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By definition, royalty is paid free of the costs of exploration, drilling and production of oil and gas (the “production costs”) The prevailing party in any arbitration or litigation shall be entitled to recover all reasonable expenses thereof, including attorneys’ fees in connection with such proceedings or any appeal thereof.

Heritage resources does not suggest, much less hold, that a royalty cannot be made free of postproduction costs Rf licensing is also seen in patent pools, including pools that cover standardized technologies Heritage resources holds only that the effect of a lease is governed by a fair reading of its text.

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The examining section examines licensing documents submitted for a statutory or compulsory license to determine that they meet the requirements under the statute and copyright ofice regulations, including correct computations of the filing and royalty fees.
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