Construct 3 Personal Licence Concerns

Hello.

In quite a lot of countries you must be registered as sole trader (aka sole proprietor) or as company/partnership in order to be able to sell any kind of tangible or intangible goods and report taxes on that type of income as either personal (sole trader) or dividends/salary/director's pay (company/partnership).

In the current version of Personal Licence agreement, there is a provision that prohibits people, as any type of business (including sole trader/proprietorship), from using the Personal Licence to earn money off developed games while at the same time it allows unrestricted monetisation.

I believe this kind of issue must be addressed. It may not affect everybody but since it affects me, it might as well affect other people, too.

Tom

Ashley

I'd love to see a response to this question.

It's the same for Germany.

But I believe they already mentioned in looking into this in some thread.

As far as I understand, if you're using the personal licence, basically don't report your income officially and you can do whatever you want.

If you're a registered business/sole proprieter, you are to use the business license.

As far as I understand, if you're using the personal licence, basically don't report your income officially and you can do whatever you want.

If you're a registered business/sole proprieter, you are to use the business license.

Correct, but in some countries you need to register as such if you make any income from anything.

I think they said somewhere that individuals who are in that group are excluded from business license, but only Tom can answer that.

Again, if you're registered and making money, you are not supposed to be using the personal license.

In the current version of Personal Licence agreement, there is a provision that prohibits people, as any type of business (including sole trader/proprietorship), from using the Personal Licence to earn money off developed games while at the same time it allows unrestricted monetisation.

The current version of the Personal License also has an exception that allows startup businesses (ie., has made $5000 or less) to use the personal license.

Wouldn't this apply to you as well?

The licensing is changing from C2 to C3, the $5,000 USD cap is no longer going to be an option .

As a sole trader, you have two activities:

• Personal activities
• Sole trader acitivities

If you're using C3 for purely personal acitivites, not related to your sole trader status Personal Edition is fine.

If you're using C3 for your sole trader business or generating income from your projects which is being accounted for in your sole trader business you need a business edition. A lot of sole traders I imagine will fall into the Startup Business license, not the full license.

Having said all that, we realise there's an awkward transition here for people who currently are using the personal edition of C2, and are looking to upgrade to C3 - for example in Germany individuals must register as sole traders if you want to garner any income.

We're thinking about a solution for this, but I have said that anyone who falls into this category we can do the following for the initial year:

• Buy a C3 startup business licence/business license as appropriate
• Email support
• We will then refund the majority of the payment so the total you have paid is the same as the Personal Edition with the discount applied (~$50 USD)

Hope that answers the questions.