Common use of Royalty Deductions Clause in Contracts

Royalty Deductions. Anti-stacking provisions will not apply to the calculation of royalties as noted above, unless it is necessary or useful for Novartis to acquire a royalty-bearing license from a Third Party to patented intellectual property of such Third Party, in order to use the Emisphere Technology. In such event, Novartis may deduct from the royalties payable to Emisphere pursuant to Article 6.1(f) above no more than *** of such royalties payable to such Third Party, however the royalty payable to Emisphere shall not be lower than *** of the amounts as outlined in the table in Article 6.1(f).

Royalty Deductions. Anti-stacking provisions will not apply to the calculation of royalties as noted above, unless it is necessary or useful for Novartis to acquire a *** royalty-bearing license from a Third Party to patented intellectual property of such Third Party, in order to use the Emisphere Technology. In such event, Novartis may deduct from the royalties payable to Emisphere pursuant to Article 6.1(f) above no more than *** of such royalties payable to such Third Party, however the royalty payable to Emisphere shall not be lower than *** of the amounts as outlined in the table in Article 6.1(f).