Archive for October, 2008

MRU Royalty Rates

Tuesday, October 14th, 2008

RoyaltyZone users can now add Minimum Royalty Per Unit (MRU) royalty rates to their agreements.   An MRU royalty rate defines a standard rate (X% of Net Sales) and a MRU ($X per unit).  RoyaltyZone compares the two calculated royalties and selects the higher (or lower, if preferred) of the two.  For example:

Standard Rate = 10% of Net Sales, MRU = $1 per Unit, Preference = Highest

  • Example 1: Units Sold = 10, Gross Sales = $90: Rate Used = MRU, Royalties Owed = $10.00
  • Example 2: Units Sold = 10, Gross Sales = $110: Rate Used = Standard, Royalties Owed = $11.10
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