Earlier quoted context omitted.
I've always wanted to know how the 5% royalty is enforced. Other, much lesser known, engines have attempted to do something of this sort by acting as an intermediary eg. publisher, planning to pay developers after they were paid by Apple. For obvious reasons that was immediately dismembered by the community. The only way I can figure is they'll ask for an iTunes connect login so they can check on the numbers for them…
Lawsuits. I imagine the revenue distribution would follow a power law here. So it would only really make sense for Epic to go after non-compliant "whales", where the unpaid royalties exceed the legal costs. Also, the more profitable the project, the lower the non-compliance rate, probably. It makes little sense to defy the royalty agreement if you have a successful project.
Whereas if you're an indie developer writing image processing code for example, it is going to be hard to find infringers and harder to strongarm them into coughing up licensing fees.
I expect this has the effect of keeping source code behind closed doors that would otherwise be public.