Royalties are monetary sums paid to you as the licensor by a third party in exchange for the use of your IP.
Royalties allow creators, innovators and other intellectual property owners to financially gain from their IP assets.
How much is paid is between the licensee and the licensor, along with other terms and conditions for use is dependent on what the licensee and the licensor have negotiated. Royalties are often paid for the use of music, imagery, literature, film and more.
While some royalties can be paid as a fixed fee, they are more often calculated as percentages of revenues or sales of a protected product.
The licensee typically agrees to pay a set percentage of either the gross or net revenue, or profit they earn as a result of using another’s IP. Alternatively they may agree to pay a set amount for each licensed product sold.
The exact percentage will be something that is determined through negotiation taking into account the value of the IP in question. The more exclusive the licence and unique the IP - the better royalty percentages that can be demanded.
Licensing your IP and receiving royalties does not indicate a transfer of ownership or loss of control over your IP.
However, to ensure you are receiving a fair sum and your rights are not being compromised, it is vital to have a legally binding royalty agreement prepared by a qualified IP solicitor or attorney.
This agreement needs to be fair for both you and the licensee and make allowances for changes in the value of the IP over time.
An IP attorney can draft this agreement for you in careful consideration of all these factors.
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I have dealt with Barry over the years, his advice and experience has helped me greatly. Looking for to working with him and his team again. Maher.
IP Guardian helps protect words, symbols, letters, numbers, names, signatures, phrases, sounds, shapes and smells. Yes, I said smells.
We've had the pleasure to work closely with Barry for many years. He has been exceptional to deal with and has a keen focus in providing a commercial led IP "go to market" strategy for start-ups and well known brands. Makes it easy and always advises on different ways to navigate through the IP process.
Barry Meskin @ IP Guardian is an experienced and extremely knowledgeable expert in the domain of intellectual property, patents and trademarks. In addition he has been extremely responsive and very professional in all our dealings. I wholeheartedly recommend Barry's services to any business or anyone seeking advice in this area - great quality and great value.
