Industry Conventions Sample Clauses

Industry Conventions. Licensor understands, agrees and acknowledges, in addition to negotiating rights as described hereinabove, that the home entertainment industry, having evolved into greater sales of consumer entertainment software goods, and lesser rental product sales, requires Distributor, in order to acquire retail shelf space, must agree to take unsold overstock in addition to defective returns back from retailers. Licensor understands that each agreement Distributor has with retailer or distributors includes up to 100% return rights of unsold overstock, and Licensor further acknowledges that such returns do show up in reports as negative sales, independent of original sale, offsetting gross receipts accordingly for any given reporting period. Such returns, as authorized by Distributor with Licensor’s consent evident by signature to this agreement, can result in the Pictures showing negative sales for a given quarter on reports, should return credits exceed invoiced shipment for a given period. Licensor shall however not be subject to payout to Distributor resulting from negative sales balances, as Distributor will offset negative sales with positive sales, over a continued period of time. a. Licensor further understands, and agrees, that the “First Sale Doctrine” applies to this agreement; including that any dvd copies of the picture sold to a third party during term, become the property of such third party to exploit in perpetuity, for private use, for wholesale, or for rental by law without a requirement of Licensor’s or Distributor’s consent. Licensor understands that upon termination of the agreement, previously purchased dvd copies and blu ray copies of the picture, continue to circulate through wholesale and retail markets, as well as through rental outlets, until such copies of the picture expire naturally. Retail is not required to remove such copies, due to expiration or termination of this agreement.