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Royalty rates


Questions? Email us about your royalty rates issue
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Royalty rates are generally a profit sharing mechanism between an IP owner and licensee. To analyse applicable royalty rates, Intangible Business researches public records or internal and external market information and then benchmarks these against competitors.

Intangible Business also analyses the operating profitability of IP and the amount of turnover that can be attributed to the IP alone, excluding all other factors, such as manufacturing and distribution activities through the value chain. The stronger a brand, the higher the royalty rate it can command. Applying the right royalty rate is crucial to maintaining and sustaining profitability. This analysis also underpins our royalty audit service.

It is important to note that licensing, far from diluting brand equity, can and should strengthen brand value by extending it into new markets and introducing it to new audiences - with no direct cost.

If you have any questions, or would like us to determine a royalty rate for your brand, please call us or send an email.