWU weighting and places the results into the Royalty Assignment Field (RAF) of the Round.  It is automatically placed into the Master Database within seven days unless requested otherwise by the Author.  Once in the Master Database it may be used in Sets and transferred to Network Databases.

When a Resource Provider submits a Resource, it is approved by the Director of Programs, given a unique file name and other identifiers as needed and placed into the Resource Library.  The assigned file name, ROC of the Resource Provider and weighting and other identifying information are placed into the Master Resources Database (MRDB).  The computer tool that assigns ROC to the Round uses the MRDB in the Round verification and ROC assignment process.

6. Implication of the RWU Assignment Process

6.1 It is important to understand that corrections to RWU assignments after a Round is verified or after a Round has been copied into a Network Database will not show up in royalty payments.  EdUGames will provide a timely means for Content Providers (CP's) to dispute RWU assignment, however, once assigned, they can only be corrected in the MDDB for  Rounds and MRDB for Resources.  EdUGames is not responsible for correcting any assignments of RWUs for Resources after they have been copied into Network Databases.

6.2 EdUGames shall assemble and maintain a Master Resources Database (MRDB).  Each Resource shall be linked to the Content Providers Database by a Royalty Owner Code (ROC).  Each Round that uses a Resource shall contain a ROC and RWU for each Resource used. The standard notation for this will be:
A lowercase letter indicating the type of contribution (See Paragraph 3 )---Example: "aPRA2 30".
Rounds with multiple resources shall concatenate the codes with semicolons between each. ---Example "aRKA1 20; vABC1 70;pRNM1 10".

6.3 Only Resources that are in the Master Resource Library may be used by Round Authors.   If a particular resource is needed and not available, the Round Author shall notify EdUGames of the needed Resource along with the information necessary to obtain or create it.   EdUGames will attempt to acquire it.  If it is a resource that must be created, such as a medical drawing, EdUGames will attempt to either create it in-house, contract to an outside source to create it, or request that an outside source submit it to the Library as an Resource Provider.

6.4 If EdUGames is unable or unwilling to obtain the Resource then the Resource can't be used in the Round.  If an Author feels strongly enough about a Resource, he/she is always free to obtain it and submit it to the Master Resource Library as a Resource Provider.

6.5 All Resource Library Resources shall be available to all Authors for inclusion in their Rounds.  All Rounds  are available to be used by Set Editors and Game Masters.  This allows for the maximum revenue potential of all parties.

6.6 Authors are cautioned that the large memory and bandwith requirement of a resource may cause EdUGames to limit the inclusion of the Round in some Sets or Network situations.  Authors are free to create similar  Rounds using different Resources with less memory or coming up with ways to not use the resource.  The Hindenburg example could be used in three different Rounds, one using the video clip, one using a single picture, and one with just a text reference to the event.  The memory requirements in these three examples drop from over a Meg to less than one K.

7. Royalty Assignment Formula for Resources
In addition to the 30 RWUs assigned to the Project/Technical Staff for each Resource, the following RWUs are assigned for each Resources.

7.1 Single Frame Images (JPG File,GIF Files) Single Frame Scanned-in Images such as Pictures or other bit mapped graphic shall be assigned 5 RWUs for the copyright owner of the Image and 15 RWUs for the person who processed it into the form necessary for the game.  If items in the Image also have other intellectual ownership, such as a famous painting or images of a movie star, additional RWUs may be negotiated as necessary with the owners.  If the item is considered to be in the public domain, 5 RWUs would be assigned to the Appropriate Public Domain fund and 15 RWUs to the person who processed it.  If the item is created by a using a Royalty Free Map program owned by EdUGames, 5 RWUs' would be assigned to the EdUGames Tools Fund and 15 RWUs to the person who used the tool to create the program. Single Frame Images such as Diagrams and Maps created by the author and not scanned in shall be assigned 30 RWUs. The ruler/time lines used in Game D and N shall be assigned 5 RWUs.

7.2 Video Files, QuickTime Movies, Multi Frame Graphic

7.2.1 For Video Clips in which the action is continuous, such as famous events or actions: 20 RWU per second for the processor, plus 20 additional RWU per second if there is sound. The sound to be designated by the sound byte author initial in the table above.  The base line is MPEG 30 frames a second.   If the Video files has a copyright holder, 10 RWUs per second for the copyright holder for video and 10 per second for sound.

7.3 Sound Bytes

7.3.1 Twenty RWUs for each second of play for the copyright owner of the Sound Byte plus 20 RWUs for the sound byte processor.  In the case of Music or other performance oriented Sound Bytes, in which a recording artist records a song that is owned by a song writer, 10 RWUs per second of play for the recording artist and 10 RWUs per second of play for the song writer.  More complex situations in which there are multiple copyright owners will be negotiated.

7.4 Midi Music

7.4.1 Midi Music consists of music notation that is used by the computer or other Midi playback device to play music.  In HyperTalk programming language the notation might look as follows: "5cQ 5dW 5EmH...". In the above example there are 3 notes (5th octave "C" quarter note, 5th octave "D" whole note, 5th octave "E-minor" Half note).  The recorder of the notation shall receive 5 RWUs for each note recorded.  Copyright owners of the song shall also receive 5 RWUs for each note.

7.5 Lists

7.5.1 Unique to Game Screens "Q: Q and A" is the ability to create a set of categories or answers that can be used by many .  An example of this are questions about the States in which a map of the United States is used along with 50 state names and locations.  Rather then include the whole list of state names and locations in each Round, a reference may be made to a text file in the Directory "Lists" which contains the information.  Answer Lists can also be lists of possible answers to open questions such as a list of flower types etc. For Answer Files used in game (Q: Q & A), 3 RWUs will assigned for each answer (Number of answers Times 3)  with a minimum of 15 RWUs and a maximum of 60 RWUs. For General Answer Lists such as are used in Game I, H ,S and F, one RWU will be assigned for each 100 selections (Number of selections DIV 100) with a minimum of 10 RWUs.

7.6 Text Files

7.6.1 Text Files consist of blocks of text that can be repeatedly referenced.  An example might be a poem or famous address.  Game Screens H, G and J may use this text. Rather then repeat the text in a Round, a file can be created that contains the text.  The lines of text in the file are then called up by paragraph.

7.6.2 One RWU will be assigned for each 10 word in a Text File. (The number of words DIV 10) with a minimum of 10 RWUs.

8. Royalty Assignment Formula for 

8.1 Five [5]  RWUs will be added for each Reference, Sort Code, Key Word, Comment  and Link.  If the Round Author adds these, then he/she will receive the RWU credits, however, anyone on the Editorial Staff may also add these as necessary and if so, they will be credited the RWU credit.

8.2 For each Round, the number of RWUs is more complicated. because each Round is different.   Round A could include the placement of up to 24 Arrows and Letter, while Round L only requires the placement of one Master Location Token.  There Round A gets 10 RWUs for each Letter, Arrow etc used. Round L gets additional RWUs only if there is an additional Resource used, like an image other than the map.

The below table describe the assignment of RWUs as a basic of each Round.  Note, as an example, the Round E [Rows of Exceptions] does not have a base amount, but is entirely a function of the number of rows, while Round N [Guess the Number] is mostly a function of the base amount.  

The following table lists the RWUs for each Round.

Round RWU Allocation Table

Round Base + A Times + B Times Description A, Description B^
-A `40 `10 Letters; Arrows etc.
-B `50 `10 Frames;Images;Blocks etc.
-C `00 `05 `10 Items, Categories
-D `30 `10 Additional Resource used
-E `00 `10 Rows
-F `40 `10 `10 Images, Hints
-G `40 `10 `05 Frames; Arrows; Resources used etc. ,Answers
-H `70 `10 Hint Object
-I `40 `10 `10 Blocks, Hints
-J `40 `05 `10 Answers, Frames; Arrows etc.
-K `50 `10 Additional Resource used
-L `50 `10 Additional Resource used
-M `00 `12 Pairs
-N `30 `10 Additional Resource used
-O `00 `15 Items
-P `00 `08 Items
-Q `00 `10 `04 Questions, Answers
-R `00 `08 `04 Questions, Answers
-S `60 `10 `02 Hints, # of Notes
-T `30 `10 `05 Blocks, underlines etc, Answers
-U `00 `04 `04 Rows, Columns
-V `60 `02 Quick Time Frame Equivalents^

8.1.5 Examples: A Round for Game I which uses 4 Hints. Gets 40[Game I] + 40[4 Hints *10] ) + 10 for the Image Resource + 10 for the Answer Box Resource for a total of 100 RWUs. A Round for Game A which has 5 Arrows gets 40[Game A] + 50[5 arrows * 10] + 10 for the Diagram Resource for a total of 100 RWUs. A Round for game I which has 3 Hints and 8 covering areas that are designated by the Author, such as the Map of Washing DC example will get 40[Game I] + 30{3 Hints * 10] plus 80 [8 Covering items * 10] plus 10 for the image + 10 for the Answer Box resource for a total of 170 RWUs. A Round for Game F which uses 7 images and 2 Hints gets 40[Game F] + 20[2 Hints * 10] + 70 [7 Resources * 10] + 10 [The Answer Box] for a total of 140 RWUs.

9. Disputes Over Assignment of RWUs

9.1 Rounds

9.1.1 EdUGames uses a computer program to determine the assignment of RWUs for a Round at the same time the Round is given a unique serial number and checked for errors.  A copy of each Round, complete with serial number and RWU determination will be returned to the Author by EdUGames when it is placed into the Master Database. The Author has seven days from the date of email posting to indicate any disagreement with the determination.

9.1.2 After seven days, if not disputed,  EdUGames is not responsible for correcting or updating an RWU assignment.  If a Round Author disagrees with the assignment of RWUs after the seven day limit, EdUGames may attempt to come to an agreement expeditiously and revise the Round in the Master Database as appropriate, but is not required to revise any Network Database.  Rounds that are copied into Network Databases after revisions will contain the revised RWU assignment.

9.1.3 A Content Provider may expedite the availability of Rounds and Resources by responding to the initial request for final OK in an expeditious manor.

9.2 Resources

9.2.1 The Resource Library Manager determines the weighting of a Resource when it is given a unique file name. A list of the Resources submitted, complete with unique file name and weighting determination will be returned to the Resource Provider by EdUGames when placed into the Resource Library.  The Resource Provider has seven days from the date of email posting to indicate any disagreement with the determination.

9.2.2 After seven days, EdUGames is not responsible for correcting a RWU assignment.  If a Resource Provider disagrees with the assignment of an RWU after the seven day limit, EdUGames may attempt to come to an agreement expeditiously and revise the RWU Assignment in the MRDB as appropriate, but is not required to revise a Round assignment.  Rounds that are created or re-verified after revisions are made to the Master Database will contain the revised RWU assignment.

9.2.3 If a Content Provider feels strongly about correcting an RWU assignment that is in a Network Databases after expiration of the seven day period for correction, he/she can petition EdUGames by Email for an estimate of labor cost to make changes.  Within 21 days, EdUGames will provide an estimate of the labor costs to make appropriate changes to the Network Databases.  Said estimate will be good for 14 days from email posting.  Said Content Provider may then pay EdUGames to make the necessary corrections.

10) Disputes Over Methods of proportioning Monies to Royalty Owners

10.1 Ed-U-Games will use its sole discretion in proportioning the stated percent of the money made to Rounds.  In as much as there are many possible different source of income, [subscriptions, pay as you go per round, pay as you go per hour, license etc.] and there are many way of delivering the material [download a single Round, download an Edition, grant a license, sell a package, etc..] EdUGames can not guarantee that every Royalty Owner will be completely satisfied at all times in every situation with any method that is uses.  For example, a player plays for 15 minutes with a Set consisting of 23 Rounds and then adds another Set of 10 Rounds to the mix and plays a Set for another 20 minutes before he goes off-line.  He is on a subscription basics of $10.00 a month and this is part of 12 secessions during the month. The determination of how to proportion out the $1.20 to the owners of the Rounds that were downloaded in the two Editions along with the Rounds from the other 12 secessions is at the discretion of EdUGames.  Should EdUGames go by what was downloaded?, or try to track what was actually selected? Should EdUGames see how long a player was playing any one Round and proportion out the time?  EdUGames will most likely use the method that can be best understood and easily implemented.  Over time, most all methods should even out.  However, EdUGames can not guarantee that all methods are equal [See 10.2 below.]

10.2 Therefore in light of the statements in 10.1, Royalty Owners accept the statements in 10.1 as part of becoming a Royalty Owner and will limit disputes to situations where the method used is blatantly unfair and inconsistent, that this unfairness and inconsistency is obvious to the casual observer and that an alternative method purposed by the Royalty Owner is substantially more fare to all parties.

11) Updating and adding to Round and Resources

11.1 From time to time, some Round and Resources may require updating.   It is the responsibility of the Royalty Owners involved to do their applicable part of the updating.  If, after an attempt to notify the parties involved, such updating is not carried out, Ed-U-Games may, at its discretion, do the updating and charge the cost of said updating against the royalties of said owners.

11.2 Although a particular Round may be timeless, from time to time there is the potential to relate it to new and interesting References such as a web sites, books, movies or PBS programs and documentaries.  This may be done by inserting additional References into the Round.  By so doing, the Round becomes more usable and may therefore be selected more often.  Ed-U-Games may invite the original Round Author to provide said new References, or, at it's discretion, may use any other means of providing said references. When this is done, 4 RWU will be added to the RAF of the Round for each additional reference and credited to the one who did the work.