“Black Myth: Wukong,” a highly anticipated AAA game developed by Chinese studio Game Science, has captured global attention for its visually stunning graphics and cutting-edge gameplay mechanics. The title even received public praise from tech magnate Elon Musk, who tweeted: “Impressive AAA game from China!” However, behind its technological prowess lies a complex legal framework — most notably, the use of Unreal Engine and the associated contractual obligations under its End User License Agreement (EULA).
Legal Framework: Unreal Engine and Its EULA #
Unreal Engine is developed and maintained by Epic Games and is licensed to developers under the terms of its End User License Agreement (EULA). This binding legal contract governs every aspect of how developers may use, modify, distribute, and commercialize products created with the engine.
In choosing Unreal Engine for “Black Myth: Wukong,” Game Science committed to full compliance with the EULA — including clauses related to royalty obligations, license scope, and intellectual property ownership.
Key Legal Clauses in the Unreal Engine EULA #
1. Royalties #
One of the most critical sections for commercial game developers is the Royalty Addendum. Under Section 4 of the Royalty Addendum, developers are required to pay 5% of gross revenue to Epic Games once a game exceeds $1,000,000 USD in revenue.
“Royalty payments are calculated by multiplying the royalty rate of 5% by the Royalty Revenue. ‘Royalty Revenue’ means all worldwide gross revenue attributable to each Royalty Product minus any allowed exclusions enumerated in Section 4(b) of this Royalty Addendum.”
Legal Commentary:
Given the global commercial success of “Black Myth: Wukong,” this clause has direct financial implications for Game Science. The first $1 million in gross revenue is exempt from royalty, but all subsequent revenue is subject to a 5% payment to Epic Games. This obligation requires precise revenue calculation and financial transparency.
Any failure to properly report or understate revenues may be deemed a breach of contract, potentially triggering legal liability, including damages or litigation. To mitigate this risk, Game Science should implement a robust financial audit and compliance mechanism to ensure royalty calculations are accurate and timely.
2. License Grant #
Section 2 of the EULA grants developers a non-exclusive, non-transferable, non-sublicensable license to use Unreal Engine technology for development purposes:
“Epic grants you a non-exclusive, non-transferable, non-sublicensable license to privately use, reproduce, display, perform, and modify the Licensed Technology in accordance with the terms of this Agreement (the ‘License’).”
Legal Commentary:
Game Science is permitted to use Unreal Engine for the development and publication of “Black Myth: Wukong.” However, the license cannot be sublicensed or transferred to third parties. The company may not use the engine for other unrelated commercial projects or reverse engineer its core technologies without Epic’s written approval.
If Game Science wishes to repurpose Unreal Engine for non-game applications (e.g., films, simulations, architectural tools), it must enter into a separate agreement with Epic Games.
3. Intellectual Property Ownership #
Unreal Engine’s EULA and the Epic Content License Agreement clarify that all intellectual property rights in the engine and its licensed content remain the property of Epic Games.
“As between you and us, you own all rights, other than rights in the Licensed Content or as stated in the Service-Specific Terms (as defined in Section 7), in the Projects you develop under this agreement, and we or our licensors own all title, ownership rights, and intellectual property rights in the Licensed Content.”
Legal Commentary:
Game Science retains ownership over all original game content developed using the engine — including character designs, narrative, soundtracks, 3D models, and in-game assets in “Black Myth: Wukong.” This ensures the developer’s full commercial control over its IP, including publishing, sublicensing, and derivative works (e.g., films, merchandise, cross-media projects).
However, this ownership does not extend to the engine or any part of its licensed content, including:
- Unreal Engine source code;
- Rendering systems;
- Physics engine components;
- Epic-provided templates or libraries.
Game Science may not modify, redistribute, or claim IP rights in any core Unreal Engine technology. Doing so would breach the EULA and may expose the developer to injunctive relief and financial penalties.
Conclusion #
While “Black Myth: Wukong” stands as a landmark for Chinese AAA game development, its use of Unreal Engine ties it to a highly structured legal framework. From royalty payments to license boundaries and IP ownership, Game Science must maintain strict compliance with the Unreal Engine EULA to avoid legal and financial risks.
As global commercialization expands, developers leveraging third-party engines must treat EULAs not as mere formalities, but as critical, enforceable contracts that govern the very foundation of their intellectual property strategy.
This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
