I have licensed several inventions to toy, tool, kitchen products and eyewear companies. The normal royalty is 3% to 5%. You may find higher, but that is the average rate.
I would say 2%-10%. A higher volume, low-cost item would warrant a smaller royalty and vice versa. Don’t get stuck into fixed-royalty thinking either. You might want to structure the deal where your royalty percentage DECREASES with sales volume to give your licensee incentive to sell more. Alternatively, you might give them a break on royalty percentages upfront to stimulate sales.
I have licensed several inventions to toy, tool, kitchen products and eyewear companies. The normal royalty is 3% to 5%. You may find higher, but that is the average rate.
I would say 2%-10%. A higher volume, low-cost item would warrant a smaller royalty and vice versa. Don’t get stuck into fixed-royalty thinking either. You might want to structure the deal where your royalty percentage DECREASES with sales volume to give your licensee incentive to sell more. Alternatively, you might give them a break on royalty percentages upfront to stimulate sales.