Patent Royalty Agreement

Licences can be used for many purposes and across a wide range of subject matter. In many cases, a licence allows one party to use something owned by another party in return for payment.

Payment under licences often takes the form of royalties, usually regular payments calculated as a percentage of income generated by the licensee’s activities.

This Patent Royalty Agreement is designed for royalty-based patent licensing arrangements. It is broad enough to cover many different patented inventions and can be used with both product patents and process patents.

Patent Royalty Payments and Minimum Yearly Royalties

The licence granted by this agreement may be either exclusive or non-exclusive.

Payment is made by an initial fee, usually paid on the date of the agreement, followed by royalties.

Royalties under this agreement are paid on a quarterly basis and are subject to a minimum yearly aggregate. If the total royalties due over that year do not meet the minimum level, the licensee will be required to make up the difference.

Product and Process Patent Licensing

The agreement is suitable for licensing patent rights relating to product patents or process patents.

This makes it suitable for a range of patented inventions where the licensor wishes to grant rights in return for an initial fee and ongoing royalty payments.

Relationship with the Patent and Know-How Licence

The terms and conditions of this document are substantially the same as those contained in the Patent and Know-How Licence, which is also available from Simply-Docs.

Users of either document will not need to download the other.

Key Terms Covered by the Patent Royalty Agreement

The agreement covers the main legal and commercial terms needed for a patent royalty licence, including:

• technical information and improvements;
• confidentiality;
• grant of rights;
• payment;
• records and reports;
• performance;
• patents;
• term and termination;
• force majeure; and
• general terms, no waiver, severance, notices, law and jurisdiction.

The schedules cover the patent rights, secrecy undertaking and formal patent licence for registration.

Patent Royalty Agreement is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.