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|This valuable reference presents the "going" royalty rate for virtually any product, including over 1,500 products and services in ten lucrative categories—art, celebrity, character and entertainment, collegiate, corporate, designer, event, sports, nonprofit and music. The essential reference for both beginning and more experienced licensing professionals.|
Knowing the "going" royalty rate for virtually any product is as simple as reaching for the newly published Licensing Royalty Rates, 2022 Edition.
Setting a royalty rate too high can scare away potential licensees, while accepting a lower rate can cost licensors hundreds of thousands of dollars. Licensing Royalty Rates, 2022 Edition provides all the information you need to calculate the right rate every time.
The data in Licensing Royalty Rates is compiled using information from the U.S. Patent and Trademark Office. After careful review by a blue-ribbon panel of expert licensing consultants uniquely qualified to know what the appropriate rate range is for specific properties in each licensing category, the information is organized into four time-saving sections that give researchers fast access to comprehensive statistical and analytical data:
· Royalty rate listing alphabetically by licensed product —provides a detailed alphabetical listing of products and their suggested rate range across all product categories.
· Royalty rate listing by international trademark class—lets you quickly identify subtle royalty rate differences between similar products within specific international trademark classes.
· Checklist of licensed products and services—offers a quick-reference to products with a high potential for licensing.
· Comprehensive list of licensed products and services—presents a detailed list of all surveyed products and services within a trademark class for preparing intent-to-use trademark applications.
Written in conjunction with a field of advisors, this study represents the twenty-first in an annual series of royalty rate studies in the merchandising and trademark licensing area. While these changes are generally subtle, should you find yourself in the negotiation of a multi-year license agreement for a hot property, a half-point difference in royalty rates over a five-year period can mean millions of dollars in additional (or decreased) royalty income. Seemingly minor changes can have substantial consequences.
In addition to the table of royalty rates that we have provided in years past, the 2022 Edition has important features that should be of interest to our readers:
· A new subsection discussing common marketing funds (CMFs). CMFs are relatively common in the industry and are included in roughly fifty percent of cases.
· Updated royalty rate surveys with product categories listed alphabetically and by trademark class. Survey charts have been completely revamped to include a range of typical royalty rates for each product category, as well as the industry average royalty rate for each particular product.
· Sections 2 and 3 now include royalty rate surveys for interior design properties.
· An updated listing of the top franchises from 2021.
· Updated Section 6 detailing the state of the licensing industry, with updated survey and statistical information on worldwide licensing revenues by property type and product category, as well as the latest information on the top properties and agents in the industry.
· The 2022 survey includes property segment category for interior designers as licensor properties. This is a small but growing segment of the licensing marketplace.
· Updated listing of licensing agents and consultants actively working in the industry.
· New Appendix containing the latest reported court decisions with respect to royalty rates in all facets of the industry, including consumer products, computer technology, telecommunications, plant patents, biotechnology, video games, music, and reasonable royalty rates.
Table Of Contents
Section 1: The Role of Royalty Rates in Merchandise Licensing
§ 1.01 Introduction
§ 1.02 Common Methods of Valuing Intellectual Property for Merchandising
§ 1.03 Establishing the Royalty Rate
§ 1.04 The Compensation Provisions in the License Agreement
Section 2: Royalty Rate Survey 2020: Alphabetical Listing by Licensed Product
Section 3: Royalty Rate Survey 2020: Listing by International Trademark Class
Section 4: Royalty Rates for Toy and Game Designers and Inventors
§ 4.01 Introduction
§ 4.02 Factors Which Influence Toy Licensing Royalty Rates
§ 4.03 Video Game Licensing
§ 4.04 Royalty Rate Ranges for Toy Products
Section 5: Royalty Rates in Franchising
§ 5.01 Introduction
§ 5.02 Franchising Fundamentals and the Role of Royalty Rates
Section 6: State of the Licensing Industry
§ 6.01 Introduction
§ 6.02 Changes in the Survey Results Since 1998
Section 7: Royalty Rate Trends
§ 7.01 Royalty Rates for Patents
§ 7.02 Royalty Rates for Interactive Game Licenses
Section 8: Checklist of Licensed Products and Services
Section 9: Comprehensive List of Licensed Products and Services Section 10: Directory of Licensing Agents and Consultants Section 11: Glossary of Terms
Appendix: License Agreement Royalty Rate Cases