Down payment is an English term for pre-payment or pre-payment. It is used in connection with patent licence contracts for often milestone-dependent pre-payments from the title of the license agreement.

With license agreement a patentee gives the right of the use at his invention to a licensee against payment. Frequently the licensee takes over the development of a marketable product. The licenser receives in response portions of the conversion or profit with the product after introduction on the market. Down Payments are agreed upon with longer development time dependent on the development stage.

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