Licensing Executives Society USA and Canada

The 25% Rule Still Rules: New Evidence From Pro Forma Analysis In Royalty Rates

By Jiaqing “Jack” Lu, Applied Economics Consulting Group, Inc., Sr. Economist and Director of Economic Analysis

The 25% rule is based on observations that royalty negotiations tend to a royalty rate that equals approximately one-quarter of the licensee’s expected operating profits derived from the technology. Over the years, the rule has been generalized, and sometimes is referred as the 25% to 33% rule, depending mainly on technology, industry normal, and other relevant issues.
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Can't Attend the Spring Meeting in Person? Attend Virtually!

We're excited to announce our new virtual meeting option for those who can't join us in Boston. Click here for details.

Tune in to this interview with spring meeting keynote david meeker

Listen to what Dr. Meeker, President & CEO of Genzyme, had to say about how his company has leveraged strategic licensing and what we can expect to hear at his talk in Boston next month. Click here to tune in.

Thank You to All Our Volunteers!

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FEATURED EVENT

LES 2012 Spring Meeting

May 15-17 | Hyatt Regency Boston | Boston, MA

This boutique meeting will offer plenty of opportunities to engage with industry thought leaders, partners, clients, and colleagues to discuss critical issues facing the life sciences industry. From headlining topics, such as the recent Supreme Court ruling and the America Invents Act, to ongoing industry concerns, you'll learn about new developments and strategies to help you navigate the increasingly challenging marketplace.
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