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Object documentationUnderlying Component (Granting Ref.)

 

Product relationship linking a subordinate intellectual property (IP) to a superordinate IP. The subordinate IP has a granting reference to a license acquisition contract.

 

You use this relationship to specify whether the acquisition contracts assigned to subordinate IPs in the Rights Owned (Granting Ref.) of the IP are to be evaluated when you use the superordinate IP in a contract. This allows you to do the following:

  • Document this relationship in the system

  • Evaluate the relationship in the rights availability analysis

  • Choose which license acquisition contracts (and therefore all IPs linked to a contract through the granting reference) the system includes in the royalties calculation when the rights from the acquisition contract are sold

Integration

You specify the underlying component (granting ref.) relationship in the IP. The system evaluates this relationship during the rights availability calculation.

In addition, when you create a license sales contract and you include the rights to the superordinate IP, when running the collision check, the system updates the license sales contract with any subordinate IPs that have an underlying component (granting ref.) relationship with the superordinate IP. The system then defines the same type of relationship between the IPs in the contract.

The system also creates an association with the corresponding license acquisition contract from where you obtained the rights to the subordinate IPs:

  • If there is one license acquisition contract, the system automatically assigns this contract.

  • If there are multiple license acquisition contracts, the system runs the extended collision check and prompts you to select a contract.

Example

You have negotiated two license acquisition contracts with an actor for the rights to use her services in the production of a television series. The first contract expires in one year; the second contract expires in five years. When generating the rights, you create entries of rights owned with granting reference.

You produce the television series and create a corresponding intellectual property record. You create an underlying component (granting reference) relationship between the IP representing the actor’s services (subordinate IP) with the television series IP (superordinate IP).

You then create a license sales contract to sell the broadcast rights for the television series. When you run the collision check, the system detects that the television series IP has a subordinate IP for the actors services, and that this IP has granting references to two license acquisition contracts. The system therefore prompts you to specify which contract to associate.