Ludocraft grants a games studio a licence to exploit its graphics engine, analysed as a right to use (conclusion given by the case); the engine is made available to the studio on 1 July 20X1, the start of the licence period. The studio pays a flat fee of 50,000 and 0.75 for each copy sold of a game developed with the engine. It sells 40,000 units copies in the second half of 20X1 and projects 100,000 units for 20X2. Calculate the royalty portion and Ludocraft's total revenue for 20X1.
- Flat licence fee
- 50,000
- Royalty per copy sold
- 0.75
- Copies sold in 20X1
- 40,000
- Copies projected for 20X2
- 100,000