A Revenue Royalty Agreement is essential when parties wish to establish a revenue-sharing arrangement under English and Welsh law. This document is commonly used in situations where one party grants another the right to exploit certain assets or intellectual property in exchange for a percentage of revenue generated. The agreement details calculation methods, payment schedules, reporting requirements, and compliance obligations, providing a comprehensive framework for managing ongoing revenue-based relationships. It's particularly relevant in industries where intellectual property licensing and revenue sharing are common practice.
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1. Parties: Identifies the contracting parties and their details
2. Background: Sets out context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Calculation of Royalties: Specifies how royalties are calculated and what revenue is included
5. Payment Terms: Details payment frequency, method, and currency
6. Reporting Requirements: Outlines revenue reporting obligations and timeframes
7. Audit Rights: Specifies rights to audit revenue calculations and records
1. Minimum Guarantees: Used when parties want to ensure minimum revenue stream by establishing minimum payment obligations
2. Territory Restrictions: Used when royalties are territory-specific to define geographical limitations on revenue sources
3. Sublicensing Rights: Used when sublicensing is permitted to define rights to sublicense and related royalties
1. Revenue Calculation Methodology: Detailed explanation of how revenue is calculated including formulas and examples
2. Reporting Template: Standard format for revenue reports including all required fields and submission format
3. Excluded Revenue: Comprehensive list of revenue streams excluded from royalty calculations
4. Territory Schedule: Detailed list of included and excluded territories for royalty calculations
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