Example of the Application of Fees, Charges and Royalties.
from: http://www.hydro.gov.au/hydro-data/licensing.htm#12

“We have some fixed fees, some charges to cover our costs in preparing the material for supply and we also charge royalties when our material is reproduced. Our licenses give us the right to revise our charges and fees from time to time.

In some cases we will charge a Licence establishment fee which is to pay for our administration costs in processing your application and your licence. The price you pay to obtain access to our material and for updates depends upon the type of material you wish to access. This could be from our survey records, our paper charts or from our digital data files.

If you sell or distribute derived products or any other outcome from exploiting our material, we will charge you a royalty on each derived product or outcome that you supply. This includes any charges you make for supplying updated products or material to customers. Where your derived products or services are distributed for in-house use (rather than sold to customers) royalties may still be payable.

The royalty will be a fixed percentage of the net selling price of every derived product or outcome which you sell or distribute. In certain circumstances, we may charge you a fixed amount for every copy of a derived product, instead of charging you a percentage royalty. If we decide to do this, the amount we charge will depend on the kind of product and how much of our material you have used.

We will want you to send us regular progress reports during the term of your licence including your audited sales and production figures.

Our licenses provide us with the right to levy penalty interest on amounts that are outstanding.

Waiver or Reduction of Fees

Some organisations or individuals may not have to pay all of our fees and charges. Reductions or waivers may be granted to the following kinds of applicants:

• some Commonwealth and State organisations (such as AMSA, the EPA or State mapping organisations),
• academic research,
• some educational publications (such as school text books or examination papers),
• organisations who provide significant material to us without charge.

If you think that you might qualify for a waiver please contact us. You will also need to explain your reasons in full on your application form.

Audit and Inspection

The licence conditions allow us to check that you are keeping to the terms of your licence. We may want to visit your premises at any reasonable time to inspect your operations or ask auditors to look at your records. We will normally pay our costs for these inspections. If we find significant discrepancies then we will charge you for the inspection and auditing.

Other Limitations

Your licence from us only gives you permission to exploit our material. You do not have the right to include any material in your products, services or work which, if published or reproduced, or otherwise used, would contravene the rights of other persons or be an offence under the Crimes Act 1914.

Examples of license agreement fees:

>> Establishment Fee

This fee is for our administration expenses, the preparation of a licence agreement and our legal expenses.

>> Access Fee

This one-off fee provides you with copies of our material for the purposes specified in your licence.

>> Update Fee

This fee provides you with relevant updates to our material.

>> Royalty

This is a payment on every derived product or use which you sell or distribute.