Royalty Step-Down Provision Sample Clauses

Royalty Step-Down Provision. (a) Notwithstanding Section 5.5.1, on a Product-by-Product, region-by-region and Calendar Quarter-by-Calendar Quarter basis, Innovent shall have the right to reduce applicable royalty payments as follows: (b) If there is a commercial sale of Generic Equivalents of such Product by a Third Party or Third Parties in such region prior to the end of the Royalty Term in that region and to the extent such Generic Equivalent is not in infringement of any of AnHeart Technology, Net Sales of the corresponding Product subsequently decrease for [**Redacted**] consecutive Calendar Quarters by more than [**Redacted**] from the level of Net Sales achieved prior to the Generic Equivalents entry in that region, then the royalty rate owed to AnHeart shall be reduced by [**Redacted**] in that region. If subsequent to such Generic Equivalents entry the Net Sales of the Product decrease by more than [**Redacted**] for [**Redacted**] consecutive Calendar Quarters from the level of Net Sales achieved prior to the Generic Equivalents entry in that region, and such decrease is related to the Generic Equivalents entry in that region, then the royalty rate owed to AnHeart shall be reduced by [**Redacted**] in that region. A “Generic Equivalent” of a Product means, with reference to a Product, any biologic or pharmaceutical product that is sold by a Third Party (other than a licensee of Innovent or any of its Affiliates) and that is approved for marketing or sale by a Regulatory Authority in reliance on or using data from the Regulatory Filings for the Product that were submitted by AnHeart, its Affiliates, and that (A) contains the Licensed Compound and (B) is a “therapeutically equivalent”, “biosimilar”, “comparable”, or “interchangeable” product or meets such equivalent determination by the applicable Regulatory Authorities.