This report is organized into two parts. The first part covers the theory associated with deriving royalty rates. An overview of intellectual property value is provided along with seven methods that can be employed to derive royalty rates. The methods discussed are both qualitative and quantitative. Illustrative examples of each method discussed are provided.
The second part of this report presents detailed financial information about real world third-party transactions that center on the transfer of biotechnology and pharmaceutical intellectual property. The parties involved in the transactions are disclosed along with a description of the technology exchanged and all of the financial details that could be discovered. For this sixth edition we have emphasized the reporting of royalty rates and other financial compensation, associated with license agreements. We have updated and expanded information that was reported in past editions and conducted extensive research to expand the number of license agreements reported. The transaction information presented in this new edition has been collected from well-established sources believed to be reliable from September 1990 through December 2005.
Summarized below is the royalty rate data found throughout the License Agreement section of this book. Only royalty rates, presented as a percent of sales, are included in the graph below. For license agreements containing more than one rate, all rates are representing with equal weight in the graph.
