Profit Sharing Income

Profit Sharing Income. Means amounts received by Licensee from any Sublicensee under an arrangement, including but not limited to a joint development and commercialization agreement, which requires the Licensee to fund a share of the research, development and/or commercialization costs of the Licensed Product and/or Licensed Service undertaken by the Sublicensee in return for a share of net profits (as specifically defined in such agreement) from such Sublicensee specifically resulting from any actual Sale of any... Licensed Product and/or Licensed Service by such Sublicensee. Such Profit Sharing Income amounts must be attributable and directly proportional to the percentage of such research, development and/or commercialization funding received by a Sublicensee from Licensee and such Profit Sharing Income shall be calculated on a per royalty reporting period basis. For example, if the Licensee invests fifty percent (50%) of the costs towards research, development and/or commercialization of a Licensed Product by a Sublicensee, then Profit Sharing Income received by Licensee under such an agreement shall not exceed fifty percent (50%) of net profits of the Sublicensee for such Licensed Product. For the avoidance of doubt, any Sales of Licensed Products and/or Licensed Services by such Sublicensee shall be subject to the payment of an Earned Royalty under Section 8.1. For clarity, any amounts received beyond the attribution and proportionality referred to above shall be considered Sublicensing Revenue in accordance with Paragraph 1.22. View More