READI

(Rights for Electronic Access to and Delivery of Information)

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PAYMENTS

Definition

That clause which provides for the purchaser to pay the provider for services rendered.

Discussion

From the seller's viewpoint, this clause should be very straightforward. The license should state what is to be paid, how it is calculated, when (and whether an invoice will be submitted), the point at which the buyer is in default (if the bill remains unpaid) and what happens if the service is not paid. If the service is supplied by a foreign publisher, the currency in which payment is made should be stipulated. If payments are based upon usage and usage occurs locally, there may be reporting requirements which proceed billing (e.g., reports that itemize the number of copies downloaded or printed). If payments are related to measurements of use, provisions for an audit is normally included in the agreement.

Many buyers find it beneficial to define each pricing formula in a separate clause to avoid coordinating payments for all options. Buyers may also wish to insert a clause which gives them the right to withhold payment, should certain elements of service provided not be satisfactory.

Benefits

Specifying clearly what is required avoids surprises and allows for an orderly accounting and payment procedure.

Risks

If procedures are not spelled out clearly, disputes may arise over appropriateness of charges.

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Any comments, or feedback?		Last Update:   Wednesday, 03 July, 2002 - 04:22 PM - EDT