20 Sublicense Rights Exclusive licenses often provide the licensee with the right to sublicense, or authorize others, to make, use and sell INL’s technology to facilitate widespread use. Revenues received by the licensee from sublicenses are shared with INL. Minimum Royalties Minimum royalty payments are established to encourage diligence in sales of products or services requiring the use of the technology. Without minimum royalties and additional bench- marks and milestones within the agreement, the licensee may not be as thorough in its commercialization efforts as intended when the license was granted. Patent Reimbursement Recovery of the costs incurred for protecting the technology in the U.S. and other countries is part of the license. Performance (Diligence) Milestones Technologies often require a significant period of time and effort in product development before they are ready for the market. During the development phase, licensees are required to provide periodic reports and meet specific milestones in order to retain a license, especially under an exclusive license. Licensing Income Revenue Sharing When an invention, software or other IP is successfully licensed, or commercialized, the net revenues are shared with the inven- tors. INL inventors receive 30 percent of revenue after deducting expenses (such as costs for protecting the IP). The remaining portion funds additional inventor rewards, other technology transfer activities such as the Innovation Development Fund (IDF) for technology maturation and the Science and Tech- nology Strategic Investments Fund for lab capability develop- ment. INL’s income sharing program is detailed in POL-22231 and LWP-22231. License rights defined: Exclusive: grants a licensee exclusive rights to manufacture, sell and use a patented invention, subject to certain terms.A patent license agreement will also define the amount of royalties the licensee owes the licensor. Nonexclusive: grants the licensee the right to use the intellectual property, but means that the licensor remains free to exploit the same intellectual property and to allow any number of other licensees to license the same intellectual property. Field of use (application): a license with a provision that limits the scope of application.The licensee could use the patented invention in some, but not all, of the possible fields of use. For instance, a licensee may obtain rights to make, use or sell products based on the licensed patent in nuclear reactor applications, and another licensee may obtain those same rights in the oil and gas field of use. Territory (or geography):The terms of a licensee agreement can limit the licensee to selling or distributing the products based on the patent to a specific geographical region. Defining royalty: a payment made by the licensee to the patent owner for the right to ongoing use of that asset Additional Inventor Rewards, S&T Fund, Innovation Development Fund Inventor(s) and/or Authors(s) 70% 30%