Common use of Reduction for Third Party Royalties Clause in Contracts

Reduction for Third Party Royalties. In the event that Licensee, its Affiliate(s) or Permitted Sublicensee(s), in its reasonable judgment, determines it to be necessary or desirable to license in Third Party patents or technology relating to the Licensed Product and is required to pay royalties to one or more Third Parties in respect of such patents or technology (that in the absence of such royalty payments would be infringed by the researching, making, using, selling, distributing, importing or exporting of the applicable Licensed Product) in order to enable Licensee, such Affiliate or such Permitted Sublicensee to realize Net Sales, then the royalties otherwise payable to Licensor in respect of such Net Sales shall be reduced by []* the royalties paid to such Third Parties; provided, however, that in no event shall such reduction exceed []* of the royalties on such Net Sales otherwise due to Licensor.

Reduction for Third Party Royalties. In the event that Licensee, its Affiliate(s) or Permitted Sublicensee(s), in its reasonable judgment, determines it to be necessary or desirable to license in Third Party patents or technology relating to the Licensed Product and is required to pay royalties to one or more Third Parties in respect of such patents or technology (that in the absence of such royalty payments would be infringed by the researching, making, using, selling, distributing, importing or exporting of the applicable Licensed ProductDengue Vaccines) in order to enable Licensee, such Affiliate or such Permitted Sublicensee to realize Net Sales, then the royalties otherwise payable to Licensor in respect of such Net Sales shall be reduced by []* **] the royalties paid to such Third Parties; provided, however, that in no event shall such reduction exceed []* **] of the royalties on such Net Sales otherwise due to Licensor.