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Licenses
12 Months Ended
Dec. 31, 2012
Licenses

Note 10Licenses

In 1992, the Company obtained the worldwide license to manufacture and sell technology for a CCS product to individual automotive OEMs. Under the terms of the license agreement, royalties are payable based on cumulative net sales and do not require minimum payments.

On November 9, 2012, Gentherm entered into an agreement to accelerate the royalty obligations under the original license agreement, which would otherwise have ended May, 2014. Gentherm made the first payment of $816 within ten days following execution the agreement and a second payment of approximately $1,611 is to be made on or about May 1, 2013. As of December 31, 2012, the remaining liability is included within accrued liabilities on our consolidated balance sheet.

The Company has recorded royalty expense under this license agreement of $3,079, $1,698 and $1,631 in 2012, 2011 and 2010, respectively. These royalties are recorded as cost of sales.