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Royalty Share Agreement

Royalty Share Agreement Template for Singapore

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Key Requirements PROMPT example:

Royalty Share Agreement

"I need a Royalty Share Agreement for licensing our software patent to a manufacturing company in Singapore, with quarterly payments of 5% of net sales and minimum annual guarantee of SGD 100,000, starting March 2025."

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Document background
A Royalty Share Agreement is essential when one party wishes to monetize their intellectual property or assets by allowing another party to use them in exchange for regular payments. Under Singapore law, this contract type provides a comprehensive framework for managing these relationships, detailing payment structures, reporting obligations, and compliance requirements. The agreement is particularly relevant in today's knowledge-based economy where intellectual property licensing is increasingly common. It ensures clear understanding between parties while providing legal protection under Singapore's well-established commercial law system.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used tHRoughout the agreement

4. Scope of Rights: Details of intellectual property or assets subject to royalties

5. Royalty Calculations: Formula and methodology for calculating royalties

6. Payment Terms: Timing, method, and currency of royalty payments

7. Reporting Requirements: Requirements for financial reporting and auditing

8. Term and Termination: Duration and conditions for ending the agreement

Optional Sections

1. Minimum Guarantees: Minimum payment obligations - include when requiring minimum performance standards

2. Territory Restrictions: Geographical limitations on rights - include when rights are territory-specific

3. Quality Control: Quality standards and monitoring - include when product quality affects brand value

4. Sub-licensing Rights: Rights to sub-license to third parties - include when sub-licensing might be desired

Suggested Schedules

1. Schedule 1: Royalty Rates: Detailed breakdown of royalty percentages

2. Schedule 2: Calculation Examples: Examples of royalty calculations

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

4. Appendix A: Licensed IP: Detailed description of intellectual property covered

5. Appendix B: Territories: List of authorized territories if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




































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Industries

Contract Law (Chapter 53): Primary legislation governing contractual relationships and obligations in Singapore, forming the fouNDAtion for the Royalty Share Agreement

Copyright Act 2021 (Act 22 of 2021): Regulates copyright protection and licensing, essential for royalty agreements involving creative works or intellectual property

Patents Act (Chapter 221): Governs patent rights and licensing arrangements for inventions and technological innovations in Singapore

Trade Marks Act (Chapter 332): Regulates trademark protection and licensing, relevant for royalty agreements involving branded products or services

Competition Act (Chapter 50B): Ensures royalty arrangements do not create anti-competitive effects in the Singapore market

Income Tax Act (Chapter 134): Governs taxation of royalty income and related withholding tax obligations

Goods and Services Tax Act (Chapter 117A): Determines GST treatment of royalty payments and related transactions

Currency Act (Chapter 69): Regulates currency matters for international royalty payments and foreign exchange considerations

Monetary Authority of Singapore Act (Chapter 186): Oversees financial regulations affecting international royalty payment arrangements

Electronic Transactions Act (Chapter 88): Governs electronic transactions and digital signatures, particularly relevant for digital content royalties

Personal Data Protection Act 2012: Ensures compliance with data protection requirements when handling personal information in royalty arrangements

Arbitration Act (Chapter 10): Provides framework for arbitration as a dispute resolution mechanism in royalty agreements

Mediation Act 2017: Establishes framework for mediation as an alternative dispute resolution method for royalty-related disputes

Supreme Court of Judicature Act: Determines court jurisdiction and enforcement of royalty agreements in Singapore's legal system

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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