Common use of Credit for Third Party Royalties Clause in Contracts

Credit for Third Party Royalties. In the event that a party obligated to pay royalties under this Agreement must obtain a license to Third Party patents in order to practice any license granted to it under this Agreement with respect to a product, then such party may reduce the royalty otherwise owing on Net Sales of such product […***…] of any royalty payments made under such Third Party license; provided, however, that the royalty otherwise payable under the applicable provision of this Agreement during any quarter shall not be reduced by […***…]; provided further, that such credit shall not apply to royalty payments made by Allergan pursuant to Section 8.6(b).

Credit for Third Party Royalties. In the event that a party obligated to pay royalties under this Agreement must obtain make royalty payments under a license to from a Third Party in respect of any patents in order that are necessary to practice any license granted to it under this Agreement with respect to a productdevelop, make, have made, use, sell, have sold or import an Allergan Product, Independent Product or ACADIA Product, as applicable, then such party may reduce the royalty otherwise owing on Net Sales of such product by […***…] of any the royalty payments made under such Third Party license; provided, however, that the royalty otherwise payable under the applicable provision of this Agreement during any quarter shall not be reduced by more than […***…]; provided further, that such credit shall not apply to royalty payments made by Allergan pursuant to Section 8.6(b).

Credit for Third Party Royalties. In the event that a party obligated to pay royalties under this Agreement must obtain a license to Third Party patents in order to practice any license granted to it under this Agreement with respect to a product, then such party may reduce the royalty otherwise owing on Net Sales of such product […***…] of any royalty payments made under such Third Party license; provided, however, that the royalty otherwise payable under the applicable provision of this Agreement during any quarter shall not be reduced by […***…]; provided further, that such credit shall not apply to royalty payments made by Allergan pursuant to Section 8.6(b).