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required, for all Sea Bulk liners sold within the ocean container
industry, that Powertex pay Sea-Land a royalty of 10 percent of net
sales of Sea Bulk liners, and expend a minimum of 10 percent of net
sales of Sea Bulk liners for the purpose of marketing, advertising,
and promotion of Sea Bulk liners. For Sea Bulk liners sold outside
the ocean container industry, Powertex was required to pay Sea-Land
a royalty of $10 for every Sea Bulk liner sold, and to expend $10
for each unit sold for the purpose of research and development of
markets outside of the ocean container industry. The Sea-Land
license agreement was amended on January 17, 1985, to provide that
Powertex would pay royalties quarterly at the rate of 10 percent for
the first 5,000 Sea Bulk liners sold, 7 � percent for the next
2,500, and 5 percent for all units over 7,500. On February 21,
1986, the agreement was again amended, this time to provide that
Powertex would pay royalties quarterly at the rate of 5 percent of
net sales of Sea Bulk liners.
On May 26, 1983, Powertex entered into a sublicense agreement
with Insta-Bulk for use of the Sea Bulk patents. The agreement
allowed Insta-Bulk to manufacture, market, and sell liners covered
by the Sea Bulk patents in Louisiana and Texas. The agreement
provided that Insta-Bulk would pay royalties to Powertex at the rate
of 18 percent of net sales of Sea Bulk liners for use in the ocean
container industry for the first year, and at the rate of 20 percent
of net sales thereafter. For liners sold for use outside of the
ocean container industry, Insta-Bulk was required to pay Powertex
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