What royalty and lump payment bundles should an inventor get?

I've gather up a lot of useful information from the Internet that you may need to know. === Rate for Inventor The royalty rate for an inventor can vary from 1% to 28% of the net profits.It depends on the product itself and many other factors. Here are some examples: - 3% is the royalty rate for video game inventors.

But the inventor may ask for a higher rate up to 15%. - 10% to 12% for music royalty rate. - 5.7% licensing royalty rate for the Blackberry.

- 5% to 10% royalty rate for toy inventions. - 5% royalty rate for the inventor of antihistamine Benadryl (drug). - 3% to 5% royalty rate for infant and toddler baby products.

- 28.3% royalty payment awarded to Stanford University inventors. Source: inventionstatistics.com/Licensing_Royalt... But in other cases, some licensing agencies (the one who takes invention to the all next development stages) share 25% to 30% of the revenues. That means the inventor rate is about 75%.

Source: lambertinvent.com/faq.php === What Types of Payment You May Receive If you're an inventor, you may receive: - Percent Royalty, the regular payments an inventor receives for licensing his invention, based on percentage of sales. - Use Royalty, another form of royalty that based on number of units sold or frequency of use. - Lump Sum Payment, on-time payment for the transfer of licensing rights.

- Advance, an up-front payment instead of future royalty payment, it also can be a partial advance up-front. - Guaranteed Minimum Payments, a guarantee that the inventor will receive a certain minimum royalty payment each year. Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=2428754 === Questions You Should Ask An Invention Marketer For considering going with an marketing company, you should ask them: ---quote--- 1.

How many inventors have they represented in the last 5-10 years?2. How many of these made more money through licensing obtained by the company than they spent in having the invention marketed by them? 3.

How many inventions were presented to them in the last 5-10 years?4. How many of these inventions did they select to market? ---/quote--- source: http://www.bpmlegal.com/pinvmktg.html === Factors An Inventor Can Use in Negotiating For gher Rate - Reputation of the inventor - gh anticipated sales volume - gh selling price - Product with great innovation - The inventor furnishes materials and services - The invention provides significant manufacturing cost savings - The industry is a high rate royalty industry (for example, medical invention compare to toys) - The product has a long anticipated market life - The license is exclusive But here are the factors that decrease the royalty rate: - A lot of competition from other sources - Difficulty in making an agreement - gh start up costs to design and manufacture source: http://www.entrepreneur.com/startingabusiness/inventing/productdevelopment/article35872.html === Other Useful Links There are Royalty Distribution Analysis in Industry and Royalty Rate Segmentation in Some Technology Sectors tables you may need to know.

But because I don't know how to draw tables in Mahalo, please find it out yourself at this link: source: http://en.wikipedia.org/wiki/Royalties.

To be completely honest with you there are few factors you have to take into conisideration. I am an author and in my contracts I get a low starting royalty because my publisher pays for everything. I did all of the hard work by writing the books, but they take their money to make everything, printing, some marketing etc.So this seems like the same thing.

Being that even though the creator spent a large amount of time on his/her work if you don't have the money to back it someone will have to believe in your idea and put their own money on the line. What I would say is a climbing royalty rate. One thing you would want to make sure is that this company is willing to do what you want.

The ball is in your court, and you have a choice to either sit and wait for something better or take whatever oppourtunity comes your way first. So with the climbing royalty rate say starting at the first 3000 products sold the creator would get 8-10% of each product sold, and then let's say 3000-15000 products you would get 15% and then any sales above that you would get 25% of the sales. Of course you can work these numbers, but in reality it seems like a climbing royalty rate would be the best.

You have to take into consideration that they are the financial backing for the product therefore even though you may have more heart into and it is yours, they are paying for it and need to make more than their money back. As far as lump sum. A lot of times you can get a few thousand of a lump sum, but in most cases you would either pick some sort of royalty payment, or they would simply buy the product from you outright.

Hope this helps!

Keep in mind that if you decide to go with a licensing agreement, you can opt for a lower percentage and shop your product around to other companies for other agreements. Is your product something that can be applicable to other industries or to other products (IE: a new really awesome screw, a guitar hinge, a food ingredient)? Because if so, it may be more beneficial to you to have the option of seeking more licensing agreements.Is this partner or company the only option you have to sell your product?

Are your options limited? If so, I would negotiate for a larger percentage of profits or to be a part of this company but keeping in mind that you may have to settel for less. Can you afford to start your own company and hire this 'partner' or company from strictly a selling/marketing standpoint?

If so, you invest a lot more but it is 100% yours...

I've gather up a lot of useful information from the Internet that you may need to know. === Rate for Inventor The royalty rate for an inventor can vary from 1% to 28% of the net profits. It depends on the product itself and many other factors.

Here are some examples: - 3% is the royalty rate for video game inventors. But the inventor may ask for a higher rate up to 15%. - 10% to 12% for music royalty rate.

- 5.7% licensing royalty rate for the Blackberry. - 5% to 10% royalty rate for toy inventions. - 5% royalty rate for the inventor of antihistamine Benadryl (drug).

- 3% to 5% royalty rate for infant and toddler baby products. - 28.3% royalty payment awarded to Stanford University inventors. Source: inventionstatistics.com/Licensing_Royalt... But in other cases, some licensing agencies (the one who takes invention to the all next development stages) share 25% to 30% of the revenues.

That means the inventor rate is about 75%. Source: lambertinvent.com/faq.php === What Types of Payment You May Receive If you're an inventor, you may receive: - Percent Royalty, the regular payments an inventor receives for licensing his invention, based on percentage of sales. - Use Royalty, another form of royalty that based on number of units sold or frequency of use.

- Lump Sum Payment, on-time payment for the transfer of licensing rights. - Advance, an up-front payment instead of future royalty payment, it also can be a partial advance up-front. - Guaranteed Minimum Payments, a guarantee that the inventor will receive a certain minimum royalty payment each year.

Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=2428754 === Questions You Should Ask An Invention Marketer For considering going with an marketing company, you should ask them: ---quote--- 1. How many inventors have they represented in the last 5-10 years? 2.

How many of these made more money through licensing obtained by the company than they spent in having the invention marketed by them? 3. How many inventions were presented to them in the last 5-10 years?

4. How many of these inventions did they select to market? ---/quote--- source: http://www.bpmlegal.com/pinvmktg.html === Factors An Inventor Can Use in Negotiating For Higher Rate - Reputation of the inventor - High anticipated sales volume - High selling price - Product with great innovation - The inventor furnishes materials and services - The invention provides significant manufacturing cost savings - The industry is a high rate royalty industry (for example, medical invention compare to toys) - The product has a long anticipated market life - The license is exclusive But here are the factors that decrease the royalty rate: - A lot of competition from other sources - Difficulty in making an agreement - High start up costs to design and manufacture source: http://www.entrepreneur.com/startingabusiness/inventing/productdevelopment/article35872.html === Other Useful Links There are Royalty Distribution Analysis in Industry and Royalty Rate Segmentation in Some Technology Sectors tables you may need to know.

But because I don't know how to draw tables in Mahalo, please find it out yourself at this link: source: http://en.wikipedia.org/wiki/Royalties.

One thing that should be noted is that the company is selling the product does not means that they have got the ownership rights /patent to it. Perhaps a licensing agreement on per year basis can safeguard your interests. You can decide that for lets say 2 years, the minimum amount to be paid to you would be $xxxxx.

But the product becomes immensely popular after release, and after two years you can renew the agreement for a greater amount. Secondly - The share of the marketing company depends from 5 percent to 25 percent maximum from the product sale. Thirdly - The ownership of the product would lie between you and your friend.

That percentage can be decided between you two. In case the product is being sold off then you need to be paid off for the effort you put in. So that could be 300 hours x 60-200$ per hour + costs involved.

You should have posted the information that the company offered to you, so that I get a better understanding of the situation..

To be completely honest with you there are few factors you have to take into conisideration. I am an author and in my contracts I get a low starting royalty because my publisher pays for everything. I did all of the hard work by writing the books, but they take their money to make everything, printing, some marketing etc. So this seems like the same thing.

Being that even though the creator spent a large amount of time on his/her work if you don't have the money to back it someone will have to believe in your idea and put their own money on the line. What I would say is a climbing royalty rate. One thing you would want to make sure is that this company is willing to do what you want.

The ball is in your court, and you have a choice to either sit and wait for something better or take whatever oppourtunity comes your way first. So with the climbing royalty rate say starting at the first 3000 products sold the creator would get 8-10% of each product sold, and then let's say 3000-15000 products you would get 15% and then any sales above that you would get 25% of the sales. Of course you can work these numbers, but in reality it seems like a climbing royalty rate would be the best.

You have to take into consideration that they are the financial backing for the product therefore even though you may have more heart into and it is yours, they are paying for it and need to make more than their money back. As far as lump sum. A lot of times you can get a few thousand of a lump sum, but in most cases you would either pick some sort of royalty payment, or they would simply buy the product from you outright.

Hope this helps!

Keep in mind that if you decide to go with a licensing agreement, you can opt for a lower percentage and shop your product around to other companies for other agreements. Is your product something that can be applicable to other industries or to other products (IE: a new really awesome screw, a guitar hinge, a food ingredient)? Because if so, it may be more beneficial to you to have the option of seeking more licensing agreements.

Is this partner or company the only option you have to sell your product? Are your options limited? If so, I would negotiate for a larger percentage of profits or to be a part of this company but keeping in mind that you may have to settel for less.

Can you afford to start your own company and hire this 'partner' or company from strictly a selling/marketing standpoint? If so, you invest a lot more but it is 100% yours...

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.