Royalty Share Agreement Template for England and Wales

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Key Requirements PROMPT example:

Royalty Share Agreement

"I need a Royalty Share Agreement for a new mobile gaming app, where the developer gets 70% of revenue and my company gets 30%, with quarterly payments and the right to audit revenues once per year."

Document background
A Royalty Share Agreement is essential when multiple parties have rights to revenue generated from intellectual property. This agreement, governed by English and Welsh law, sets out the precise mechanism for calculating and distributing royalties, ensuring transparency and fairness in revenue sharing. It's commonly used in creative industries, technology licensing, and manufacturing sectors where intellectual property generates ongoing revenue streams. The agreement includes detailed provisions for payment terms, reporting requirements, audit rights, and dispute resolution mechanisms.
Suggested Sections

1. Parties: Identifies and defines the contracting parties

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Calculation of Royalties: Details how royalties are calculated and what revenue is included

5. Payment Terms: Specifies payment frequency, method, and currency

6. Reporting Requirements: Outlines reporting obligations and timeframes

7. Term and Termination: Details duration and termination provisions

Optional Sections

1. Minimum Guarantees: Used when minimum royalty payments are required, typically for established IP or when licensee requires security

2. International Rights: Addresses cross-border royalty arrangements, used when agreement involves multiple jurisdictions

3. Audit Rights: Provides for financial auditing provisions, recommended for higher-value agreements or complex revenue calculations

Suggested Schedules

1. Schedule 1: Royalty Rates: Detailed breakdown of applicable royalty rates

2. Schedule 2: Licensed Property: Description of intellectual property covered by agreement

3. Schedule 3: Reporting Template: Standard format for royalty reports

4. Schedule 4: Territory: Definition of geographical scope if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contracts Rights of Third Parties Act 1999: Key legislation governing third-party rights in contracts, particularly relevant for rights assignments and third-party beneficiaries in royalty agreements

Copyright, Designs and Patents Act 1988: Primary legislation for intellectual property rights, covering copyright protection, licensing provisions, and assignment of rights that form the basis of royalty calculations

Competition Act 1998: Ensures the royalty agreement complies with competition law and doesn't contain anti-competitive provisions

Consumer Rights Act 2015: Relevant if any party to the royalty agreement could be classified as a consumer, providing additional protections

Income Tax Act 2007: Governs the tax treatment of royalty payments for individuals, including potential withholding tax obligations

Corporation Tax Act 2009: Regulates the tax treatment of royalty payments for corporate entities and related tax considerations

EU Retained Law: Post-Brexit legislation incorporating relevant EU laws into UK domestic law that may affect royalty arrangements

International Copyright Conventions: Various international treaties and conventions protecting copyright across borders, relevant for international royalty agreements

Double Taxation Treaties: International agreements preventing double taxation on royalty payments between different jurisdictions

Common Law Contract Principles: Fundamental legal principles governing contract formation, consideration, interpretation, and remedies for breach in English law

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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