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Royalty Split Agreement Template for New Zealand

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Key Requirements PROMPT example:

Royalty Split Agreement

"I need a Royalty Split Agreement for a software application I've developed with two other developers, where we want to split the revenue 40-30-30, with quarterly payments starting from March 2025."

Document background
The Royalty Split Agreement is essential for situations where multiple parties have rights to share in the income generated from intellectual property or creative works. This document is particularly relevant in New Zealand's commercial landscape, where it must comply with local contract law, intellectual property legislation, and tax requirements. The agreement typically arises when collaborators, rights holders, or business partners need to formalize their arrangement for sharing revenues from licenses, sales, or usage of intellectual property. It provides a clear framework for revenue distribution, helping prevent disputes and ensuring transparent financial relationships between parties. The agreement includes crucial elements such as royalty calculations, payment schedules, audit rights, and reporting obligations, all structured to align with New Zealand's legal and regulatory requirements.
Suggested Sections

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Explains the context of the agreement, including the nature of the intellectual property or assets involved

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Grant of Rights: Specifies the rights being granted and any territorial or usage limitations

5. Royalty Split: Details the agreed percentage split of royalties between parties

6. Calculation and Payment: Specifies how royalties will be calculated, payment frequency, and payment methods

7. Reporting and Auditing: Outlines requirements for royalty reporting and rights to audit

8. Intellectual Property Rights: Confirms ownership and protection of the underlying intellectual property

9. Representations and Warranties: States the parties' assurances regarding their rights and capabilities

10. Term and Termination: Specifies the duration of the agreement and circumstances for termination

11. Confidentiality: Establishes obligations regarding confidential information

12. General Provisions: Includes standard legal clauses such as governing law, notices, and assignment

Optional Sections

1. Marketing and Promotion: Include when parties have specific obligations regarding promotion of the revenue-generating asset

2. Quality Control: Required when the agreement involves branded products or services requiring quality standards

3. Minimum Guarantee: Include when there's a guaranteed minimum royalty payment requirement

4. Sub-licensing Rights: Add when parties have the right to sub-license the intellectual property

5. Territory Restrictions: Include when the royalty split applies to specific geographic regions

6. Dispute Resolution: Add detailed dispute resolution procedures for high-value or international agreements

7. Tax Provisions: Include specific tax-related provisions for international agreements or complex tax situations

8. Force Majeure: Add when parties want specific provisions for handling unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Intellectual Property Description: Detailed description of the intellectual property or assets covered by the agreement

2. Schedule 2 - Royalty Rates and Calculations: Detailed breakdown of royalty percentages and calculation methodologies

3. Schedule 3 - Payment Terms: Specific details about payment timing, currency, and methods

4. Schedule 4 - Reporting Template: Template for regular royalty reports

5. Schedule 5 - Approved Sub-licensees: List of approved sub-licensees if applicable

6. Appendix A - Revenue Categories: Breakdown of different revenue streams and their treatment

7. Appendix B - Audit Procedures: Detailed procedures for conducting royalty audits

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries

Entertainment

Music

Publishing

Software Development

Technology

Media

Gaming

Biotechnology

Pharmaceuticals

Fashion

Consumer Products

Manufacturing

Research and Development

Digital Content

Telecommunications

Relevant Teams

Legal

Finance

Business Development

Intellectual Property

Licensing

Commercial

Royalty Administration

Business Affairs

Compliance

Creative Services

Content Management

Partnership Development

Relevant Roles

Legal Counsel

Intellectual Property Manager

Business Development Manager

Licensing Manager

Contract Administrator

Rights Manager

Finance Director

Royalty Administrator

Commercial Manager

Creative Director

Content Manager

Partnership Manager

Copyright Administrator

Business Affairs Executive

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Non Exclusive Royalty License

A New Zealand law-governed agreement granting non-exclusive rights to use intellectual property in exchange for royalty payments.

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Royalty Fee License

A New Zealand law-governed agreement establishing terms for licensing intellectual property rights in exchange for royalty payments.

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Royalty Split Agreement

A New Zealand-governed agreement that establishes terms for splitting royalty income between multiple parties.

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