Royalty Rates for Technology, 6th Edition (PDF)
In this information packed resource you’ll also get detailed guidance on calculating royalty rates. You’ll find straightforward descriptions and guidance on different models used in calculating royalty rates and valuation:
- Proper use of simple rules of thumb explains how to properly apply simple yet powerful pricing models, and where many licensing execs go wrong
- Infringement damages analysis can determine a reasonable royalty as the difference between profits expected from infringing sales and a normal industry profit level. We show you an equation to help summarize this approach.
- Investment rate of return analysis requires consideration of the profits expected from exploitation of the various assets of a business including the technology that will be licensed. See how a fair rate of return for use of a specific patent can be derived and expressed as a royalty rate
- Discounted cash flow analysis is an excellent model for valuing and pricing technology. We show you how it captures forecasts, capital spending, and R&D expenses, along with other development costs, all in one analysis yielding an appropriate royalty rate