News & Analysis as of

Royalties Contract Terms

Baker Botts L.L.P.

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

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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

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

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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

Gray Reed

Ratifications, Stipulations, and Fixed vs. Floating Royalty Interests

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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

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

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

BakerHostetler

The Difference Between Theory and Practice: Lighting Defense Group LLC v. Shanghai Sansi Electronic Engineering Company Ltd., et...

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You can’t make applesauce out of oranges — and experts may not cook up opinions with contrary facts. In Lighting Defense, the patent damages expert opined that in a “hypothetical negotiation,” the parties would have agreed to...more

Gray Reed

“Free of Cost” Royalty Includes Post-production Costs

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Fasken Ranch Ltd et al v. Puig et al featured a reservation in the sale of a ranch of an undivided 1/16 non-participating royalty interest “free of cost forever.”  What does that mean? In particular, does it mean that the...more

Mintz - Bankruptcy & Restructuring Viewpoints

In re Weinstein and Mallinckrodt: Implications for Royalty Financings, M&A Earn-Outs, and Other Transactions Involving Future...

Deal structure matters, particularly in bankruptcy. The Third Circuit recently ruled that a creditor’s right to future royalty payments in a non-executory contract could be discharged in the counterparty-debtor’s bankruptcy....more

Lathrop GPM

Illinois Federal Court Denies Cross Motions for Summary Judgment on Breach of Contract and Guaranty Claims Due to Ambiguity in the...

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A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more

Arnall Golden Gregory LLP

The Pitch - April 2024

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

Oliva Gibbs

The Texas Division Order Statute: How It Works and Who It Serves to Protect

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A division order is a statement executed by all owners of interests in an oil and gas well.  The division order’s essential purpose is to “authorize and direct to whom and in what proportion to distribute” proceeds from the...more

Lathrop GPM

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

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An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more

Gray Reed

Federal Court Distinguishes Devon v. Sheppard

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Producers disappointed by the Supreme Court’s holding in Devon Energy Production v. Sheppard might have reason to feel vindicated. The question in HL Hawkins Jr., Inc. v. Capitan Energy Inc. et al. was whether producer...more

Houston Harbaugh, P.C.

The Strip and Gore Doctrine - Who Really Owns The Oil and Gas Under Roads and Highways?

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Let’s assume your grandfather owned 99 acres in Washington County. In 1955, he sells a small portion of the farm to the Commonwealth of Pennsylvania in order to facilitate the construction of new State Route 39. This acreage...more

BCLP

Recent decisions affecting US mineral and royalty owners

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While the unexpected and unpredictable commodity price swings over the last year have undoubtedly captured the attention of mineral and royalty owners across the United States, careful attention should also be paid to a few...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That 1924 Deed Conveyed One Half Of The Oil and Gas Estate

Houston Harbaugh, P.C. on

The calculation of production royalties and the deduction of post-production costs remains a controversial topic here in Pennsylvania. As we have written before, there is another frustrating and often confusing...more

Houston Harbaugh, P.C.

Texas Supreme Court Rules That Post-Sale Costs Must be Added Back to Gross Proceeds Calculation

Houston Harbaugh, P.C. on

Let’s assume you own 185 acres in Washington County. In 2020, you negotiate a new oil and gas lease with ABC Drilling. During the negotiations, you insist on a “gross royalty” which prohibits the deduction of post-production...more

Gray Reed

Texas Supreme Court Rules on “Bespoke” Add-Back Royalty Clause

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In Devon Energy Production Company, LP et al v. Sheppard et al, the Supreme Court of Texas construed what it referred to as a “bespoke” and “highly unique” royalty clause in several oil and gas leases to prohibit the...more

Lathrop GPM

New York Appellate Court Dismisses Royalties Claim Because of Franchisor’s Breach Under Preliminary Injunction

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A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more

Gray Reed

Texas NPRI Not Diminished by Pooling Ratification

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The takeaway from Hahn v. ConocoPhillips Company is that in Texas a NPRI holder may not diminish his rights by ratifying pooling of an oil and gas lease unless there are provisions explicitly purporting to do so....more

Holland & Knight LLP

A Closer Look at Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC

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The Supreme Court of Texas has once again tackled the heavily contested issue of postproduction costs in royalty calculations. In Nettye Engler Energy, LP, v. BlueStone Natural Resources II, LLC, No. 20-0639, the Court was...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

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A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

Alston & Bird

Is “Into the Pipeline” the Equivalent of a Wellhead Valuation? Not So Fast, Says Texas Supreme Court

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Our Oil & Gas Team parses a ruling from Texas that reminds courts to look at the entire contract, not just a favorite word or phrase. The parties disagreed about where along the pipeline royalty valuation should occur. The...more

Lathrop GPM

The Franchise Memorandum - Issue #271

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Ninth Circuit Reverses Class Action Settlement Approval and Fee Award - The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more

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