Common use of Increased Functionality Clause in Contracts

Increased Functionality. If Licensee, Licensee Affiliate, Authorized Recipient or any third party causes or permits a Licensed Product to be capable of additional functionality after it is first Sold, and such additional functionality would have required a royalty greater than the royalty owed for the Licensed Product upon its first Sale, then in addition to the royalty owed Licensee shall also pay Licensing Company the difference between the greater royalty and the royalty already owed. Licensee shall separately identify the Licensed Product with additional functionality, and the circumstances relating to the additional functionality, in the Royalty Reporting Form for the monthly period in which the Licensed Product became capable of additional functionality.

Increased Functionality. If Licensee, Licensee Affiliate, Authorized Recipient or any third party causes or permits a Licensed Product to be capable of additional functionality after it is first Sold, and such additional functionality would have required a royalty greater than the royalty owed for the Licensed Product upon its first Sale, then in addition to the royalty owed Licensee shall also pay Licensing Company the difference between the greater royalty and the royalty already owed. Licensee shall separately identify the Licensed Product with additional functionality, and the circumstances relating to the additional functionality, in the Royalty Reporting Form for the monthly period in which the Licensed Product became capable of additional functionality.. Reference Copy