A royalty rate on total net sales of licensed products or a minimum royalty cost
(whichever is greater) is payable at the end of each royalty period, except for the selloff period where the minimum royalty cost is not applicable. The licence agreement will set out the start and end dates for each royalty period and
when the statement of sales for each period is due. There will be a royalty period for
each year of the licence. There will also be a sell-off period at the end of the licence to
allow for the licensee to sell off or destroy any remaining MOD branded products. A statement of sales for each royalty period including the sell-off period is required to
be submitted to DIPR in the format provided in the licence. The statement of sales will
set out the licensed products sold during each royalty period. No reminder will be sent when a statement of sales is due or has not been received. It
is the licensee’s responsibility to ensure that all statements of sales are submitted on
time. A late fee will be incurred on late submission of statement of sales.