Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
  1. Home
  2. Search

Refine search

Refine search

Access:
Content type:
Publication date:
Apply   From and To filters
Subject: Show more
Journals Show more
Publishers: Show more
Societies Show more
Series: Show more
Collections: Show more

Actions for selected content:

Select all | Deselect all
  • View selected items
  • Export citations
  • Download PDF (zip)
  • Save to Kindle
  • Save to Dropbox
  • Save to Google Drive

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Please provide a title, maximum of 40 characters.
Cancel
×

1 results

  • 8 - Financial Terms

  • from Part II - License Building Blocks
  • Jorge L. Contreras, University of Utah
  • Book:
    Intellectual Property Licensing and Transactions
    Published online:
    21 June 2022
    Print publication:
    30 June 2022, pp 196-247
    • Chapter
      • You have access
      • Open access
    • PDF
    • HTML
    • Export citation

  • Summary

    Chapter 8 deals with the financial terms of licensing agreements, including fixed/up-front/lump sum payments, running royalties, sublicensing income, milestone payments (Law v. BioHeart), equity compensation, cost reimbursement (including for patent prosecution), most-favored clauses (Kohle v. Hercules) and audit clauses. Special attention is given to the calculation of license royalty rates, including tiered royalties, the royalty base (Allen Archerty v. Precision Shooting), the entire market value rule (EMVR), the smallest-salable patent practicing unit (SSPPU) rule, now-disfavored rules of thumb such as the 25% rule, standard exclusions from royalty calculations, minimum royalties, royalty caps, royalty stacking clauses and escalation clauses (Arbitron v. Tralyn Broadcasting). Special issues such as reach-through royalties and package royalties are also addressed.