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?

    • Do public companies have to disclose their royalty deals?
    Do public companies have to disclose their royalty deals? In the US the answer is Yes, No and Maybe.

    Yes, if the license is material to a company's success. For example, if a one product company is dependent on in-licensed technology, then that license and deal economics would be reported to the public.

    No, if the license is not material to a company's success.

    Maybe, Disclosure of sensitive license information, with or without the deal economics, may have other benefits, all of which may have a positive or negative impact with investors. Many times the filing company releases the license, but with pensive information deleted (redacted). However, the clock begins to run on the redacted license and eventually the entire license is released, interested parties must make a special request to see the license. We track request these licenses.