Common use of Stacking Protection Clause in Contracts

Stacking Protection. If Licensee becomes obligated to pay royalties to Third Parties for any patents necessary to Develop or Manufacture a particular Licensed Product, then during the period of time Licensee is so obligated, Licensee may deduct fifty percent (50%) of the documented amount of such Third Party royalties paid by Licensee solely attributable to Sales of those particular Licensed Products during a Quarter (and not attributable to any other products or processes) from the royalty amounts otherwise due to Licensor on Net Sales of those particular Licensed Products during such Quarter, provided that notwithstanding anything to the contrary herein, no deduction shall reduce the amount otherwise due to Licensor in royalties on Net Sales in any Quarter by more than fifty percent (50%) and no excess deductions may be carried forward into subsequent Quarters. ​

Stacking Protection. If Licensee becomes obligated to pay royalties to Third Parties for any patents necessary to Develop or Manufacture a particular Licensed Product, then during the period of time Licensee is so obligated, Licensee may deduct fifty percent (50%) of the documented amount of such Third Party royalties paid by Licensee solely attributable to Sales of those particular Licensed Products during a Quarter (and not attributable to any other products or processes) from the royalty amounts otherwise due to Licensor on Net Sales of those particular Licensed Products during such Quarter, provided that notwithstanding anything to the contrary herein, no deduction shall reduce the amount otherwise due to Licensor in royalties on Net Sales in any Quarter by more than fifty percent (50%) and no excess deductions may be carried forward into subsequent Quarters. ​.