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Definition[]

An advance payment is an up-front payment for the development of or the right to publish/distribute a work (e.g., software, multimedia work, website). An advance payment is generally recoupable, meaning that it is recovered from payments otherwise due.

Sample contract clause[]

[Commissioning Party] agrees to pay to Developer such advances against subsequently negotiated royalties as are specified in the Delivery Schedule attached as Appendix A within ten (10) business days of written approval of each Deliverable Item. Such advances shall be non-refundable, except as otherwise provided herein. No royalties will be paid to Developer under this or any other agreement between [Commissioning Party] and Developer with respect to the Product Design or the product based thereon until such royalties exceed the aggregate amount of the advances paid to Developer pursuant to all such agreements.