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In practice, mechanical royalties never exceed the government's "minimum" royalty rate.
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The royalty rate for MP3Pro will be three percent of revenue, with a minimum fee of $3,000 per year.
This week, Linde revealed Thomson's licensing policy for streaming or broadcasting "pure MP3". The royalty rate is two percent of revenues related to streaming, with a minimum fee of $2,000 per year.
The key terms to negotiate in a patent license are royalty rate (typically 2 to 6percentt of gross revenue for products), annual minimums (important in case the product doesn't sell), upfront monies (which licensees hate), and length of deal (you want a chance to renegotiate after a few years if you get a homerun!).
§ 3211.21 When do I owe minimum royalty?
You're worried about the royalty rate?
Reduction in royalty rate or rental.
§ 1203.251 Reduction in royalty rate or rental.
30 CFR § 1203.251 - Reduction in royalty rate or rental.
The 2009 investment agreement set the royalty rate at 5 percent.
A typical licensing deal is 2percentto6percentcent of gross sales with minimum royalty fees guaranteed.
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