Define: Net Receipts
the amounts received by the Licensee from the grant of sub-licences under the Patents and the Know-how, less any Value Added Tax or similar tax paid in respect of those amounts;
the amounts received by the Licensee from the grant of sub-licences under the Patents and the Know-how, less any Value Added Tax or similar tax paid in respect of those amounts;.
Relevant Circumstances
- When royalties under a licence are calculated on revenue net of VAT and similar taxes
- If sub-licence income must flow through to the patent owner
- Where audit rights apply to confirm the net receipts calculation