BC software developers, prepare a Royalty Agreement for Software Licensing with this template form for British Columbia.
- The agreement is between the developer and a client who has hired the developer to develop software for a particular purpose.
- The parties agree to work together to initiate marketing opportunities for the software to third parties.
- The developer will pay a royalty to the company for each software license it grants to an end user.
- Royalties will be calculated and paid annually based on end-user license fees paid during the preceding calendar year.
- Both parties will use best efforts to promote and market the software to potential end users.
- The terms of the Agreement are governed by Canadian law.
This British Columbia Royalty Agreement for Software Licensing is available in MS Word format.
ROYALTY AGREEMENT THIS AGREEMENT made effective as of the _____ day of ______________, _______. BETWEEN: [DEVELOPER] [address] (the “Developer”) OF THE FIRST PART - and - [COMPANY] [address] (the “Company”) OF THE SECOND PART WHEREAS: A. The Company is in the business of [description of company’s business] (the “Business”); B. The Developer is developing application software for the Company (the “Software”) containing feature functionality pertaining to the Business for the specific use of [specific use of software] in accordance with the terms of a Software Development Agreement dated [date of development agreement] which software is based on the Developer’s current proprietary application software technology and which, when developed, will be designated with the trade name “[trade name]“; C. The Software being developed for the Company may be marketable to third parties who are also engaged in the Business; D. The parties hereto are desirous of initiating and acting upon opportunities for marketing of the Software to third parties; E. The Developer is willing to pay to the Company a royalty based on the software license fees paid by third parties for use of the Software on the terms and conditions hereinafter set forth. NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises, covenants and agreements of the parties set out in this Agreement, the parties do hereby covenant and agree as follows. 1. Royalty Grant 1.01 Subject to the terms and conditions set out in this Agreement, the Developer shall pay to the Company a royalty of [royalty] ( %) per cent of the gross proceeds received by the -2- Developer as license fees in respect of the modules of the Software set forth in Schedule “A” attached when, in future, their use is licensed by the Developer to third parties engaged in the Business (“End-Users”). 1.02 Royalty payments will be due and payable to the Company annually, calculated upon End-User license fees actually received by the Developer during the preceding calendar year pursuant to software license agreements executed by End-Users respecting use of the modules of the Software set forth in Schedule “A”. 1.03 Once the Developer has made royalty payments to the Company in a cumulative amount equal to costs incurred by the Company for specification/design, programming and testing necessary for the development of the modules of the Software set forth in Schedule “A”, this Agreement shall terminate and the Developer will have no further payment obligations to the Company for future licensing of the Software to End-Users. 1.04 The Developer shall maintain a complete and accurate list of End-Users which will be submitted to the Company within thirty (30) days of the end of each
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