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Generally, being mandated by the licensors to negotiate and enter into
agreement with prospective technology adopter-licensees, the servicing of
the attendant royalty also comes under the purview of the firm. So the
firms also undertakes the servicing of the royalty.
IP-Licence Royalty
The payment of royalty for a
technology license is advisedly made into an International private bank with
Global presence. Licensee routinely opens and maintains an account in a branch
of the bank network closest to the licensee. In the account, a licensee
maintains a minimum reserve equal to the next payment as determined from estimate of the last payment subject to adjustment in the next payment.
Quarterly, the brokerage formally
invoices the licensee of the royalty due, and then the funds in the licensee
account is automatically debited for the same amount. The royalty then flows
into the central account from which the firm makes disbursements to the
developer-licensors for whom royalty have been collected.
Royalty Disbursement
The brokerage routinely opens an account for each licensee in a
branch of the bank nearest to the licensee. payments are therefore made by
automatic deposit into the account on a quarterly basis as royalty become
due to the licensors.
Of course, the
opening and maintenance of a minimum amount in the account to main the
account is enable with a deduction off of the initial licensing fees of the
minimum required deposit.
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