Reverse Royalty Term Clause Samples

A Reverse Royalty Term clause defines the conditions under which royalty payments flow from the licensor to the licensee, rather than the traditional direction. Typically, this applies in situations where the licensee contributes improvements, technology, or intellectual property back to the licensor, and the licensor then commercializes these contributions. The clause ensures that the licensee is compensated for their contributions, thereby incentivizing innovation and clarifying the financial arrangements for both parties.