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Post by Inventoy on Apr 25, 2008 7:48:26 GMT -5
In basic terms Royalties are an agreed percentage on sales that a company will give to the inventor. Royalties are typically between 2 and 6 percent but can be as much as 10 (although i have never witnessed this). Some companies may pay an advance, i.e £5000 one off payment and the inventor will only start to get royalties after £5000 worth of the goods have sold. Advances are sometime a good sign as this will mean the toy company is relatively confident of sales of the toy.
Inventoy.
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Post by Jeremy on Dec 28, 2016 11:49:35 GMT -5
In my experience so far, most of the license agreements with inventors I have seen include a royalty rate of 5% (rarely at 6%). However, this rate usually downs to 3% if the item/product uses a 3rd party intellectual property (licensed brand).
Also it is quite common to see in the agreement an advance/minimum guaranntee that is paid to inventors and which is recoupable against royalties.
Jeremy
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Post by rogerbrown on Aug 3, 2018 5:00:34 GMT -5
And most royalties are paid on a quarterly basis and happen within 30 days after the end of that quarter.
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