Author Archive: Russell L Parr
Royalty Rate Guidance for Licensing Technology
When your client asks you about royalty rates for licensing their technology you need guidance and we have it. 5% of net sales may be the most commonly negotiated royalty rate but its not always the correct answer. Consider that:…
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IP is the Foundation of Value Around the World
The United States Patent and Trademark Office conducted a study to estimate the impact of intellectual property on the economy. It identified IP-intensive companies as those using significant amounts of patents, trademarks and copyrights. The report concluded that IP-intensive industries…
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Eroding Patent Rights Put U.S. Economic Vitality at Risk
What makes capitalism a roaring success in western nations? Why can’t developing nations be successful? Why do former communist countries struggle? A popular answer is to focus on cultural differences. However, Hernando de Soto, in The Mystery of Capitalism, explains…
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Henry Ford Killed the First Patent Troll
Arguably, one of the first patent trolls was George B. Selden. In 1878, Selden designed a one-cylinder gasoline powered engine, which featured an enclosed crankshaft. The next year, he filed for a patent not only for the engine but also…
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How Big is Licensing?
To get an idea of the size of the business of licensing, look at statistics gathered by the Internal Revenue Service (IRS). While this data cannot completely capture the entire picture, it can provide a reasonable approximation. The IRS has…
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Per Unit Royalties are Rare for Good Reason
In essence, royalties are a sharing of the economic benefits derived from the licensed property between the licensor and licensee. Paramount is the relative contributions of the licensee and licensor for commercial deployment of the licensed property. When a licensee…
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5% is the Most Common Royalty Rate
Royalty Rates for Technology – 7th Edition This seventh edition of Royalty Rates for Technology contains more information about technology pricing than any other publication. This book represents over a two decades of research. Included in this new book is…
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