Morgan Lewis: Royalty Refresh (Part 1)
The first in a series of posts on royalty calculation and payment from Morgan, Lewis & Bockius focuses on issues related to defining the relevant scope of royalty calculations in an agreement.
“While the specific terms governing a royalty will vary based on numerous factors, including the nature of the products and the underlying licensed materials and the contemplated commercialization structure, many concepts are useful across the board.” according to the post’s authors, Mike Pierides and Eric J. Pennesi.
They discuss fixed amounts vs. percentage of revenue, gross vs. net revenue, revenue from initial sales and renewals and add-ons, specific revenue exclusions, and discounts.
