TERM
ROYALTY
PAYMENT
CATEGORY & TERRITORY
Question 1: What is royalty rate ?
Royalty rate is the percentage that the licensee has to pay for using the trademark, copyrights.

Question 2: How royalty rate is assessed ?
Royalty rate is a percentage based on the retail or wholesale volume of the licensed products.

Question 3: What is the usual royalty rate ?
Market rate ranges from 5% to 15% depending on the property.

Question 4: How royalty rate is determined ?
Royalty rate is determined by licensors base on various factors. Usually low margin and mass quantity products will be assessed at lower royalty rate; high margin and less quantity products will be assessed at high rate.