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Category Archives: Licensing Terms
Managing an Advance and/or Minimum Guarantee
A Guarantee is the minimum Royalty Payment that a Licensee is contractually obligated to pay a Licensor over the term of the agreement. Guarantees may be paid one time, quarterly, semi-annually or annually, are nonrefundable and can be credited against … Continue reading
Posted in Features, Licensing, Licensing Terms
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RoyaltyZone releases enhanced Royalty Participation features
Participation royalties are a portion of earned royalties that must be paid to a third party, such as a licensing agent, intellectual property owner, actor, athlete, inventor, or artist. Participation royalties are often paid for only a specific licensed property … Continue reading
Posted in Features, Licensing Terms, News
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The $55 million dollar royalty reporting error
$55 million. That’s a lot of scratch. Hard to imagine that amount of money going unnoticed. For 15 years. But it did, in an extreme and costly example of how paper and spreadsheet royalty report templates allow Licensors to over … Continue reading
Posted in Licensing Terms, News
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FOB Royalty Rates
License agreements commonly use an FOB royalty rate to offset the difference in FOB pricing. The FOB royalty rate is usually an additional 1% to 3% higher than the standard royalty rate (for percent of net sales royalty rates). FOB … Continue reading
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