Patents and Other Intellectual Property. In connection with the Company's acquisition of its six patents (the "Patent Portfolio") from Merlot Communications, Inc. ("Merlot") in November 2003, the Company agreed to pay Merlot contingent future payments equal to 20% of the net income (as defined in the acquisition agreement) of the Company from the sale or licensing of the Patent Portfolio after the Company achieves $4.0 million of net income for each patent comprising the Patent Portfolio ("Net Profit Payments"
Appears in 2 contracts
Sources: Securities Purchase Agreement (Network 1 Security Solutions Inc), Securities Purchase Agreement (Network 1 Security Solutions Inc)