The Alternative Rate Structure

New or Renewing Licensees that would like to utilize the Alternative Rate Structure must elect the Alternative Rate Structure at the beginning of their License Term.

Existing Licensees operating under an AAC PLA v1.5 or above that would like to utilize the Alternative Rate Structure may, subject to the terms and conditions set out in the PLA, elect to do so (without paying any administrative fee) by signing an addendum to their current agreement prior to June 1, 2017.

Existing Licensees operating under a version of the PLA prior to v1.5 that would like to utilize the Alternative Rate Structure may elect to do so (without paying any administrative fee) by transitioning to the current PLA and electing to report under the Alternative Rate Structure prior to June 1, 2017.

You would simply report the two groups of Licensed Products in separate “Product Categories.” When reporting Licensed Products sold in or sold for use in R1 countries/regions, the R1 rate table will be used. When reporting Licensed Products sold in and for use in R2 countries/regions, the R2 rate table will be used. The volume discount is calculated separately for units reported under the R1 rate table and units reported under the R2 rate table. R1 volumes and R2 volumes may not be aggregated for purposes of determining the applicable rate.

Yes. If a licensee is in good standing (i.e., reports and payments are accurate and up-to-date) then the licensee may switch from reporting under the Alternative Rate Structure to reporting under the Standard Rate Structure. There is a $15K administrative fee for switching.

No. The Alternative Rate Structure applies only subsequent to formal election by the licensee.