FAQ: How do royalties work and what can I expect?

[bottleslingguy]

FAQ: How do royalties work and what can I expect?

by bottleslingguy » Fri Sep 28, 2007 1:53 pm

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FAQ: What amount of royalty percentage should I expect if I don't have a patent? If I do have a patent?

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[Michelle]

by Michelle » Fri Sep 28, 2007 3:46 pm

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My understanding is that that typically, royalties range from 1% to 15% for a partner to sell your invention, depending on level of protection, how amazing the idea is and how well developed it is, etc.

I think it's typical to see about 3% to 5% to the inventor all in (including whatever the inventor may have split with the folks who helped him get the contract).

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[bottleslingguy]

by bottleslingguy » Fri Sep 28, 2007 7:46 pm

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(am I allowed to ask sub-questions? if so...)

So, if I make an agreement with a licensing broker and they broker a deal with a company for me; I could be making five percent of the five percent royalty they brokered with the company?

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[Roger Brown]

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by Roger Brown » Fri Sep 28, 2007 9:07 pm

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The standard royalty is 3% to 5% whether you have a patent or not. If you use a broker and they get you a 5% royalty deal you would split that 5% with the broker. Most brokers ask for 40% to 60% of what they get you.

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