Common use of Patent Expense Reimbursement Clause in Contracts

Patent Expense Reimbursement. Sponsor shall reimburse UGARF for all of UGARF’s actual expenses incurred in filing for, prosecuting, and maintaining any and all UGARF Intellectual Property and Joint Intellectual Property (“Patent Expenses”). However, notwithstanding the foregoing, Sponsor is not required to reimburse UGARF for Patent Expenses incurred with respect to specific UGARF Intellectual Property rights and UGARF’s interest in specific Joint Intellectual Property rights if Sponsor affirmatively and by written notice to UGARF declines to license those rights. In that case, effective as of receipt of Sponsor’s notice or upon a later effective date stated in the notice, the declined rights shall be removed from the scope of any License Agreement, Sponsor shall no longer have any obligation to reimburse UGARF for associated Patent Expenses thereafter incurred, and UGARF thereafter shall have no obligation to Sponsor whatsoever with respect to such declined rights.