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12311. Royalty Payments- Merchandise.a. A royalty equal to eight percent (8%) of the gross revenue generated in connection with the sale of each item of merchandiseby a member school or licensed vendor at or in connection with any IHSA activity during the regular season or for any State Series Event will be due to the IHSA for any use of the Trademarks. The royalty shall be paid to the IHSA by either the hosting member school or licensed vendor, whichever party is responsible for the first sale of each finished item, andbased on the following:(i) Wholesale to Member School: Total amount charged by licensed vendor to member school for the finishedmerchandise,(ii) Licensed Vendor Retail: Total amount charged by licensed vendor to customers for the finished merchandise, or(iii) Member School Created: Total amount paid by the member school to vendor(s) for the unfinished merchandiseitem, together with any amounts paid for printing.b. Licensed vendors shall deliver a full accounting of revenues generated and make any royalty payments due to the IHSA by the earlier of: (i) 30 days after the date of the event for which the merchandise was sold or distributed, or (ii) June 30.c. Member schools shall deliver a full accounting of revenues generated and make any royalty payments to the IHSA when the school submits all financial reports for the respective State Series Event hosted, or within 30 days for regular season events.d. No royalty shall be owed: (i) for merchandise used by the host school for floor, bench and/or other officials, or (ii) for theapplication of lettering or numerals to merchandise items for all levels of competition below State Final Events.12. Royalty Payments- Other. Any proposed uses of the Trademarks not otherwise addressed herein (e.g., audio-video production, etcetera) shall be presented to the IHSA in writing and dealt with on a case-by-case basis.13. Miscellaneous.a. It shall be the responsibility of the member schools to refer third parties wishing to become licensed vendors to the IHSA for consideration.b. The IHSA shall prepare and distribute to member schools a listing of licensed vendors on a regular basis.c. The enforcement of this Policy shall be the responsibility of each member school in conjunction with the IHSA. The collection of the revenue required pursuant to this Policy shall be the responsibility of the IHSA via, as appropriate, the member school or licensed vendor. Forms for the accounting of all royalties due will be provided by the IHSA and must be used by the member school or licensed vendor. All contracts and agreements shall be for the benefit of the member school,tournament event host and IHSA, whether or not any of the foregoing is specifically named in the contract or agreement.The IHSA may enforce this Policy for itself and on behalf of any member school or tournament event host as IHSA may elect in its sole discretion.d. Selection of a member school to host a particular State Series Event shall be conditioned, in part, upon such member school’s agreement to comply with and enforce this Policy. Failure to enforce this Policy by any member school maydisqualify such member school from eligibility to host future State Series Events.e. This Policy may be revised as deemed necessary by the IHSA. Any such revisions shall be binding on all member schools upon the publication of same by the IHSA.Illustrations and Applications1) Q. What Are Royalty Fees?A. A “royalty fee” is a set amount of money paid, usually on a weekly, monthly or quarterly basis, by a user of intellectual property (e.g., trademark, copyright, patent) or some other right (e.g., franchise rights) to use rights belonging to another. In music, a royalty fee is paid by a singer to the holder of the copyright to the song. In theater, a fee is paid to a writer or playwright for the use of a play. In sports, a royalty fee is paid to a team or league by vendors who wish to use the logos and other trademarks of the team and/or league on items produced by the vendor.2) Q. If a member school and/or its boosters create apparel (or other merchandise) to be sold or given away as an item which promotes and encourages school support and/or school spirit as the school participates in a given State Series Event, must that apparel contain the IHSA logo or other protected marks?A. Yes. The IHSA name and at least one logo must be included on all items produced in connection with an IHSA State Series Event (e.g., Panther Regional Champs or Panther Football Playoffs).3) Q. If a member school and/or its boosters create apparel (or other merchandise) to be sold or given away as an item which exclusively promotes and encourages school support and/or school spirit, must that apparel contain the IHSA logo or other protected marks?A. No. Use of an IHSA trademark would not be required provided the item is school related merchandise and not associated with an IHSA State Series Event (e.g,, Panther Pride or Panther Boosters).Q. Can these items be sold at an IHSA State Series Event?A. Yes.4) Tournament Managers & Miscellaneous Regarding Contractsa. The person designated as Tournament Manager by each member school for each IHSA State Series Event being hosted by the member school is the person responsible for entering into agreements regarding compliance with the IHSA Trademark Use and Royalty Policy.b. Each member school can (and should) enter into agreements with desired IHSA-licensed vendors to produce programs with ads, and/or various other merchandise items for all State Series Events hosted by the member school. Such agreements become a contractual business arrangement between the licensed vendor and the host school separate from what is provided for in the IHSA Trademark Use and Royalty Policy. Any agreements for the production of items for an IHSA State Series Event, or otherwise using the IHSA name or trademarks, shall necessarily incorporate the terms and conditions of the IHSA Trademark Use and Royalty Policy by reference. Such agreements shall also only be entered into with IHSA-licensed vendors. Please note, however, that IHSA-licensed vendors are prohibited from producing or distributing any printed publications, event merchandise, audio-visual productions or otherwise related to any State Final Events UNLESS specifically designed by the IHSA.