Introduction to royalties and licence fees
This resource outlines some of the issues that arise when negotiating an IP licence fee, and some potential solutions to those issues.
Resource \ 27 Sep 2017
Often when negotiating an IP licence, it can be difficult to know what the payments should be, or how they should be calculated. To avoid simply guessing a figure, it’s best to apply a royalty valuation methodology.
Most IP licences will state that the licensee will pay one or more of the following:
- an up-front licence fee
- ongoing lump sum licence fee payments
- rolling royalties.
This information sheet provides a brief summary of the issues that arise when negotiating royalties and licence fees, and some potential solutions to those issues.