Existing Third Party Royalties Clause Samples
The 'Existing Third Party Royalties' clause defines the parties' responsibilities regarding royalties owed to third parties for intellectual property or rights used under the agreement. It typically specifies which party is responsible for identifying, paying, or reimbursing these royalties, and may require disclosure of any such obligations that predate the agreement. This clause ensures that both parties are aware of and allocate the financial risk associated with pre-existing royalty obligations, preventing disputes over unexpected costs and clarifying who bears the burden of these payments.
Existing Third Party Royalties. Kadmon shall be solely responsible for, and shall otherwise pay promptly when due, all Existing Third Party Royalties; provided, that, if Kadmon fails to pay Existing Third Party Royalties, then Kadmon shall promptly provide AbbVie with copies of any demand Kadmon receives for payment regarding such Existing Third Party Royalties, and AbbVie shall have the right to make such payment on behalf of Kadmon. In such event, Kadmon shall promptly reimburse AbbVie any documented amounts paid by AbbVie or, at AbbVie’s election, AbbVie may offset such amounts paid by AbbVie against the Royalty Payments to be made by AbbVie to Kadmon.
Existing Third Party Royalties. Durect shall be solely responsible for payment of [**] percent ([**]%) of all financial obligations to [**] under the [**] Agreement.