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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.

IP valuation is the process of determining the value of intellectual property assets such as patents, trademarks, copyrights and trade secrets. If you plan to buy, sell or license IP, you need to carry out an IP valuation to understand the value of the IP assets in question.

Australia’s transfer pricing rules seek to prevent the underpayment of tax in Australia. The rules aim to make sure that businesses price their related-party international dealings in accordance with what is excepted from independent parties in the same situation.

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.

How to license a patent for royalties: If you’ve invented a new product, you can either bring it to market yourself or license the rights to your intellectual property to a third party.

Intellectual property royalties are payments made by a licensee to a licensor in exchange for the use of the licensor’s intellectual property.

A license rate is a fee that is charged for the use of a licensed product or licensed intellectual property. In a typical licensing deal, the licensor gives the licensee permission to use their IP, under certain conditions, in exchange for a license rate that is set out in a license agreement.

When you’re negotiating royalty rates for a patent licensing deal, or carrying out a transfer pricing analysis on an intercompany transaction involving patents, it can be useful to see what licensing fees and royalty rates other organizations charged for similar transactions, so that you can get an idea of what the market rate is.