A court may identify the commercial purpose of a contract from its text (including recitals and appendices) and use that purpose to resolve ambiguity in operative clauses, but this does not permit departure from the natural meaning of the text. Where a contract provides for a sequenced milestone-based process, individual clauses within that sequence will not be read as creating free-standing entitlements independent of the overall process. Advance prepayments between related companies that do not derive from actual use of licensed technology are not 'royalties' calculated in respect of 'ongoing use and production'.
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