Possible deductions from future royalty payments are a concern during any lease negotiations.  I have come across two rather extensive writings (actually part 1 and part 2 of the same writing, though the two parts were not written at the same time) that I wanted to share:

Here is the link to Part 1:


And here is the link to Part 2:


The discussion is quite lengthy, legalistic, and complex.  But anyone who reads these writings should come away with a better feel for royalty deduction issues.

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