Common use of Net Royalties Clause in Contracts

Net Royalties. If the Facility Operator licenses to a Licensee, such a Licensee’s obligation to make payments to the Sponsor shall commence from the date that the Net Royalties calculation is positive. Payments are payable in annual installments and are due the first day of March for Net Royalties calculations made for the Facility Operator’s prior fiscal year. The Facility Operator is responsible for notifying the Sponsor, on an annual basis, of Net Royalties received as a result of its licensing of intellectual property under this Agreement. Each Licensee shall agree to pay Sponsor an amount equivalent to 15% of the total cumulative Net Royalties, less any payments already made by such Licensee to the Sponsor in the previous years when Net Royalties were positive. Payments shall be made by check, made payable to the California Energy Commission, PIER Fund. Royalty payments resulting from the sale, license, or assignment of each Subject Invention, Copyrighted Project Work or Other Intellectual Property right shall extend for a period of 15 years or until the underlying patent, copyright, or Other Intellectual Property protection expires, whichever occurs first.