Who is responsible for paying royalties and license fees?

• A. The contractor.
• B. The owner.
• C. The architect.
• D. The subcontractor.

Answer: (A)

The main idea is who bears the cost to use patented or protected materials and methods in doing the Work. Under the A201 framework, the contractor is responsible for paying royalties and any required license fees for the use of any patented or copyrighted material or process used to carry out the Work. This places the financial risk for compliance with patent and licensing obligations on the party actually performing the construction and choosing the specific products and means of construction. For example, if a proprietary locking system or a specialized patented component is used, the contractor must secure the license and cover the royalties.

The owner isn’t typically responsible for these licensing costs because they arise from what the contractor selects and uses in constructing the project. The architect’s role relates to design and the use of drawings, not to paying ongoing royalties for construction methods or products. Subcontractors would handle their own licensed materials, but the contract overall assigns the royalties/fees responsibility to the contractor performing the work.