Agreement Royalty

The non-application or non-application of one element of this licensing agreement does not constitute a waiver of another aspect of the agreement. Any party may request the termination of this contract at any time during this agreement, by written notification. Development costs and risks are not taken into account. The licence rate is calculated by comparing competing or similar technologies in a sector that are modified by a reflection on the useful “residual life” of technology in this sector and by contractual elements such as exclusivity rules, exclusivity rights, usage restrictions, geographic restrictions and the associated “technological bundle” (mix of patents know-how, brand rights, etc.). Economist J. Gregory Sidak explains that comparable licenses, if selected correctly, “show what the licensee and the licensee consider to be fair compensation for the use of the patented technology,” which “most accurately represents the price a licensee would be willing to pay for this technology.” [73] The federal circuit has repeatedly confirmed that the comparable approach to the market is a reliable method of calculating a reasonable licence fee. [74] Trademark and licensing rights are often linked in many other agreements. Brands are often applied to an entire brand of product and not just to one. Since trademark law, as a consumer protection objective, is intended to achieve what it pays for, trademark licences are only effective if, in return, the company that owns the trademark also receives some assurance that the products meet their quality standards.

When trademark rights are granted with know-how, supplies, pooled advertisements, etc., the result is often a franchise relationship. Franchise relationships cannot directly assign royalties to the brand license, but may include, among other things, monthly fees and percentages of revenue. As such, it decided to enter into an agreement with HeadSoundz, a manufacturer specializing in the manufacture and sale of audio equipment. To do this, PhoneMe must grant rights to its brand, trade name and brand on HeadSoundz, so that HeadSoundz can use PhoneMe`s unique branding on headphones, packaging and marketing. Both parties enter into a licensing agreement. Both sign a licensing agreement confirming that HeadSoundz PhoneMe will pay a royalty rate of 5% of net sales on a quarterly basis, in exchange for the use of the PhoneMe brand, trade name and brand for a period of 3 years.

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