Patented Fitness Equipment (Royalties)

Lawyers specializing in fitness law state that exercise equipment is one of the most litigious fields for patent infringements. Royalties for the use of patented fitness technology should flow back to the owner of the patent.

Royalty management can be a significant challenge for small and medium (“SME”) entities. The legal documents that articulate the complex partnership between patent owners and equipment users/manufacturers must be well-defined. The relationship between intellectual property rights holders and supply chain partners has to be precise by making sure that royalties are managed in time and that all legal facets are delineated in the contract.

NFTs have smart contract functionality, which facilitates an automated royalty management system. The caveats and conditions are set from the beginning and coded into the contract so that subsequent sales are automatically remitted to the creator’s wallet using a predefined royalty percentage. This removes the manual calculation and remittance of payments and reduces the risk of inaccuracies or human error. The initial setup may take slightly longer to embed, but once done, it should reduce the overall time taken to execute the royalty payment process.