Q: Can someone seek revenue share for sales of products for which they never signed an agreement?

Signed deal for 1 product and now asking for revenue share from everything else that was developed later on but no agreement / amendment was signed?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: In general, a person or company cannot claim revenue share for products they did not have a signed agreement for. If they only signed an agreement related to one specific product, that would typically not entitle them to revenue from other products developed later unless those subsequent products were explicitly covered in the original contract or an additional agreement was signed.

A few key points:

1. Contracts govern the specific terms, including revenue sharing, between parties. A contract for one product does not automatically apply to other products.

2. If the later products were completely separate developments and not anticipated or mentioned in the original single-product agreement, the other party would likely have no legal claim to their revenue.

3. However, if the subsequent products were derivatives or extensions of the original product, and the initial contract had language encompassing such future developments, there could potentially be a case for sharing their revenue under the original agreement. The specific wording of the contract matters immensely.

4. Absent a new amended agreement or separate contract explicitly granting revenue share of the additional products, the default assumption would be that the party is not owed money for items beyond the scope of the original single-product deal they signed.

5. If there is ambiguity or disagreement, the parties may need to consult with their respective legal counsel to review the contracts and potentially negotiate a resolution or, in extreme cases, settle the matter through arbitration or court proceedings.

In summary, while the details depend on the precise language of the executed agreement, in most cases a party cannot successfully demand revenue sharing for products that were not included in the contracts they actually signed. A deal covering one product does not inherently apply to other products developed later.

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