FAQ  •   Login  •   Register  •   Subscribe 

Welcome to the Forum for InventorSpot.com, the most popular invention related website in the world. Read our welcome message.

Skip to content

Moderators: Scrupulous, Roger Brown, citizen


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

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

User avatar
bottleslingguy
Black Belt
 
Posts: 1753
Joined: Sun Oct 22, 2006 7:41 am
FAQ: What amount of royalty percentage should I expect if I don't have a patent? If I do have a patent?

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

User avatar
Michelle
Black Belt
 
Posts: 1529
Joined: Wed Oct 11, 2006 7:27 am
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).

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

User avatar
bottleslingguy
Black Belt
 
Posts: 1753
Joined: Sun Oct 22, 2006 7:41 am
(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?

Broker

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

User avatar
Roger Brown
Black Belt
 
Posts: 1175
Joined: Mon Oct 30, 2006 2:53 pm
Location: USA
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.
Come visit my sites at http://www.RogerBrown.net
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.