Welcome to the RoyaltySource® IP Data Guide

At RoyaltySource®, we maintain a database of intangible property licenses that report a royalty rate. These benchmarks are used in valuation, license negotiations, and transfer pricing assignments. Here in the RoyaltySource IP Data Guide, we will offer some insight, frequently asked questions, and proposed solutions offered over the past 20 years from RoyaltySource.
Questions

  • What type of agreements are included in the RoyaltySource database?
  • Do public companies have to disclose their royalty deals?
  • What is the source of RoyaltySource information?
  • Why are most license agreements dated?
  • Does the database include agreements from around the world?
  • Do all transactions in the database report a royalty rate and what is the definition of Royalty Base?
  • What is a tiered royalty and why is there a tiered royalty structure?
  • What is royalty rate upfront fee?
  • Does RoyaltySource report if the parties to the agreements are related or unrelated?
  • What is the difference in rates/values between exclusive and non-exclusive royalty rates charged in technology/software industries?
  • Can you identify licenses in the database for patented and unpatented technology?
  • Can you use franchise agreements as a guide to gain insight into trademark royalty rates?
  • Does RoyaltySource have general royalty rates industry data?
  • Why RoyaltySource doesn't focus on SIC number but instead on the description of the licensed IP?
  • What is the 25% Rule?
  • How do I perform a RoyaltySource online database search?

    • Does the database include agreements from around the world?
    While all geographic territories are covered in our database, we are limited to what is reported to the public. In the United States, companies must disclose information to the investing public through SEC Filings. They also disclose information to the press. We search these information sources every day for transaction data. Therefore, a good number of the transactions in our database are between a U.S. licensor and a U.S. licensee. Sometimes a U.S. company will do a deal with a foreign company and report that to the public--we would capture that information. Sometimes a transaction is reported in the foreign press and we would pick up that transaction as well.

    Please note that we try to capture the country/region information related to the licensor/licensee in the licensed property descriptions that we send in our initial draft, but here again, we are limited to what the source of information reports to the public.

    EXAMPLE: Geography "This agreement is effective as of March 4, 2006.

    Licensor grants the Chinese Licensee an exclusive, non-transferable, perpetual license in the field of Therapeutic usage in order to develop and conduct clinical trials to achieve Chinese FDA (SFDA) approval of the rabbit anti-TNFalpha monoclonal antibody compounds. Under these rights, Licensor grants both the manufacturing and distribution rights of anti-TNFalpha monoclonal antibody therapeutics covered under the intellectual properties rights owned by Licensor.

    Licensor utilizes a proprietary and patented technology in the development and production of Rabbit Monoclonal Antibodies (RabMAb technology).

    Licensor has developed a panel of 50 novel anti-TNFalpha rabbit monoclonal antibodies that are highly potent compared with Remicade and Humira in in-vitro assays.

    Licensor will provide Humanized Rabbit anti-TNFalpha monoclonal antibodies to Licensee.

    The field is for commercializing anti-TNFalpha monoclonal antibodies to be used as therapeutic agents. Anti-TNFalpha therapies are effective in treating Rheumatoid arthritis, Psoriasis, Psoriatic arthritis, Ankylosing spondylis and Crohns diseases.

    The territory defined for the Therapeutic rights granted shall be the Peoples Republic of China."