High Tech Sector Royalty Rate & Deal Terms Survey
LES (USA & Canada) initiated its first High Tech Sector Royalty Rate & Deal Terms Survey in 2011.
High Tech Survey Respondents
The Survey received responses from 52 companies for the period from 2008 through 2011, with a total of 228 complete deals being submitted. The following major high technology fields were reported: aerospace, software, clean technology, communication, semiconductor, consumer products and electronics, computer, etc., 76% of which involved patents.
Key Deal Statistics
86% of respondents were licensors, with more than half of them entering the deal for monetary gain in addition to a strategic relationship. Deals with flat percentage rate royalties were weighted more towards licensees with annual sales revenue <$25M. Deals containing lump sum payments were heavily weighted towards licensees with annual sales revenue >$500M. Almost an equal split between exclusive and non-exclusive deals. Average sales-based flat percentage rate was 6%, but, the average rate within specific industries varied widely.
Click here for an executive summary of the survey. The full survey is available to LES members, so please login for access.