Royalties Advanced Minimum Royalties Sample Clauses

The 'Royalties; Advanced Minimum Royalties' clause establishes the obligation for a licensee to pay the licensor ongoing royalties based on sales or usage of licensed intellectual property, as well as a predetermined minimum royalty amount in advance. Typically, this clause requires the licensee to make periodic royalty payments calculated as a percentage of revenue or a fixed amount per unit, and to pay a minimum sum regardless of actual sales, often at the start of each period. Its core function is to ensure the licensor receives a guaranteed baseline income from the license, even if sales are lower than expected, thereby allocating financial risk and incentivizing the licensee to actively commercialize the licensed property.