Industry composite royalty rates can be applied in practice. These market-based benchmark royalty rates measures give support for various purposes. The royalty rate reports available include an
- Annual Summary that details the average, median, maximum, minimum and interquartile range royalty rate benchmark measures for 15 different industries.
- Industry Overview that details license party profiles and a more in-depth royalty rate analysis of benchmark measures and high-level deal terms by licensee product.
Transactions —Control compensation expectations in licensing and purchase/sale of IP transactions by establishing the royalty rates playing field.
Litigation — Lower infringement damage litigation costs by using royalty rate benchmarks to model possible damage awards before moving forward with costly litigation.
Financial Reporting — Test royalty rate analysis to strengthen intangible property valuation analysis and supporting documentation under audit review in purchase price allocations under IFRS 3/ FASB ASC 805.
Taxation — Test intercompany transfer pricing agreements using benchmark royalty rate data and the interquartile range
Access our benchmark reports resources here.