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Royalty Agreement
"I need a Royalty Agreement to license our new software patent to a Singapore-based manufacturer, with quarterly royalty payments of 5% of net sales and minimum annual guarantees of SGD 100,000, starting from March 2025."
1. Parties: Identification of licensor and licensee with full legal names and addresses
2. Background: Context of the agreement and brief description of the intellectual property involved
3. Definitions: Key terms used throughout the agreement including 'Intellectual Property', 'Royalty Rate', 'Territory', etc.
4. Grant of Rights: Specific rights being licensed and their scope
5. Royalty Payments: Payment terms, calculation methods, and payment schedule
6. Records and Auditing: Requirements for maintaining records and rights to audit
7. Term and Termination: Duration of agreement and circumstances for termination
1. Quality Control: Standards for product quality and inspection rights - used when licensing trademarks or patents for product manufacturing
2. Sublicensing Rights: Terms for sublicensing if permitted - used when licensee may need to sublicense rights to third parties
3. Minimum Guarantee: Minimum royalty payments regardless of actual sales - used when licensor wants to ensure minimum revenue
4. Territory Restrictions: Geographical limitations on use of IP - used when rights are territory-specific
1. Schedule 1: Licensed Intellectual Property: Detailed description of IP being licensed including registration numbers
2. Schedule 2: Royalty Calculation Methods: Detailed formulas and examples of royalty calculations
3. Schedule 3: Reporting Templates: Standard forms for sales reports and royalty calculations
4. Schedule 4: Quality Standards: Detailed quality specifications if applicable
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