Common use of Have Made Rights and Royalties Clause in Contracts

Have Made Rights and Royalties. If Licensee exercises its “have made” right hereunder, Licensee shall be responsible for the payment of all royalties due hereunder directly to Tessera for such assembly of Licensed Products regardless of whether or not the assembler of the Licensed Product is a Licensed Package Assembler. Nothing in this Paragraph II.A.1 shall prevent Licensee from agreeing with a Licensed Package Assembler that the Licensed Package Assembler shall report and pay royalties to Tessera under its license for all Licensed Products made for Licensee provided, however, that if such Licensed Package Assembler fails to report and pay such royalties, Licensee shall pay the unpaid royalties under this Agreement promptly upon notice by Tessera. Licensee shall have no obligation to pay an additional royalty under this agreement for products on which a Licensed Package Assembler has already paid a full royalty under its agreement with Tessera. Any such agreement reached between Licensee and a Licensed Package Assembler shall require such Licensed Package Assembler to clearly identify Licensed Products made for Licensee in reports to Tessera, and Tessera shall be given notice of such agreement.