If you’re thinking of licensing your intellectual property or becoming a licensee, you need to be familiar with royalty agreements. The royalty agreement of a company is a central part of any licensing deal and makes sure that both parties are compensated fairly for their contributions.
Articles by Kris (Kestutis) Rudzika
Kris (Kestutis) Rudzika
Kris (Kestutis) has extensive experience in transfer pricing and specializes in operational transfer pricing, DEMPE analysis and intangibles. Previously, he was a Transfer Pricing Director at EY Belgium. He has an advanced diploma in international taxation from the Chartered Institute of Taxation in the UK. Kris is a lawyer and holds LL.M. degree. In addition, he completed financial analysis and blockchain strategy programmes at London Business School and Oxford University.
Market range royalty rates by industry
April 2020
Finding the royalty rate for your industry can be a helpful starting point if you’re valuing your intellectual property or setting royalty rates for a licensing agreement.
If you are licensing your intellectual property, finding the relevant range of royalty percentage for your intangible assets will help you set fair, accurate royalties that reflect market rates.
Legal agreements between group companies (often called ‘Intercompany agreements’ or ‘ICAs’) are an intrinsic part of Transfer Pricing compliance – a fact which is highlighted by the OECD’s Transfer Pricing Guidelines.
Trademark royalties by industry
March 2020
The royalty rates you can charge for licensing a trademark differ by industry. When you’re entering into a trademark license agreement, or you’re carrying out a transfer pricing analysis on an intercompany transfer of trademark rights, it’s helpful to know what rates are typical in the industry.
Trademark royalties
January 2020
Trademark royalties are the payments a licensee makes to a licensor in exchange for the use of their trademark.
Setting royalty rates for technology
January 2020
To determine royalty rates for technology, you need to know the market value of the intellectual property you’re licensing and use comparable license agreements as a starting point for your analysis.
Royalties in intercompany transactions
January 2020
Intercompany royalties are the remuneration charged when intangible property is transferred or licensed between related company entities. In this article, we’ll go into more detail about what royalties are, what requirements they need to meet for transfer pricing purposes, and how to set them.
Brand royalty rates: everything you need to know
January 2020
Brand royalty rates are payments made from a licensee to a licensor in exchange for the use of their brand assets. They are usually a percentage of the revenue generated by the licensee’s use of the brand.
Establishing trademark licensing royalty rates
November 2019
Trademark licensing royalty rates are payments made by a licensee to a licensor in exchange for the use of their trademark.