Common use of Running Royalty Clause in Contracts

Running Royalty. Beginning with the First Commercial Sale by ALS, any Affiliates or sublicensees of ALS, ALS shall pay to Abbott, on a country-by-country basis, a royalty of (i) nineteen percent (19%) on Net Sales, with respect to which, but for the license granted hereunder, the manufacture, use or sale of Product would infringe a Valid Claim in such country. and (ii) nine and one-half percent (9.5%) on Net Sales for all other countries; provided, however, that ALS shall not be obligated to pay any royalties for countries in which all Valid Claims have expired; and provided further, however, that (A) ALS shall only be obligated to make payments under this Section 6.2(a)(ii), on a country-by-country basis for a period of seven (7) years from the date of the First Commercial Sale in each such country and (B) ALS shall not be obligated to pay the nine and one-half percent (9.5%) royalty established in Section 6.2 (a)(ii) in a given country in the event that all Covering Claims are deemed invalid by the judicial authority in such country effective as of the date that the last Covering Claim is finally deemed invalid. For purposes of this Section 6.2(a), the term "Covering Claim" shall mean a claim contained in any of the Patents that would be infringed but for the Exclusive License granted hereunder.

Running Royalty. Beginning with the First Commercial Sale by ALS, any Affiliates or sublicensees of ALS, ALS shall pay to Abbott, on a country-by-country basis, a royalty of (i) nineteen percent (19%) on Net Sales, with respect to which, but for the license granted hereunder, the manufacture, use or sale of Product would infringe a Valid Claim in such country. and (ii) nine and one-half percent (9.5%) on Net Sales for all other countries; provided, however, that ALS shall not be obligated to pay any royalties for countries in which all Valid Claims have expired; and provided further, however, that (A) ALS shall only be obligated to make payments under this Section 6.2(a)(ii), on a country-by-country basis for a period of seven (7) years from the date of the First Commercial Sale in each such country and (B) ALS shall not be obligated to pay the nine and one-half percent (9.5%) royalty established in Section 6.2 (a)(ii) in a given country in the event that all Covering Claims are deemed invalid by the judicial authority in such country effective as of the date that the last Covering Claim is finally deemed invalid. For purposes of this Section 6.2(a), the term "“Covering Claim" ” shall mean a claim contained in any of the Patents that would be infringed but for the Exclusive License granted hereunder.