Research and Development. Research and development (“R&D”) costs are charged to net earnings (loss) in the periods in which they are incurred. However, costs incurred pursuant to specific contracts with third parties for which Nortel is obligated to deliver a product are charged to cost of revenues in the same period as the related revenue is recognized. Related global investment tax credits are deducted from the income tax provision.
Research and Development shall include, but not be limited to (i) all short term and long term basic, applied and developmental research and technical assistance and specialized research support of customers or active prospects, targeted national accounts, of Verso Paper operating divisions; (ii) information relating to manufacturing and converting processes, methods, techniques and equipment and the improvements and innovations relating to same; quality control procedures and equipment; identification, selection, generation and propagation of tree species having improved characteristics; forest resource management; innovation and improvement to manufacturing and converting processes such as shipping, pulping bleaching chemical recovery papermaking, coating and calendaring processes and in equipment for use in such processes; reduction and remediation of environmental discharges; minimization or elimination of solid and liquid waste; use and optimization of raw materials in manufacturing processes; recycling and manufacture paper products; recycling of other paper or pulp products; energy conservation; computer software and application of computer controls to manufacturing and quality control operations and to inventory control; radio frequency identification and its use in paper and packaging products; and product process improvement development or evaluation; and (iii) information about methods, techniques, products equipment, and processes which Verso Paper has learned do not work or do not provide beneficial results (“negative know-how”) as well as those which do work which provide beneficial results.
Research and Development. The Company’s research and development (“R&D”) activities historically included the development of new drug delivery technologies, the formulation of brand name proprietary products and the development of generic versions of previously approved brand name pharmaceutical products. To comply with the financial constraints imposed by the FDA in the Consent Decree, the Company reduced the scope of its R&D programs and reduced the size of its scientific affairs department, which handles R&D efforts, to 7 people. In fiscal year 2012, the Company’s total R&D expenses were $16.1 million, which was primarily spent on ongoing clinical trials required for Makena®. In the three and nine month periods ended December 31, 2012, the Company’s total R&D expenses were $1.4 million and $9.0 million, respectively.
Research and Development. Licensor shall be responsible for ongoing research, development and feature upgrades of the Software. Licensor shall perform such research and development and shall use reasonable commercial efforts to develop upgrades and new versions of the Software to seek to ensure that the Software keeps pace with technological and other advances and continues to address the needs of the market. Licensor shall also be responsible for providing fixes for bugs, cracks or other problems related to the Software as contemplated by the Support Services.
Research and Development. During the Term, Licensee shall have the exclusive right (but not the obligation) to conduct research and development activities, and pursue regulatory approval, clinical trials, and all other work necessary to develop, improve, enhance and commercialize the Licensed Products and Licensed Processes within the Field of Use in the Territory. In connection with such potential efforts by Licensee after the transition of Section 3 is complete, Licensee may consult with Licensor, and Licensor shall make appropriate personnel available for reasonable telephone and other informal consultations, but shall not, among other things, obligate Licensor personnel to travel, spend a minimum number of hours or engage technical personnel in research or clinical projects, all of which services (“Additional Services”) may be requested by Licensee and shall be subject of further negotiation by the Parties including provisions for appropriate consideration therefor at the hourly rate of US$95.00/hour and with reimbursement at cost of any direct expense incurred by Licensor at Licensee’s request. Licensee shall keep Licensor reasonably informed as to any research and development activities, regulatory approvals, clinical trials, and other work undertaken by Licensee or any other party authorized by Licensee to develop, improve and/or enhance the Licensed Products and Licensed Processes. Upon Licensor’s request, Licensee may permit Licensor to conduct research and development activities, regulatory approvals, clinical trials, and other work to develop, improve and/or enhance the Intellectual Property, Licensed Products and Licensed Processes, and Licensor shall keep Licensee reasonably informed as to any of such activities. Subject to Section 10(a), in the event that either Licensee or Licensor, or the two of them jointly, or any other party, improves or enhances the Licensed Products and/or Licensed Processes in any way, such improvements and enhancements shall be deemed to be part of the Intellectual Property that is licensed to Licensee hereunder, and Licensee shall have the right to utilize, market, sell and otherwise benefit from such improvements and enhancements on the terms set forth herein as if such improvements and enhancements were part of the Intellectual Property on the Effective Date.