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To: UnBlinkingEye
I know this won't be the answer you won't, but there really aren't any norms. Royalty rates can vary from less than 1% to 10% (rare), depending on how badly the licensee wants the technology, how strong a component of the finished technology the licensed technology will be, etc., etc. With all that said, the closest thing I could offer you to a norm would be to say that 3-5% is generally typical.

Primary consumer electronics have notoriously low profit margins, i.e. spreads between manufactured cost and the sales price. By primary, I mean DVD players, digital cameras, etc., the actual core item. A tighter spread between manufactured cost and price point could be seen as good for the licensor (you), but this fact could also be reasonably used by the licensee to argue for a lower royalty rate. By contrast, accessory technologies—think printer cables, some forms of media, various add-ons—are often very high profit margin items. In any royalty negotiation, don't lose sight of the forest. A penny for a high-volume item can add up to a lot of money.

There are so many aspects to this game that must be considered. If you get close and need detailed help, I do consulting on this stuff and would work cheaper for a Freeper.

Best o'luck...

MM

10 posted on 05/14/2002 10:40:42 AM PDT by MississippiMan
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To: MississippiMan
Errata: won't = want

Geez.

DOH.

MM

12 posted on 05/14/2002 10:52:11 AM PDT by MississippiMan
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