http://inventblog.com/inventors/what-is-a-reasonable-royalty-rate.html Wed, 17 Mar 2010 02:09:35 +0000 http://wordpress.org/?v=abc hourly 1 http://inventblog.com/inventors/what-is-a-reasonable-royalty-rate.html/comment-page-1#comment-2356 Michael Croix Sun, 30 Sep 2007 16:29:32 +0000 http://inventblog.com/2007/09/what-is-a-reasonable-royalty-rate.html#comment-2356 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 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.

]]> http://inventblog.com/inventors/what-is-a-reasonable-royalty-rate.html/comment-page-1#comment-2325 Roger Brown Fri, 21 Sep 2007 03:00:57 +0000 http://inventblog.com/2007/09/what-is-a-reasonable-royalty-rate.html#comment-2325 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 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.

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