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 RoyaltySource report if the parties to the agreements are related or unrelated?
    (dilemma/problematic/issue/problem/ambiguity)
    The term "Related Party" can be ambiguous.  For example, are parties related when one parties owns only 10% interest, one party is an affiliate, one party is an employee, etc.; and when did the parties become related, before or after the signing of the license agreement. We are constrained by our sources of information as we do research on the intellectual property (IP) agreement when our source doesn't disclose such information. We make a consorted effort to reference any relationship between the Licensor and Licensee in the IP Grant Section of our Licensed Property.

    EXAMPLE:  Related Party
    "This Patent Royalty Agreement is entered into on January 7, 2015.

    In this agreement, where the Licensor, individual, is the founder and chief executive officer of the Licensee, the parties agreed for the Company to obtain patent ownership.  

    The patent disclosure related to methods and apparatus for accurately calculating time with the MAC technology along with other components that can receive process and communicate information to enable locating, identifying, and tracking physical assets and data contained within the assets."