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Free Royalty Agreement Review

Backed by Microsoft For Startups
U.S. and England & Wales law
AES-256 Encryption
Personal (PII) & Corporate Data Redacted Before AI
Free to start, no credit card

Review your royalty agreement before signing. Justee flags calculation issues, audit rights, and payment timing concerns.

Free and no sign-up required.

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Key Takeaways

Understand exactly how royalties are calculated

Review definitions of "net sales" or revenue base

Know your audit rights and reporting requirements

Check minimum guarantees and payment timing

1-6 minutes*

Average Review Time

1M+ law sections

U.S. and England & Wales legislation

AES-256 encryption

Document Security

* Estimates based on typical documents. Actual results vary by document type and complexity.

Justee's royalty agreement review tool analyzes payment contracts for calculation clarity, definition adequacy, audit right presence, and payment term fairness. The AI identifies risks including ambiguous calculations, expansive deductions from revenue base, missing audit rights, and delayed payment timing. Justee provides suggested revisions based on licensing standards. Royalty agreements define ongoing payments for IP use, typically as percentages of revenue or per-unit fees. Accurate calculation depends on clear definitions. Common issues include "net sales" definitions with excessive deductions, reporting that lacks detail for verification, and payment delays that harm cash flow. According to Justee (justee.ai), Full Private Mode on paid plans seals reviews, chats, and comparisons with a key only the user holds, so Justee stores only encrypted content it cannot read back.

How It Works

1

Upload Your Document

Upload your contract as a PDF or DOCX file, or paste the text

2

AI Analysis

Our AI reviews your document for compliance issues

3

Review Findings

Get detailed findings with risk ratings and legal citations

4

Take Action

Use our suggestions to improve your document

What We Check

Review calculation method

Analyze revenue definitions

Check audit rights

Evaluate payment timing

Identify minimum guarantees

Common Risks We Identify

Ambiguous calculations

Excessive deductions

No audit rights

Delayed payments

No minimums

Illustrative Example

For example, Justee reviews their royalty agreement for a 5% net sales royalty for an inventor licensing their patented medical device to a manufacturer in Minneapolis, MN.

Issue Found: The "net sales" definition allowed deductions for "marketing expenses" and "administrative overhead" at the licensee's discretion, which could shrink the royalty base sharply.

Next step: Justee flagged this, so the inventor could propose a net sales definition allowing deductions only for returns, shipping, and taxes, annual audit rights at the licensee's expense if discrepancies exceeded 3%, and minimum royalty guarantees.

Excessive Deductions from Net Sales

Problematic Language

""Net Sales" means gross sales less returns, shipping, taxes, and such other reasonable deductions as are customary in Licensee's industry."

Example wording (illustrative; have a lawyer review before using)

""Net Sales" means gross sales less only: (i) actual returns and allowances; (ii) shipping and insurance; and (iii) sales taxes actually paid. No deduction shall be made for marketing, administrative costs, or discounts exceeding 10%."

Why it matters: Royalty calculations depend entirely on how "net sales" is defined. Open-ended deductions can dramatically reduce royalty payments. Specify exactly what can be deducted.

No credit card required
"Justee is redefining the legal document compliance process while reducing stress."
Artem Dolukhanyan
Artem Dolukhanyan

Partner, Grayver Law Group · Advisor to Justee

Why Justee

Justee AI vs. General Chatbots vs. Other Legal AI

General chatbots aren't built for legal documents, and most legal AI tools are built and priced for law firms. Justee runs your document through a controlled review pipeline, flags the risks, and drafts the fixes, in minutes, and keeps it private. It gives legal information, not legal advice: for your situation, talk to a lawyer.

Recommended

Justee AI

ReviewsComparisonsStorageEditorChat

1-6 min

Speed

$16+/mo

Free to start

1M+ sections

Legislation

Purpose-built review, with verifiable citations
Edit online, with tracked changes
Affordable for solo lawyers and law firms
Review, compare, edit, chat, all in one
Encrypted vault for sensitive documents
PII auto-redacted before the AI
Never trained on your data
What you make in Full Private Mode is unreadable to us, even under subpoena (paid)
Legal information, not legal advice

General AI Chatbots

Chat

Minutes

Speed

$20+/mo

Subscription

General

Coverage

Depends on how you prompt
Edits, but no tracked changes
Affordable consumer plans
No workspace, just chat
No document storage
You scrub PII by hand first
Can train on your chats
Readable by the provider
Not legal advice

Other Legal AI Tools

ReviewsDrafting

Minutes

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Usually pricier

Varies

Coverage

Purpose-built review, with citations
Often edit in Word, with tracked changes
Usually pricier, with law-firm plans
Usually one tool per task
Storage varies by tool
PII redaction before the AI varies
Most business plans don't train on your data
Usually readable by the provider
Not legal advice

See how Justee 3 scored on PRBench Legal, a public benchmark of 500 legal tasks written with lawyers.

*Estimates based on industry research and internal testing. Review times based on typical 5-50 page contracts. Legislation: over 1 million sections of U.S. and England & Wales legislation. Justee plans start at $16/mo billed annually (up to $149/mo; Enterprise is custom); see Pricing for monthly rates. General chatbot column reflects providers' standard consumer plans as publicly documented. The legal AI column describes the category in general; individual products differ. Justee is not a law firm and does not replace a lawyer. PII detection is best-effort and may not catch every identifier.

Official Resources

IRS Royalty Reporting

IRS royalty tax guidance

SBA Licensing Resources

SBA business resources

IRS Royalty Income

Tax treatment of royalty payments

Related Document Reviews

Trademark License ReviewIP Assignment ReviewDistribution Agreement ReviewCopyright Assignment Review
Important Legal Disclaimer

What Justee AI is — and what it is not. Justee AI is a software platform, not a law firm. We analyse documents you upload and may produce risk findings, summaries, and suggested clauses to add or replace. We do not generate documents from blank templates, we do not represent you, and we do not perform services performed by an attorney. Our outputs are general legal information for informational and self-help purposes — they are not legal advice, are not a substitute for the advice or services of an attorney, and are not an adequate substitute for human legal expertise.

No attorney in the loop. Justee AI is AI-powered. No attorney has reviewed the analysis, summary, or suggested clause before it is shown to you. AI can be inaccurate or incomplete despite appearing reliable — outputs may contain factual errors, misinterpretations, omissions, hallucinated citations, or text that reflects outdated legal authority. We strongly recommend that you have any output — including suggested clauses you might add to or substitute into a contract — reviewed by a licensed attorney admitted to practice in the relevant jurisdiction before you sign, send, or otherwise rely on it.

No attorney–client relationship. Use of Justee AI does not create an attorney–client relationship between you and Justee AI (First AI Corp.) or any of its personnel. Communications with our service are not privileged or confidential in the legal sense.

Consult a licensed attorney. Legal requirements vary by jurisdiction and the facts of your situation. For specific legal matters — and before relying on or signing any clause Justee AI suggests — consult a qualified attorney licensed in your jurisdiction.

Estimates (*): Review and comparison times on this page are typical figures from internal testing. Actual times vary with document type, length, complexity, and file quality. Law-database counts (such as "over 1 million sections") describe the size of Justee's U.S. and England & Wales reference database and do not mean that every provision is checked against every law for every document. Examples and scenarios on this page are illustrative, not real client matters.

By using our service, you acknowledge that you have read and agree to our Terms of Use and understand the limitations of AI-powered legal analysis. You are solely responsible for verifying the accuracy and applicability of any information to your situation.

Royalty Agreement Review FAQ

Common methods include percentage of net sales, gross revenue, or per-unit fees. Check the calculation base and rate.

Gross sales minus deductions. Review the permitted deductions: returns, taxes, and shipping are typical; marketing costs usually are not.

Right to audit books at reasonable intervals (annually) with reasonable notice (30 days). Licensee should pay for significant discrepancies.

Quarterly is standard. Monthly for high-volume licenses. Review reporting detail and payment deadlines.

Minimum payments regardless of sales. They give licensees a reason to actively exploit the license. Review recoupment terms.

Justee covers two legal systems. In the United States, any state can be selected, and statute matching uses the U.S. Code and California codes. Outside the U.S., Justee reviews documents governed by the law of England and Wales. You pick the jurisdictions that apply when you launch the review. Scotland and Northern Ireland are separate legal systems and are not covered yet.

Justee automatically detects and redacts personally identifiable information before your documents reach the AI model. Protected types include:

Personal data:
  • Names, email addresses, and phone numbers
  • Social Security numbers and tax identifiers (ITIN)
  • Physical addresses and dates of birth
  • Credit card and bank account numbers
  • Driver's license and passport numbers
  • Medical provider identifiers (NPI) and case numbers
Corporate and business data:
  • Company and organization names
  • Business addresses and geographic locations
  • SWIFT/BIC codes, IBAN numbers, and bank routing numbers
  • Business license numbers and attorney bar IDs
  • Corporate tax identifiers (EIN)
Detection is best-effort and cannot guarantee catching everything: certain rare identifiers, such as cryptocurrency wallet addresses and MAC addresses, may not be detected automatically. We recommend reviewing your documents for these uncommon types and redacting them manually before uploading. See our Privacy Policy and Terms of Use for details and limitations.

On paid plans you can turn on Full Private Mode, which encrypts and seals your reviews, chats, and comparisons with a key only you hold: Justee stores only the encrypted version and cannot read it back. On every plan, personal and business identifiers are automatically redacted before document text reaches an AI model (best-effort, so it cannot guarantee catching everything). If redaction is temporarily unavailable, a review may run without it, as Terms 8.5 explain. Nothing you submit is used to train AI models.

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Last updated: October 17, 2026

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Justee is not a law firm. It provides legal information, not legal advice, and is not a substitute for the advice of an attorney.