Offer: Upon approval, Idea Hunt will make an offer to purchase the idea. The offer will specify the payment terms, which include: A lump sum payment for the whole project, and A profit-sharing arrangement of approximately 10% of the product's net profits for up to 10 years.
Acceptance: Sellers must accept the offer in writing within the time frame specified by Idea Hunt. Failure to do so may result in the offer being withdrawn.
Payment Terms
Lump Sum Payment: The lump sum amount will be paid to the Seller upon acceptance of the offer and the signing of a purchase agreement. The payment method and timing will be specified in the purchase agreement.
Profit Sharing: In addition to the lump sum payment, the Seller will receive approximately 10% of the product's net profits for a period of up to 10 years from the product's commercial launch date.
Profit Calculation: "Net profits" shall be defined as gross revenue from the product minus all reasonable and customary expenses directly associated with the production, marketing, and distribution of the product.
Payment Schedule: Profit-sharing payments will be made to the Seller on a quarterly basis. Idea Hunt must provide a detailed accounting of profits with each payment.
Duration: The profit-sharing agreement will remain in effect for a period of up to 10 years from the product's commercial launch date, after which the agreement will terminate automatically.
Transfer of Rights
Ownership Transfer: Upon receipt of the lump sum payment, all rights to the idea, including intellectual property rights, will be transferred to Idea Hunt. The Seller relinquishes all claims to the idea and any future profits derived from it, except for the agreed profit share.
Licensing (if applicable): If the sale involves only partial rights, Idea Hunt may negotiate a licensing agreement with the Seller, outlining the terms under which the idea may be used by both parties.
