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Royalty rate

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Definition Edit

A royalty rate is "a rate of payment to be made to someone in exchange for certain rights granted by that person."

A royalty rate is

[p]ercentage applied to the price of a product (or alternative royalty base) to determine the amount of the royalty.[1]

Overview Edit

A royalty rate can be a fixed amount per transaction, a fixed amount per time period, or a percentage of sales, revenues, or other amount related to the exploitation of the rights granted.

References Edit

  1. Licensing Terms of Standard Essential Patents: A Comprehensive Analysis of Cases, at 8.

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