Royalty-Free Units of Licensee Products Sample Clauses
The 'Royalty-Free Units of Licensee Products' clause defines which units of a licensee's products are exempt from royalty payments under the agreement. Typically, this clause specifies a certain number or category of products that the licensee can sell or distribute without owing royalties to the licensor, such as demonstration units, samples, or a set initial quantity. By clearly outlining these royalty-free allowances, the clause helps prevent disputes over payment obligations and provides the licensee with flexibility for promotional or operational purposes.
Royalty-Free Units of Licensee Products. Licensee shall have the right to manufacture and distribute up to two thousand (2,000) units in total of each Licensee Product, provided that it does not receive any revenue therefrom, for the following purposes without incurring a Royalty obligation to PSI: (a) units for internal or external testing; (b) units with limited functionality for reseller point of purchase and demonstration; (c) units provided to PalmSource; (d) units used internally by employees or contractors of Licensee; and (e) units given to press and analysts. If Licensee requires additional units for testing, PSI will consider adjustments on a case-by-case basis as reasonably required under the circumstances at that time. In addition, Licensee will provide PalmSource with no less than fifteen (15) royalty free units of each Licensee Product for quality assurance, development and technical support, compatibility testing, and marketing and will not incur a Royalty obligation to PSI for such units. Unless otherwise agreed in writing by PalmSource, any additional units shipped without revenue by Licensee shall be subject to Royalties as set forth in Section II(C) of Exhibit D (Licensee Products, Royalties and Fees).
Royalty-Free Units of Licensee Products. Licensee shall have the right to manufacture and distribute up to [**] units in total of each Licensee Product, provided that it does not receive any revenue therefrom, for the following purposes without incurring a Royalty obligation to PalmSource: (a) units for internal or external testing; (b) units with limited functionality for reseller point of purchase and demonstration; (c) units provided to PalmSource; (d) units used internally by employees or contractors of Licensee; and (e) units given to press and analysts. If Licensee requires additional units for testing, PalmSource will consider adjustments on a case-by-case basis as reasonably required under the circumstances at that time. In addition, Licensee will provide PalmSource with no less than [**] units of each Licensee Product for quality assurance, development and technical support, compatibility testing, and marketing and will not incur a Royalty obligation to PalmSource for such units. Unless otherwise agreed in writing by PalmSource, any additional units shipped without revenue by Licensee shall be subject to Royalties as set forth in Section II(C) of Exhibit D (Licensee Products, Royalties and Fees).