Common use of Reduction of Royalties Clause in Contracts

Reduction of Royalties. If CTI initiates legal proceedings under this Section 6.4 in any country and DFCI does not independently join the proceeding, License may deduct up to * percent (*%) of CTI’s documented costs and expenses of the proceeding (including reasonable attorney fees) from running and minimum royalties payable to DFCI under Section 5.9(a) of this Agreement from sales of Licensed Products covered by the patent(s)-in suit. However, CTI may not reduce DFCI’s royalty payments by more than * percent of the amount otherwise due under Article V. If * percent (*%) of CTI’s costs and expenses exceed the amount of royalties deducted by CTI for any calendar year, CTI may, to that extent, reduce the royalties due to DFCI in succeeding calendar quarters for so long as CTI is actively engaged in legal proceedings to terminate the Substantial Infringement. However, CTI may not reduce total royalties due to DFCI in a given calendar quarter by more than * percent (*%). CTI’s right to reduce royalty payments to DFCI under this paragraph 6.4(c)(iii) applies only for so long as the Substantial Infringement continues.

Reduction of Royalties. If CTI LICENSEE initiates legal proceedings under this Section 6.4 7.2 in any country and DFCI does not independently join the proceeding, License LICENSEE may deduct up to [ * percent (*%) ] of CTILICENSEE’s documented costs and expenses of the proceeding (costs, including reasonable attorney fees) , from running and minimum royalties payable to DFCI under Section 5.9(a) of this Agreement from sales of Licensed Products covered by the patent(s)-in suit. However, CTI LICENSEE may not reduce DFCI’s royalty payments by more than [ * percent ] of the amount otherwise due under Article V. Section 3.1.5. If [ * percent (*%) ] of CTILICENSEE’s costs and expenses exceed exceeds the amount of royalties deducted by CTI LICENSEE for any calendar year, CTI LICENSEE may, to that extent, reduce the royalties due to DFCI in succeeding calendar quarters for so long as CTI is actively engaged in legal proceedings to terminate LICENSEE as the Substantial InfringementInfringement continues. However, CTI LICENSEE may not reduce total royalties due to DFCI in a given calendar quarter by more than [ * percent (*%)]. CTILICENSEE’s right to reduce royalty payments to DFCI under this paragraph 6.4(c)(iii) Section 7.2.6 applies only for so long as the Substantial Infringement continues.