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?

    • What is the source(s) of information used by RoyaltySource?
    Our primary source is the US SEC Filings. We also expand that source to include periodicals such as newspaper articles, professional journal articles and press releases. Please note that while we attempt to source all our summaries to an actual license agreement, sometimes we are not successful and our source of information may be a reference in a US SEC Filing or a periodical.

    When you order a search and gain access to the draft search results, you will be able to identify those licenses that are sourced to an actual license agreement. We list that in the draft as a "Material Contract." You also see a source referenced as "SEC Filing." This refers to a reference we found in an SEC filed document, such as a 10K, but we found no license agreement. You will also see a source referenced as "Other." This refers to a periodical. This means we found no supporting license agreement or SEC Filing reference.