Common use of Running Royalties for Licensed Products Clause in Contracts

Running Royalties for Licensed Products. Licensee agrees to pay and shall pay to TSRI a running royalty on annual Net Sales of Licensed Products, on a Licensed Product-by-Licensed Product and country-by-country basis, in each country in which: (A) the manufacture, use, importation, sale or offer for sale of such Licensed Product would, in the absence of the license granted pursuant to Section 2.1, infringe at least one Valid Claim of the Licensed Patent Rights in such country, at the following applicable rates: (i) 2.0% of Net Sales of any Licensed Product that contains an Identified Compound; and (ii) 1.5% of Net Sales of any Licensed Product that does not contain an Identified Compound; and (B) the manufacture, use, importation, sale or offer for sale of such Licensed Product is not covered by a Valid Claim in the country of sale, but is covered by at least one Valid Claim in a Major Market (a “Non-Patent Product”), at the following applicable rates: (i) 1% of Net Sales of any Non-Patent Product that contains an Identified Compound; and (ii) 0.75% of Net Sales of any Non-Patent Product that does not contain an Identified Compound.