Common use of Continuing Royalties Clause in Contracts

Continuing Royalties. Due on the first of June 2017, and on the corresponding day of each year thereafter until the patent expires, Licensee shall pay to Licensor a sum equal to ten percent (10%) of any sub-license fees earned on the Licensed Property in the prior twelve months. In the event that Licensee initiates a lawsuit to enforce the Licensed Property against any potential infringer, any settlement or judgment resulting from said lawsuit shall be considered a sub-license fee to which Licensor is entitled (10%) ten percent. 2.2.1. A sub-licensee shall be any entity that contracts with and pays the Licensee for the explicit right to use or be exempt from suits for using the Licensed Property. This does not include an entity contracting with the Licensee for products or services that may embody the Licensed Property.