QLD Royalties still due if not using the IP

[legalnumpty]

A contract states royalties are to be paid by a Licensee for the use of specific IP. Early in the term of the contract the Licensee ceases to use the IP. Can the Licensor defend asking for the contracted royalties?

 

[Tim W]

Ceases to?
So they did, for a while, and then stopped?

 

[legalnumpty]

A contract states royalties are to be paid by a Licensee for the use of specific IP. Early in the term of the contract the Licensee ceases to use the IP. Can the Licensor defend asking for the contracted royalties?

Yes. The IP was used, but became redundant and hence is no longer used.

 

[Tim W]

What kind of IP?

 

[legalnumpty]

Yes. The IP was used, but became redundant and hence is no longer used.

Software code copyright and a trademark.

 

[Tim W]

OK.
In IP language, the software is a literary work.
So the deal is whatever the deal was.
Including whatever the dollar amount was.

The trademark... that's a bit more complex.

Much depends on the terms of the deal.

I suggest a visit to a consultation with a specialist IP lawyer for case (and deal) specific advice.
I know just the guy you need (it's not me), if you care to contact me by DM.

 

[legalnumpty]

Software code copyright and a trademark.

The software is the principal IP. So even if its filly handed back the licensor is legal entitled to the royalties?

 

[Tim W]

I'd need to see the deal to be able to say for sure