News & Analysis as of

Royalties

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

McGinnis Lochridge on

In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Vondran Legal

SESAC music licensing overview for restaurant and club owners

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Many new business owners in the restaurant, bar, nightclub, and karaoke business fail to understand that if live music is played in their establishment (called a public performance), the establishment must have the proper...more

Gray Reed

Texas Pore Space Ownership – Royalty Calculation

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In Myers-Woodward, LLC v. Underground Services Markham, LLC et al, (discussed previously) the parties disagreed on how to calculate Myers’ royalty on salt produced by Underground....more

McGinnis Lochridge

Who Owns the Empty Space? Texas Supreme Court Affirms Surface Ownership of Salt Caverns in Landmark Ruling

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In Myers-Woodward, LLC v. Underground Services Markham, LLC, No. 22-0878, 2025 WL 4356581 (Tex. May 16, 2025), the Texas Supreme Court resolved two significant issues affecting mineral owners and surface owners: (1) who owns...more

WilmerHale

FRAND Quarterly: Navigating the Global SEP Landscape - May 2025

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The beginning of 2025 saw two overarching trends in FRAND litigation...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

McGinnis Lochridge on

This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

McGinnis Lochridge on

Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

McGinnis Lochridge on

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

McGinnis Lochridge

Texas Supreme Court Rules on Modification of NPRIs

McGinnis Lochridge on

In this recent case, the Texas Supreme Court resolved whether ratification of a lease or signing of a stipulation agreement could transform a fixed non-participating royalty interest (NPRI) into a floating NPRI....more

Baker Botts L.L.P.

Seeking Royalties Beyond Patent Expiration: A Refreshed Look at Patent Misuse

Baker Botts L.L.P. on

Key Takeaway: A recent Ninth Circuit decision in C.R. Bard v. Atrium reinforces the long-standing Brulotte rule against post-expiration patent royalties but clarifies that courts should assess this strictly as a legal...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - April 2025 #4

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Jack Nicklaus just scored a $1 million win in a New York court, striking back against his former company’s attempt to control his personal brand....more

McDermott Will & Emery

Munich Court Addresses Implementer’s Obligation To Provide Security in FRAND Negotiations

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The Munich Higher Regional Court issued a decision concerning the fair, reasonable, and nondiscriminatory (FRAND) negotiation process and an implementer’s obligation to provide security if a license offer for standard...more

Baker Botts L.L.P.

Patent Apportionment: Anything You Say in a License Agreement May Be Used Against You in a Court of Law

Baker Botts L.L.P. on

Over the last several years, the Federal Circuit has increasingly scrutinized patent litigants’ reliance on “comparable licenses” as a means for calculating a reasonable royalty, including whether the license needs to be...more

Proskauer - The Patent Playbook

A Looming En Banc Decision with Potentially Damaging Consequences – EcoFactor v. Google

For anyone following the evolving admissibility standards for expert opinions relating to patent damages, the EcoFactor v. Google case is one to watch. In December 2024, the Federal Circuit granted Google’s petition for...more

Smart & Biggar

When patents expire but royalty payments don’t: contrasting U.S. and Canadian approaches to patent licensing

Smart & Biggar on

How does the expiration of the patents in one jurisdiction impact global royalty payments? This question was addressed by the United States Court of Appeal’s Ninth Circuit in C.R. Bard Inc v Atrium Medical Corporation, Case...more

Arnall Golden Gregory LLP

The Pitch - February 2025

The Pitch newsletter is a monthly update of legal issues and news affecting or related to the music, film and television, fine arts, media, professional athletics, eSports, and gaming industries. The Pitch features a diverse...more

Houston Harbaugh, P.C.

Ohio Appeals Court Rules that Horizontal Shale Well Was “On” the Leased Premises

Houston Harbaugh, P.C. on

Let’s assume you own a 175 acre farm in Washington County. Your grandfather acquired the farm back in 1948 from Farmer Brown (the “1948 Deed”). Your grandfather always said that he bought both the surface and oil and gas. In...more

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

Gray Reed on

After four stops at the lower courts, Kenneth Hahn v. ConocoPhillips has been resolved by the Supreme Court of Texas. The Court opined on the effect of two instruments often used to clarify land titles in Texas: ...more

Irwin IP LLP

Bundle to Save: Spotify Avoids Royalties to Musicians 

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Mechanical Licensing Collective v. Spotify USA Inc., Case No. 24 Civ. 3809 (S.D.N.Y. Jan. 29, 2025) - On January 29, 2025, the Southern District of New York dismissed a lawsuit filed against Spotify for allegedly failing...more

Arnall Golden Gregory LLP

Hollywood Accounting: Why Every Creator Needs an Audit Clause

The term “Hollywood accounting” describes the stigmatized financial practices employed not only by film studios but also other powerful entities that pay creators, whether they are streaming platforms, recording labels, or...more

Lerman Senter PLLC

FCC Warns that Unreported Exchange of Radio Airplay for Event Participation by Artists Violates Payola Rules

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The FCC has issued an Enforcement Advisory reminding radio broadcasters that manipulating airplay based on an artist’s willingness to participate in station promotions or events is illegal under the FCC’s payola rules unless...more

Seyfarth Shaw LLP

THREE PEAT: Why Pat Riley’s Trademark Portfolio Makes Him a Chiefs Fan for the Super Bowl

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As the Kansas City Chiefs prepare to face the Philadelphia Eagles in Super Bowl LIX, they aren’t just battling for another championship—they’re chasing history. A win would cement their place in the record books as the first...more

McDermott Will & Emery

What’s Shaking? Not an Interlocutory Appellate Decision on Damages

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The US Court of Appeals for the Fifth Circuit dismissed and remanded a district court certified interlocutory appeal concerning the standard for calculating a reasonable royalty under the Defend Trade Secrets Act (DTSA). The...more

Oliva Gibbs

Happiness is Setting Clear Boundaries — Especially in Overriding Royalty Assignments

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Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more

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