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I was going to ask this anyway, but it came up a little in this other thread (search for jdx to find the post). However to focus on the specific point... Unity3D's free license has a clause which stipulates:
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 Original post by frobOn the enforcement side of things, the company is very unlikely to enforce this clause unless you obviously fall outside the bounds.
Typo?

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 They can license it basically however they want. The very small fee they charge for the pro license is trivial (just 1% when you crossed over the $100K line) for any company who makes that much. Isn't it$1500 per developer? That's less trivial, especially if you're some kind of indie with several people working part-time.

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 Original post by d000hgTurnover != profit.
Quite, but it doesn't affect the outcome as much as one might expect.

This problem only arises if the team turnover was under $100,000 last year (so that they used Unity free), and this year is over$100,000 (so that they need to upgrade). Now, either the team turned a profit last year, in which case increased cashflow allows them to afford the licenses easily, or they showed a loss last year, in which case increased cashflow minus license costs doesn't seem to make them any worse off.

I will end with the observation that for a team of 2+ people, $100,000 profit per year is barely making wages, and if you have significant costs taking a chunk out of that, you might as well be working the grocery checkout [wink] #### Share this post ##### Link to post ##### Share on other sites Quote: Original post by swiftcoder Quote:  Original post by d000hgTurnover != profit. Quite, but it doesn't affect the outcome as much as one might expect. This problem only arises if the team turnover was under$100,000 last year (so that they used Unity free), and this year is over $100,000 (so that they need to upgrade). Now, either the team turned a profit last year, in which case increased cashflow allows them to afford the licenses easily, or they showed a loss last year, in which case increased cashflow minus license costs doesn't seem to make them any worse off. I will end with the observation that for a team of 2+ people,$100,000 profit per year is barely making wages, and if you have significant costs taking a chunk out of that, you might as well be working the grocery checkout [wink]

shouldn't profit be calculated after overhead and costs(e.g. wages and expenses)?

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> This problem only arises if the team turnover was
> under $100,000 last year {...} and this year is over$100,000

If a potential customer straddles a contractual term over time then it's a risk that would need to be assessed by the licensor ahead of executing any contract. For the licensee, it's a matter of negotiating a deal that spans the lifetime of the ongoing projects rather than on wobbly financials.

My point is simple: ALL contracts are negotiable. It's a matter of sitting down with the licensor and comming with reasonable terms for both parties. If that isn't achievable, then find another licensor.

> $100,000 profit per year is barely making wages Sorry for nit-picking, but let's get our accounting terminology straight here. Wages are expenses which are subtracted from income to make profits. Either you mean contribution margin or shareholder dividends, but it can't be wages. -cb #### Share this post ##### Link to post ##### Share on other sites I don't see the big deal. If you're making$100,000 gross, even if 99% of that is going to costs, that means you're spending $99,000 per year on costs, and an additional$1,499 is a drop in the bucket - sure that might mean you've gone from making a $1,000 profit for the year to a$499 loss, but there's really not that much difference between the two in "real" terms.

Also, the cost of the Pro license is a one-off: you might lose $499 this year, but (assuming everything else is the same) you'll be back to$1,000 profit next year.

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Oh, and IANAL
Cheers
Dark Sylinc