Common use of Breach of intellectual property rights Clause in Contracts

Breach of intellectual property rights. 26.1 The supplier shall, at its own expense and risk and without delay, defend against claims by third parties concerning breach of intellectual property rights. Should a third party initiate procee- dings against the supplier, the supplier shall without delay inform the customer in writing. If the third party asserts claims directly against the customer, the supplier shall, upon the first request of the customer and to the extent possible under the relevant code of procedure, participate in the lawsuit. The supplier undertakes to bear all costs (including compensation for damages) incurred by the customer due to the proceedings and any settlement of the lawsuit out of court. If the dispute is settled out of court, the supplier is only required to assume the agreed payment to the third party if the supplier agreed to the payment in advance.